As Review Journal (RJ) reports, the gross generated revenue of the Nevada casino industry reached the level of $1.29 billion in May 2023, according to the data of the Nevada Gaming Control Board. Although Clark County reportedly benefited from the strong Strip performance to contribute $1.1 billion to the state industry performance, the total casino gaming win in May 2023 was around 1% lower than the May 2022.
According to RJ, Michael Lawton, senior economic analyst for the Control Board, said that the comparative results may be challenging in the forthcoming months. He reportedly explained: “The state has recorded decreases in two of the last three months. Over the next year, every monthly comparison will be up against the highest monthly total for that particular month or the second highest total for that specific month. Needless to say the comparisons are going to be the most difficult the state has ever faced.”
Mixed Casino Market Results:
These difficulties are reportedly based on the mixed results of the state’s 20 casino markets, where seven performed better on the year-on-year basis, with 13 recording weaker performance on the same basis. As reported by RJ, North Las Vegas had the worst performance with a 6.6% revenue decrease from the prior year to $24.2 million, while Clark County saw a 6.5% increase to $150.2 million to exercise the best performance in the state when compared to May 2022.
Strong May 2023 Numbers:
With some state markets reportedly improving up to 11.3 percent and others recording up to 20 percent comparative decline, the comparisons seem increasingly challenging and in line with the Control Board analyst’s predictions for the future months. However, although Strip gaming win reportedly declined by 2.1 percent and downtown Las Vegas revenues fell by 6.6 percent, Review Journal reports that May’s numbers were strong regardless of the Lawton’s predictions drawn from March results.
The level of gross revenues generated in the state in May 2023 was the eighth highest of all time, according to RJ. At the same time, Clark County and the Strip reportedly exercised the ninth best-ever performance, with downtown Las Vegas revenues reportedly arriving at the 15th highest level of all time.
Results Far Beyond 2019:
As reported by RJ, Joseph Greff, gaming industry analyst from J.P. Morgan, said that the higher amounts of wagers (”drop”) and the higher percentage of wagers won by casinos (”hold”) drove the revenues in May 2023 to the levels far beyond the pre-pandemic May 2019. He reportedly said:
“For the Strip, table game hold was 15.8 percent, versus 15 percent the prior year and a 14 percent average over all of 2022. Baccarat hold was 16.9 percent, versus 17.1 percent the prior year, 7.7 percent in 2019 and the normalized 13-14 percent range. Relative to May 2019, table game drop was 4 percent higher, slot handle was 36 percent higher, and baccarat drop was 11 percent higher. In the Las Vegas Locals market, gross gaming revenue increased 4 percent year-over-year (28 percent above 2019).”
RJ also reports that slot machines and sports wagering revenue recorded a rising gaming win, while table games‘ saw lower revenue levels in May 2023.
The Nevada sports wagering operators reportedly generated $30.1 million in gross revenues, which is 11.4 percent above the last year’s level. Slot operators reportedly made $877.9 million to see a modest 0.9 percent rise in comparison to May 2022. On the other hand, as RJ reports, table, counter and card games won $411.2 million to face a 4.4 percent decline in May 2023 on the year-on-year basis.
In addition, the Control Board’s Lawton reportedly indicated that a number of special events, such as Electric Daisy Carnival, Katy Perry performance at Resorts World, and Bruno Mars gig at Park MGM, helped boost the revenues in the observed month.
$13.9 Billion Gaming Win over 11 Months:
With the 2022-23 fiscal year winding up at June 30, 2023, the Nevada casino industry reportedly completed 11 months with revenues 3.8 % higher than the prior fiscal period and generated $13.9 billion in gross revenues. Clark County generated $12 billion or 4.2 % more than in the same period last year, while the Strip recorded a 5.4% increase to arrive at $7.8 billion, as RJ reports. According to the same source, Clark County and the Strip contributed to the state winnings with 86.6 percent and, respectively, 56.3 percent.
Increased Tax Collection:
The gaming win generated in the state will reportedly resulted in the competent authorities collecting $84.3 million in gaming taxes from May to reach the total of $971.2 million over the 11-month period, which represents a 0.7% increase when compared to the 11 months of the 2021-22 fiscal year.
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