Wednesday, January 12, 2005
Copyright © Las Vegas Review-Journal
NEVADA ECONOMY: Casinos showing big gains
November revenue jumps despite loss of Comdex computer show
By HOWARD STUTZ
GAMING WIRE
Nevada casinos won nearly 13 percent more money from gamblers in November even though the giant Comdex computer trade show in Las Vegas was canceled and the month had two fewer weekend days.
The state's total gaming win -- revenues collected by casinos -- was $862.1 million, up 12.9 percent from the previous November.
Clark County casinos led the way with reported revenues of $720.4 million, almost 14.1 percent higher than the previous year. Strip casinos recorded a 9.3 percent increase, winning $423.9 million from gamblers during the month.
Analysts said the strong month for the state -- every major casino jurisdiction except Sparks showed an increase -- points toward a continuing vibrant market, especially in Las Vegas, where visitor volume remains high and the weak American dollar has lured foreign visitors.
"From most accounts, we expected November to show some increase from the year before, but the double-digit jump shows the strength of tourism," said Frank Streshley, senior research analyst for the Gaming Control Board. "We had an issue with the calendar where there were two less weekend days than in 2003, and Las Vegas didn't have Comdex for the first time in quite a while. Still, it was a very strong month on the Strip."
Marc Falcone, gaming analyst for Deutsche Bank, said the lack of Comdex may have helped Strip gaming numbers.
The computer trade show had been held in Las Vegas every November since 1979. Show attendance peaked in 1998 with more than 220,000 delegates. After attendance fell because of the bust of the dot-com bubble and the events of Sept. 11, 2001, show producers in June canceled the event for 2004.
Still, the four-month window allowed resort operators to fill rooms with more free and independent travelers who brought fatter gambling bankrolls to town, Falcone said,
"There has always been the debate as to whether Comdex was good for the city because the delegates didn't seem to gamble much," Falcone said. "It looks like the resorts were able to fill the rooms at a higher rate with customers that were better players and better for the casinos."
Statewide, the win for slot machines during the month was up 22.3 percent, offsetting a 6.7 percent slump in the win for table games. Sports book operators statewide suffered the biggest losses, dropping $26 million during the month. Having one less weekend also contributed to the loss. Gamblers cashing winning tickets on bets involving the NFL was the primary reason for the drop.
"The last time I remember the books taking such a huge loss on the NFL was in October of 1992," said Vic Salerno, chief executive officer of American Wagering, which operates 58 Leroy's race and sports books throughout the state. "The Colts, Eagles, Patriots and Steelers were all heavy favorites every weekend and the customers hit the books hard betting on those teams. But, they probably went out there and put that money back into the casino in other ways."
Major boxing cards on successive Saturdays -- Winky Wright vs. Shane Mosley at the Mandalay Bay on Nov. 20 and Erik Morales vs. Marco Antonio Barrera at the MGM Grand on Nov. 27 -- helped drive high-end play during the month.
"We would consider them more midrange fights, but they were enough to help bring in customers to the Las Vegas casinos during a key time," Streshley said.
Falcone said 2004 had been previewed as potentially flat growth for Nevada casino revenues because there were no major casino openings or major expansions to increase room capacity. The numbers, however, dash that theory.
"What was not supposed to be a good year is turning out to be a record year for all tourism figures, including revenues and visitor volume," Falcone said. "The first part of 2005, with the opening of Wynn Las Vegas in April, should factor into those totals."
Laughlin, Streshley said, showed its 10th straight month of positive growth, fending off competition from American Indian casinos in neighboring California. Gaming win there rose by 6.6 percent, with casinos collecting $241.4 million in the first 11 months of 2004, an 8.7 percent increase.
Also during the month, downtown Las Vegas casinos increased their gaming win 10.2 percent, while North Las Vegas casinos were up 24.9 percent. Casinos on the Boulder Strip were up 40.6 percent in November.
In Northern Nevada, Reno casinos reported a 3.8 percent rise. Sparks casinos were down 0.4 percent. Stateline casinos on Lake Tahoe's south shore were up 5 percent.
Streshley said the positive numbers for Reno and Stateline were surprising given the fewer weekend days plus storms during the Thanksgiving holiday.
The $862.1 million statewide win during November included $615.5 million from slot machines and $237.8 million from table games.
Games that produced the most revenue were blackjack at $96.8 million, up 12.2 percent; craps, $35 million, up 19.4 percent; and baccarat, $21.8 million, up 18.5 percent. Poker games won $8.8 million, up 52 percent; and sports betting operations lost about $1 million, down 103 percent.
Slot revenues included $186.5 million from multidenominational slots, up about 90 percent. Dollar slots won $97.6 million, up 11.1 percent; quarter slots won $140.7 million, down 0.2 percent; and nickel slots won $92.2 million, down 9.6 percent.
