Nevada gaming revenue crossed the $1 billion mark for the 25th consecutive month in March. According to the monthly gaming revenue report from the Nevada Gaming Control Board (NGCB), casinos throughout Nevada earned a total of $1.31 billion in March.
Despite reaching this benchmark, gaming revenue slightly decreased by 3.18% in March. During the same period last year, Nevada casinos won $1.35 billion.
In March, visitation to Las Vegas increased by 9.6% to 3.6 million. Meanwhile, gaming revenue in Clark County decreased by 2.48%. The decline on the Las Vegas Strip was slightly higher at 2.9%.
While gaming revenue dropped slightly and visitation remained high in March, casino operators like Caesars and MGM Resorts both reported record-breaking revenue during the first quarter of the year.
March might be a blip for Nevada gaming revenue. At the same time, the results could be an indicator that there might be a slowdown in gaming moving forward.
The American Gaming Association (AGA) is expecting a nationwide slowdown in gambling revenue. Nevada is a unique gaming market compared to anywhere else in the country, so the report might not be applicable to the Silver State.
Read more about Nevada’ t gaming income in 03
Overall, Nevada’s gaming revenue in March was slightly down compared to the previous year, according to the NGCB report. This marked the third time in the past year that Nevada casinos experienced lower revenue than the previous year.
In total, Nevada casinos generated $1.31 billion in gaming revenue. However, casinos in different parts of the state had different outcomes.
Gaming revenue in northern Nevada declined more than in the southern cities. Reno gaming revenue was down over seven percent, while Lake Tahoe gaming revenue was down nearly eighteen percent.
Las Vegas Strip casinos performed relatively well. The casinos along the Las Vegas tourist corridor earned $724.6 million, which represented a modest decline of 2.9% from the $746.2 million in 2022.
Baccarat revenue on the Las Vegas Strip decreased by 50% in March compared to the previous year. However, when excluding baccarat, gaming revenue on the Vegas Strip was actually higher than in 2022.
Baccarat is a high-roller game mostly played at luxury casinos. Despite having fewer tables than a game like blackjack, the amount wagered can have a significant impact on Las Vegas Strip gaming revenue in any given month.
Downtown Las Vegas performed even better and saw an increase in revenue compared to the previous year. The casinos in “old Vegas” won $87.4 million, which was 15% higher than the same period in 2022.
A The state of nevada gaming income slowdown appears inevitable
The gaming revenue slowdown in Nevada may be independent of the overall economy. Gaming revenue in the Silver State has been on a strong upward trend since the peak of the COVID-19 pandemic.
However, the pent-up demand for gambling will eventually slow down, and revenue growth may level off. This is not necessarily a bad thing, as the rapid increase in gaming revenue seen in recent years may reach a plateau.
The Future Challenges Index from the AGA suggests that economic pressures could impact the gaming industry later this year. The index indicates a potential decrease in real economic activity in the gaming sector over the next six months.
Nevada’s casino revenue may have a different trajectory compared to the rest of the country. Las Vegas is a destination filled with activities that attract visitors from the US and around the world, and many of these visitors engage in gambling.
Although the event calendar slowed down in April, it is back in full force in May with music festivals and other attractions. The month ends with Memorial Day Weekend, which is typically one of the busiest times in Las Vegas as the country unofficially starts the summer vacation season.
Looking beyond summer tourism, Las Vegas will host six Raiders games in the second half of the year and the Vegas Grand Prix in November. The F1 race weekend alone is expected to have an economic impact of over $1 billion in Las Vegas.
While there may be a gaming slowdown, casino operators are optimistic about positive developments for Las Vegas as the year progresses.
Walk Nevada wagering report
Nevada sports betting revenue in March reached $43.9 million, marking a 16.8% increase from last year.
However, the total amount wagered by Nevada bettors was lower compared to 2022. The $829.8 million wagered during the month was 3.8% less than last March.
Nevada casinos held 4.3% of the money wagered in March.
The revenue for the month was boosted by betting on March Madness. Bettors wagered $655.6 million on basketball during the month, with approximately 70% of the bets placed on college basketball.
March Madness in Las Vegas starts before the actual 68-team tournament. College basketball betting begins with numerous conference tournaments that take place in Las Vegas. There are even more conference tournaments happening across the country leading up to the NCAA basketball tournament.
The first weekend of March Madness is one of the busiest times in Las Vegas sportsbooks, with 24 games taking place over the four-day weekend.
For the first time ever, Nevada hosted the West regional of the NCAA basketball tournament. Las Vegas will also host the Final Four at Allegiant Stadium in 2028.
The additional March Madness games and Taylor Swift concerts helped boost tourism in Las Vegas for the month. Despite the high number of tourists in Las Vegas, Nevada sports betting apps accounted for only 64% of all wagers in March.
Vegas visitation way up, and it might not exactly slow
The slight dip in gaming revenue in March was not due to a lack of visitors. According to a monthly report from the Las Vegas Convention and Visitors Authority, 3.66 million people visited Las Vegas in March.
Overall, visitation to Las Vegas was up 9.6% compared to last year but down 1.1% compared to 2019 (before the Covid-19 pandemic). The increase was driven by 771,000 attendees at business conventions, representing a significant 56% increase from the previous year.
These business travelers are important for hotel operators, as they pay higher midweek rates compared to leisure travelers seeking more affordable rooms on weekends.
88.3% of Las Vegas hotel rooms were occupied in March, leading to an increase in prices. The average price of hotel rooms in Las Vegas jumped by 40.7% to $213.25 per night.
During various casino operator earnings calls, representatives from Caesars, MGM Resorts, and others expressed a positive outlook for the future. Large events throughout the summer and into the fall are keeping advanced bookings high.
The NFL season will begin in September, with the Raiders hosting eight regular-season home games.
U2’s highly anticipated limited engagement at the MSG Sphere will start in late September and continue into October. In November, the inaugural Las Vegas Grand Prix will take place the weekend after Thanksgiving.
Marc grew up on the mean streets of the South Bronx. He’s the rare combination of a Yankees and Jets fan, which contributes to his occasionally contrarian perspective. Marc is a freelance writer and social media consultant. Writing about steak, alcohol, gambling, and Las Vegas is a challenging job, but someone has to do it.
