Thus far, 2016 is off to a poor start for Nevada gaming, the state Gaming Control Board reported.
Casinos with non-restricted licenses netted a gaming win of $925,316,080 in January, which was down by 2.8 percent from a year earlier, the Gaming Control Board reported.
Action on the Strip was worse, with casinos reporting a $530 million take for the month, down 7.7 percent from a year ago. A month earlier in December, Strip casinos reported an 8.2 percent increase in their gaming take. January’s $530 million figure accounted for about 57 percent of the state’s total.
Largely driving the decrease in gaming revenue is a steep decline in baccarat gaming, which recorded $101.4 million in revenue, which is down by 26.3 percent from January 2015.
Those numbers likely will rebound in February, though, as the popular Chinese New Year celebrations on the Strip attract more Chinese bettors, among whom baccarat is very popular.
While gaming dollars are down on the Las Vegas Strip and statewide, Downtown Las Vegas casinos said their gaming revenues grew in January by 8.8 percent from January 2015.
To make up for gaming losses, Strip casinos now derive most of their revenue from entertainment, food and beverage, and hosting events.
Non-gaming revenue now accounts for about 65 percent of revenues for Strip casinos, according to Stifel Nicolaus Capital Markets.
Catering to travel groups, conventions, trade shows, and other large bookings gives the casinos a greater ability to compete against gaming-only competitors, Gaming Analyst Steven Wieczynski.
A good example is the wildly popular International CES consumer electronics expo, which takes place each January at the Las Vegas Convention Center. Although its attendees fill hotels on the Las Vegas Strip, Wells Fargo Gaming Analyst Cameron McKnight said they typically don’t gamble much, and neither do many other convention-goers.
But, they do enjoy taking in local entertainment, dining, clubs, bars, and other attractions, and that more than makes up for declining gaming revenues at Strip properties.
Among new trends in Strip entertainment is the emergence of daytime clubs. Venues all along the Las Vegas Strip now have clubs and DJs dedicated for afternoon crowds, either at one of dozens of pool locations or indoors.
Outdoor pool clubs in particular are popular, with entry costs ranging from free to thousands of dollars to use a cabana for the day. Many outdoor pool dayclub offer table gaming while lounging in pools and enjoying beers, margaritas, and other popular beverages.
Among some of the more popular indoor and outdoor dayclubs are Lavo at the Palazzo, Hyde Bellagio, Ghostbar Dayclub at the Palms, and the Marque Dayclub Dome at the Cosmopolitan.
