Posted on: September 27, 2024, 01:28h.
Last updated on: September 27, 2024, 01:28h.
Las Vegas welcomed nearly 3.4 million visitors last month, a 2.4% year-over-year increase. However, the volume bump didn’t pay off on the casino floors, as a difficult calendar and poor house win rates sent gaming revenue south.
The Nevada Gaming Control Board reveals that August gross gaming revenue (GGR) on the Las Vegas Strip totaled just shy of $643.7 million. That was 3.5% lower than what Strip casinos won in August 2023.
Downtown Las Vegas casinos saw GGR slide almost 9% to $58.3 million. Things on the Boulder Strip were even worse, as casino win tumbled about 22% to $64.8 million.
Clark County, home to the three metered markets, collectively reported a gaming decline of 4.4% to $980.9 million. Michael Lawton, the NGCB’s senior economic analyst, partly blamed how the calendar fell for the downward marks.
A lot of the volatility you are seeing downtown and on the Boulder Strip is the result of the month of August ending on a Saturday. As a result of the timing of slot collections falling into September, the revenue will be recognized and reported to the Board in September’s filings,” Lawton explained.
Nonetheless, August marked the second month in a row where statewide GGR declined from 2023.
Poor Hold
Along with August ending on a Saturday, Lawton blamed gamblers’ luck for the monthly numbers.
Baccarat, the game of choice among many Asian high rollers, saw GGR on the Strip crash 34% to $75.7 million. Without baccarat, Strip revenue in August would have been up year-over-year by 2.8%. Oddsmakers on the Strip reported revenue of just $7.4 million on a dismal 3.7% hold rate.
The theme was experienced in other major markets like Washoe County and Reno, as statewide GGR for the month was down 3.8% to $1.16 billion. Revenue from tables and slots was both down 3.8%, as luck went players’ way more than it did in the same month a year ago.
August wasn’t as bad as some analysts expected. Deutsche Bank was calling for a year-over-year loss of 4.8%.
The year-over-year GGR declines in Las Vegas and Reno overshadowed smaller markets that saw gaming revenue improve in August.
Carson Valley GGR climbed 9% to $12.3 million, Churchill County was up 24% to $2.4 million, and Douglas County South Shore Lake Tahoe was up slightly to $26.7 million.
Lyon County casino win climbed almost 1% to $5.5 million, Nye County was up 4% to $5.6 million, Washoe County was up 12% to $6.5 million, and White Pine County expanded by 4% to $1.2 million.
Room Occupancy, Airport Traffic
The Las Vegas Convention and Visitors Authority (LVCVA) revealed that leisure travel fueled the August visitor volume bounce. While convention attendance fell more than 1% to 638,300 attendees, public visitation helped push the monthly count upwards of 2%.
That resulted in Clark County’s hotel occupancy rate climbing 0.9 points to 81.2%. Weekend occupancy rates rose to 90.2% while weekday occupancy, which relies on business travelers, was down slightly to 76.9%. Strip occupancy for the month was at almost 85% on an average nightly rate of $186.
Harry Reid International Airport facilitated over 4.8 million arriving and departing passengers in August, which was a 5% larger load. Year to date through August, Las Vegas’ primary air hub has served more than 38.7 million people. That’s nearly 3% more than in 2023, which was a record year for passenger traffic at the airport.
Southwest dominates the Las Vegas market. The budget airline accounted for 14.5 million fliers through eight months of 2024.
