Nevada GGR Rises 7.5%, Gains Exceed $1BN

October marked the wealthiest and most lucrative month for casinos in Nevada in over five years. During the month, casino operators in the state amassed a total gross gaming revenue of $1,062,796,000 which is the fifth time in history that the state’s casinos made more than $1 billion during a 30-day period.

The last time this feat was accomplished was in 2008!

A Decade of Wait

It goes without saying that this $1.062 billion earning is the biggest monthly result in 2018. The most significant surge was reported on blackjack tables – 40% increase compared to October 2017, with $125.48 million gained.

Slots generated a more modest jump of only 5.75%, but the overall share was much higher – $693.5 million. Across the entire state, year-on-year gross gaming revenue was up 2.6%.

Las Vegas has recovered significantly from last year’s losses that were chiefly incurred by the tragic mass shootings that left 58 people dead. Casinos in Sin City made a total revenue of $593.4 million in October – a significant increase of more than 12% from October 2017. Blackjack also fared well there – this game netted a 56% climb.

This is all good news for gambling companies, operators and investors who were facing a rather long period of slow growth over the 12-month period. “It was a great month, especially coming off that difficult third quarter. It’s nice to start the fourth quarter with a month like this,” said Nevada Gaming Control Board senior analyst, Michael Lawton.

Weathering the Storm

It was a difficult year for Nevada, and several key factors contributed to that. A heightened sense of caution repelled visitors from going to Las Vegas in as high numbers as before, although the visitation numbers dropped only marginally.

Also, the liberalization of online and sports gambling all across the US this year created a much stiffer competition to Nevada, some of them being the neighboring states. Finally, the third quarter saw decreasing revenues during July and August and a slight betterment in September.

The recent Thanksgiving/Black Friday holiday provided a much-needed injection of visitors and spending to Las Vegas, with out-of-townies coming to city over the extended holiday weekend.

Around 300,000 visitors came to the city enticed by higher wagers and more disposable income, prompting them to spend around $220 million…

…which should help the main cause that is finishing this year with a third consecutive GGR gain, but that will depend on the outcome of November and December gambling. Las Vegas also faces a potential first decline since 2015, although forecasts suggests that will likely not happen.

Another contributing factor that heralds a happy ending to the year for Nevada is the surging sports betting market which amassed a record $571 million in wagers during September.

Source:

“Nevada gambling revenue sures $1 billion in October, most in five years”, Regina Garcia Cano, news3lv.com, November 27, 2018.