Friday, April 09, 2004
Copyright © Las Vegas Review-Journal

NEVADA ECONOMY: February win finest on record

State gaming revenue $875.9 million for 29-day month, continuing torrid 2004

Crowds cavort during a Super Bowl party Feb. 1 at the Riviera. Nevada's statewide gaming win was nearly $876 million in February, Gaming Control Board data show. Photo by Craig L. Moran/REVIEW-JOURNAL FILE PHOTO. Click image for enlargement. Illustration by Mike Johnson.

Nevada casinos enjoyed an unprecedented two-month run in January and February that resulted in nearly $1.76 billion in gaming revenue, new data released Thursday show.

The state Gaming Control Board's February report revealed statewide casino revenue of nearly $876 million during the 29-day month. That total was up about 15.9 percent compared with February 2002's 28-day total of $756 million and qualified as the best-ever February in Nevada history, Control Board statistical analyst Frank Streshley said Thursday.

Coupled with January's previously reported revenue total of more than $882 million, a 4.4 percent increase, the state's dominant industry got off to a phenomenal start early this year.

"This February is the third-best month ever in terms of monthly gaming win total," Streshley said. "That follows January's $882 million, the second-best month ever.

"The demand for Las Vegas is particularly strong," he added.

Nevada casinos' best month came in January 2001, when statewide casino revenue was a reported $899.8 million.

February's 15.9 percent improvement over the same month a year ago was also the best year-over-year increase since November 1999's jump of 21.9 percent, Streshley added.

After details of January's strong performance were released last month, Streshley said changes in this year's event calendar may have shifted some gaming revenue from one month to another compared with 2003. He worried those schedule changes could lead to inaccurate "apples and oranges" comparisons that would only be balanced once February's figures were released.

For example, this year's Super Bowl took place Feb. 1 vs. Jan. 26 in 2003. Likewise, Chinese New Year shifted from February a year ago to January this year.

Now that both years' two-month totals are in, Streshley said it's evident neither month of 2004 was a fluke.

"We were up 9.8 percent for those two months compared with the same period last year," Streshley said. "Compared to last year, we've got over 3,000 new rooms thanks to new towers at The Venetian and Mandalay Bay and the reopening of the Westin Casuarina (formerly the Maxim). But even though those rooms have been added, the occupancy rates have held their own or are increasing, and we're also seeing an increase in room rates."

In a Thursday research note, Merrill Lynch gaming analyst David Anders said slot and baccarat volume were both up during February, indicating strong overall and high-end demand for Las Vegas casinos.

Clark County enjoyed a 17.9 percent increase in revenue, which was nearly $731.2 million for the month. Strip casino revenue was $444.6 million, up 19.5 percent, while downtown Las Vegas survived the January closure of Binion's Horseshoe and the Castaways to post nearly $57.5 million in February revenue, up 4 percent from a year ago.

North Las Vegas enjoyed its best month ever with $22.5 million, up 20.3 percent, Streshley said, while Washoe County enjoyed just its second monthly revenue increase since Station Casinos in June opened its market-altering Thunder Valley Indian casino near Sacramento, Calif.

"It was a record February for Washoe County," Streshley said of that area's $80.8 million reported revenue, an 8 percent improvement.

Nevada's fiscal year-to-date revenue total, which stretches back to July 1, was approximately $6.59 billion through February, up 3.43 percent compared with the same period of 2002-2003, when $6.37 billion were reported.

The state collected more than $75 million in percentage fees in March based on February's revenue total, up 56.5 percent compared with the year-ago monthly total of $47.9 million.

The Legislature last year increased statewide gaming fees by 8.6 percent effective September 2003, a move that factored into the larger fee total.

In a statement, Gov. Kenny Guinn said February's success provided the state budget with "a modest cushion for the remaining three months of this fiscal year" but added statewide gaming revenue must continue to improve in order to meet the state's forecasted budget requirements.

Through March, the statewide gaming revenue total of $485.3 billion was 3.7 percent more than a forecast issued in May 2003 by the state's Economic Forum. March's collection was 35.3 percent more than the forecast called for, ending a two-month streak in which gaming fees collected failed to meet projected totals.