Nevada Gaming Sees Strong Growth in September

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Nevada’s nonrestricted gaming licensees reported a total “gaming win” of $1,059,291,018 for the month of September 2019, according to the state’s Gaming Control Board. This amounts to a 6.83% increase compared to September 2018, when licensees reported a gaming win of $991,600,256. For the fiscal year (July 1, 2019 through September 30, 2019), gaming win has increased 4.68%.

In Southern Nevada, Downtown led the way with a 19.89% increase in gaming win over the year. North Las Vegas and the Boulder Strip also saw double-digit gains, while the Strip posted a solid 7% growth. Mesquite’s 1.54% increase was the smallest for the region in September. Our friends at Deutsche Bank provide some further analysis in Southern Nevada, showing Baccarat and slots were driving Strip gains:

 

September LV Strip Revs: +7.0% y/y vs DB Estimate +5.4%

3Q19 LV Strip Revs: +5.8% y/y

September LV Locals Revs: +9.6% y/y

3Q19 LV Locals Revs: +3.0% y/y

 

Strip Slots:

Slot Revs: +7.5%

Slot Handle: +2.2%

Slot Hold: +43 bps

 

Strip Baccarat:

Baccarat Revs: +55.7%

Baccarat Drop: -22.9%

Baccarat Hold: +1,010 bps (20.0% versus hold of 9.9% in September, 2018 and an LTM average of ~12.7%)

Strip Non-Baccarat Tables:

Non-Baccarat Table Revs: -11.4%

Non-Baccarat Table Drop: -10.6%

Non-Baccarat Table Hold: -13 bps

 

In Northern Nevada, the picture was different. South Lake Tahoe saw a 2.49% gain, while the north shore saw a more modest 0.97% gain. All of the other regions saw contraction, with Reno’s 4.24% loss being the largest.

 

The State collected $66,351,356 in percentage fees during the month of October 2019, based upon the taxable revenues generated in September 2019. This represents a 21.48% (or $11,732,342) increase compared to the prior year’s October, when percentage fee collections were $54,619,014.