Wednesday, October 13, 2004
Copyright © Las Vegas Review-Journal

GAMING REVENUE: Record August win for casinos

$905 million won tops record set in 2002, ends two months of declines

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Nevada casinos recorded their best-ever August, winning $905.1 million for an 11.2 percent increase over the same month a year ago, the state Gaming Control Board reported Tuesday.

Wall Street analysts welcomed the increase after declines in June and July, and said the slowdown in local economic growth appears to have passed.

Eric Hausler, gaming analyst for Susquehanna Financial Group, said the statistics were difficult to interpret because August had a fifth weekend period, but Labor Day weekend shifted to September after being in August last year.

Moreover, August 2003 with a win of $813.7 million was particularly weak, with the statewide win down 10.4 percent compared with a year earlier, he said.

"You really need to look at the whole quarter to get an idea of how well Las Vegas is doing. Growth has been slower than it was in the first two quarters, but it still shows the trends are fairly strong and the deceleration from earlier (this summer) seems to have passed," Hausler said.

Control board statistical analyst Frank Streshley said August's statewide win topped the previous record of $839.5 million in 2002.

He took issue, however, with analysts' claims that the deceleration in the economy has ended, explaining that to smooth out shifts in the calendar, it is important to look at the volume of play in Nevada casinos.

On that score, coin-in play in slot machines was only up 0.3 percent in August compared with July and the volume of play at table games was down 0.3 percent, Streshley said.

"Volume was not as strong as we hoped. If you look at a combination of the two months -- July and August -- the statewide (win) was up 4.8 percent and on the Strip up 3.3 percent," he said.

Still, Streshley said there is little reason for concern.

The Men's Apparel Guild in California met in August last year, but will be part of September's numbers this year. September will also benefit from having five weekends, compared with four in August and July, Streshley said.

Joe Greff, gaming analyst at Fulcrum Global Partners, an independent Wall Street investment research firm, said August growth in the Las Vegas locals market, particularly slot machines and poker, was impressive, despite baccarat taking a seasonal break.

Statewide, baccarat winnings in August were $27.2 million, down 18 percent, while blackjack winnings dropped to $98.4 million, a 13 percent decrease. Craps winnings were up 2 percent at $32.5 million. Slot winnings were up 21.9 percent for a total win of $641.3 million, helping boost North Las Vegas casinos' win total to $25.25 million, a 52.2 percent increase over last August.

"The numbers in general were in line with expectations and we expect September to be stronger," he said.

The state collected $59.5 million in September, based on taxable revenues generated in August, up 8.6 percent from $54.8 million the month before.

Fiscal year to date, since July, the state has collected $163.2 million, up 6.5 percent from $153.3 million at this point in 2003.