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Saturday, February 24, 2001
Copyright © Las Vegas Review-Journal

GAMING REVENUE: Tribes surpass Nevada in winnings

Estimates have Silver State slipping to third as riverboat casinos continue to grow

The Nevada casino industry last year lost its position as the top revenue producing gaming market in the country when its $9.6 billion in winnings were surpassed by the $9.9 billion won by tribal casinos.

That trend is expected to continue this year, as the U.S. riverboat market surpasses Nevada's projected 2001 casino win figure, according to projections released Friday by the investment banking firm of Merrill Lynch.

Riverboat gaming revenue is projected to grow by 6 percent this year, reaching $9.9 billion, while Nevada winnings are expected to increase 2 percent to $9.8 billion.

Merrill Lynch estimates that tribal casino revenues will grow by 29 percent this year to $12.2 billion.

Merrill Lynch financial analyst David Anders emphasized that the report's tribal gaming numbers are estimates.

"The (gaming) pie is getting bigger, and it's obvious financing (to build new and bigger casinos) is becoming available in markets with virtual monopolies and limited competition," Nevada Gaming Control Board Chairman Dennis Neilander said of the trend.

If the tribal and riverboat figures are divided into geographic markets scattered about the United States, Nevada's total far outdistances the other jurisdictions.

Strip casinos won $4.9 billion and Atlantic City casinos earned $4.3 billion last year, while Mississippi with $2.7 billion in casino winnings generated the largest revenues of all riverboat states.