NV Revenue Falls Again as Strip Slides 5 Percent
Nevada posted $1.27 billion in March gross gaming revenue, a 1.1 percent decrease year-on-year. For the fiscal year to date, Nevada gaming is down 1.14 percent from last year, which was a record for the Silver State.
The Las Vegas Strip posted GGR of $681.7 million for the month, down 5 percent YoY. Excluding January, the Strip has now posted YoY declines in seven of the last eight months. As we enter the last stretch of the fiscal year, gaming revenue in America’s gaming capital is down 3.35 percent.
Despite the Strip’s decline, Clark County overall was only down 1.75 percent thanks to strong months from downtown Las Vegas ($85 million, +11.5 percent) and the Boulder Strip ($86.3 million, +10.2 percent). The Las Vegas locals market had a down month ($162.8 million, -2.5 percent), but is still up 6 percent year-to-date with over $1.4 billion in GGR.
The Strip’s March decline was in part attributable to baccarat, and generally speaking, the game’s performance is typically in line with the market overall. In March, the Strip posted baccarat GGR of $73.3 million, down more than 34 percent YoY.
March was by and large a forgettable month for the northern Nevada markets, with the exception of Reno. The Biggest Little City saw a 10 percent YoY jump to $57.6 million. With $573.5 million in GGR for the fiscal year, Reno is up 1.3 percent to this point, the best of any major northern market.
Statewide sports betting GGR was $22.2 million, down more than 25 percent YoY. Mobile betting accounted for $15.5 million of that, down 40 percent. Basketball betting specifically came in at $24.5 million, a 24 percent drop. The Strip fared somewhat better, dropping just 16.6 percent to $7.5 million. Basketball results were similar to the state overall, dropping 20 percent to $10.6 million.
Judge Grants Stay in Mount Airy Class-Action
Pennsylvania’s Mount Airy Casino Resort and two former employees who filed a class-action lawsuit against the casino have been granted a joint motion to stay the case as both sides “are exploring settlement in this matter and are in the process of exchanging data and information allowing the Parties to determine whether early resolution is possible,” per the Pocono Record.
The lawsuit, first filed in February, accuses the casino of violating labor laws by improperly distributing pooled tips, rounding down clock-outs and other issues. As of now, the suit has grown to include 99 additional defendants. Mediation is currently scheduled for July 22.
Defunct Supplier Wins Big Judgment Against Caesars
Tipping Point Gaming, a small gaming supplier that closed during the Covid pandemic, has been awarded $20 million worth of damages after a multi-year legal fight with Caesars Entertainment, according to an April 28 report from the Las Vegas Review-Journal.
Tipping Point developed a slot machine side-bet product and partnered with Caesars in 2014 to develop its technology and take it to the larger market. The partnership was amicable at first, but soured in 2018 when Caesars filed a breach of contract suit, alleging that Tipping Point had failed to secure intellectual property rights for its products.
After a lower court sided with Caesars, the state Supreme Court ultimately ordered a retrial last June. On April 11, the court ruled that Caesars had intentionally interfered with a transaction involving Tipping Point and Planet Bingo. Tipping Point was awarded $15 million in compensatory damages and $5 million in punitive damages. Caesars did not comment on the ruling.
“We would have definitely transformed the industry,” Tipping Point Principal Sam Johnson told the Review-Journal. “However, once Caesars intentionally tainted Tipping Point’s intellectual property, instead of Caesars being the market-maker Tipping Point relied on, Caesars prevented a market from ever being made. I’m thankful though that Caesars’ interference with the success of Tipping Point, their vendor, was finally vindicated by the jury. However, due to the lengthy and expensive litigation brought on by Caesars, I lost the opportunity to see this vision through.”
PA’s Presque Isle Warns of Potential Closure
Officials from Presque Isle Downs and Casino in Erie, Pennsylvania have warned that increasing competition from skill games, the slot-like games that have proliferated in locations across the state, may cause it to ultimately close. The casino was opened in 2007.
“We’re concerned today about the long-term sustainability of the property,” Vice President and GM Gary Hendricks told YourErie.com.
Pennsylvania casinos pay a 54 percent tax rate on slot machines, and Presque Isle also has revenue-sharing obligations with the county that make the total impact about 64 percent. Unlicensed skill games in venues such as bars and convenience stores are not subject to such taxes and do not have the same consumer protections as the regulated industry. Despite this, the games have won multiple court victories and continue to grow in several states.
“We’re going to get to a point where it’s the straw that’s gonna break the camel’s back,” Hendricks said. “We don’t know when that is, but we need some relief. And you need to understand that this is serious.“
MGM Cuts Concierge Desk at Six Strip Properties
MGM Resorts announced April 26 that it is closing the in-person concierge desk at six Las Vegas Strip properties: MGM Grand, Mandalay Bay, Park MGM, Vdara, New York-New York and the Signature. Around 34 total employees were laid off as a result of the closures, with the company offering placement elsewhere or transition services.
The company maintained that the changes, as well as other similar moves in recent years, were inspired by changes in customer trends rather than financial cost-cutting, per the Las Vegas Review-Journal.
NV Horse Trainer Banned After Horse Tests Positive for Cocaine
The Nevada Gaming Commission April 24 fined Utah-based horse trainer Alvaro Torres $5,000 and revoked his state license for at least five years after one of his horses tested positive for cocaine after winning a race at the Elko County Fairgrounds last summer. Due to the fact that the tests results are published weeks after the tests are administered, there is no telling how the substance got into the horse’s system, and therefore the trainer is held liable.
“It’s such an egregious action,” Commissioner Brian Krolicki said during the hearing, per CDC Gaming. “We all share the outrage, but you calmed me down. Not only do I support what the Gaming Control Board has recommended but wondered why it wouldn’t be longer. I can’t assume the trainer was responsible. He was responsible legally from a gaming aspect, but there is in theory doubt how the narcotic got into the horse. I accept that, and I just wished we knew who it was.”
AGA Hosts Inaugural RG Leadership Roundtable
The American Gaming Association (AGA) hosted its first Responsible Gaming Leadership Roundtable in Boston, bringing together top regulators, operators and responsible gaming experts to advance the next generation of responsible gaming initiatives. The roundtable also spotlighted the AGA’s newest responsible gaming platform, “Play Smart from the Start,” encouraging players to stay in control, play with purpose, and keep entertainment at the heart of their gaming experience.
The event featured a distinguished panel of speakers, including:
- Jordan Maynard, Chair, Massachusetts Gaming Commission
- Lori Kalani, Chief Responsible Gaming Officer, DraftKings
- Louis Theros, President of Northeast Group, MGM Resorts International
- Mark Vander Linden, Director of Research and Responsible Gaming, Massachusetts Gaming Commission
- Marlene Warner, Executive Director, Massachusetts Council on Gaming and Health
- Joe Maloney, Senior Vice President of Strategic Communications, American Gaming Association
- Tres York, Vice President of Government Relations, American Gaming Association
“Sound policy is the foundation of effective responsible gaming,” said Tres York, vice president of government relations at the AGA. “Today’s roundtable in Massachusetts reinforced how critical it is for state regulators and the legal gaming industry to work hand in hand. By continuing this kind of collaboration, we can ensure responsible gaming policies evolve with the marketplace and reflect the highest standards for protecting players and strengthening the industry.”
Anthony Williams Named President, CEO of Q Casino, DRA
Following the departure of longtime CEO Alex Dixon in January, Iowa’s Q Casino and Resort and the Dubuque Racing Association (DRA) have tapped Anthony Williams to be his successor, effective July 1. Williams currently serves as senior vice president of operations strategy and QE development at MGM Resorts.
“With his many years of gaming industry experience and a strong track record of driving operational excellence and implementing strategic planning and capital improvement initiatives, the board felt Anthony’s background and expertise was well-suited for becoming our next leader,” DRA Board Chair Lori Thielen said in a statement. “We are looking forward to having him jump in and help keep our momentum going, especially when it comes to the ongoing renovation and expansion of Q Casino + Resort and our future plans for the continued development of Schmitt Island.”
