A bad month at the baccarat tables can be blamed for an 11 percent drop in gaming revenue on the Las Vegas Strip in May. The effect was enough to drag down casino win statewide by 6 percent compared to May 2018.
On the Strip, where the game favored by high-rolling Asian gamblers is dominated by a dozen or so of the largest resorts, revenue plunged from $581.7 million last May to $517.3 million this year.
Baccarat wagers were down 3.3 percent, which was one factor. But it was luck that proved the killer. The house held a meager 7.55 percent versus 16.1 percent in May 2018 (the average is 12-13 percent).
“That was pretty much May in a nutshell,” said Michael Lawton, senior research analyst for the Nevada Gaming Control Board.
Statewide, the drop from last May’s $1.04 billion to $981.8 million was the worst in a string of five straight monthly losses in 2019. Revenue is down 2.3 percent over that period. The Strip is down 4.9 percent. (Strip revenues have actually fallen six straight months, including last December.)
According to Lawton, however, if you exclude baccarat, revenue statewide is up 1.6 percent through May, and the Strip is up 2.4 percent.
Taking slot machines as a key indicator, the win statewide increased 1.5 percent in May to $679.7 million, the eighth increase in the last nine months. Handle was $9.8 billion, up 3.6 percent over last May, and the ninth increase of the last 10 months.
Visitation to Southern Nevada grew 1.7 percent to 3.69 million tourists during May, according to the Las Vegas Convention and Visitors Authority, boosted by a 6.5 percent growth in convention attendance. Citywide occupancy was 90.8 percent during the month, which included increases in both mid-week and weekend visitation.
Overall, analysts are optimistic.
Macquarie Securities’ Chad Beynon noted that non-baccarat trends on the Strip are stable, and casinos are expressing a positive outlook despite “low-growth” room-booking trends over the last several months.
“Free and independent travelers and the transient side of the business seem to be trending well, which we expect to translate into solid second quarter hotel trends,” Beynon said. “This will lead to higher food and beverage spend, which has been the trend over the last several quarters for operators.”
In the north, Reno gaming revenues increased for the second straight month, up 3 percent to $55.2 million, while Washoe County as a whole was up 2.3 percent. South Lake Tahoe revenues increased 11.5 percent.
Through the first five months of the year, both Reno and Washoe County are down less than 1 percent.
