Nevada casinos register $1.04B win for January

While casinos across America are seeking the formula for attracting millennial players through their doors, the historic El Cortez in downtown Las Vegas is using a tried-and-true formula — reducing minimums on table games and cranking up the drink specials.

The 364-room El Cortez — owned by Bugsy Siegel in the 1940s and ’50s and gaming legend Jackie Gaughan from the 1960s through the early 2000s — has long been a locals favorite, but more recently has become a nighttime millennial hangout with the arrival of the Fremont East district.

The El Cortez has ridden the same wave that has elevated other downtown properties, most recently exemplified by Tuesday’s January gaming win statistics released by the state Gaming Control Board.

The board reported statewide gaming win of $1.04 billion, up 12 percent over January 2016, a Clark County win total up 14.3 percent to $926.2 million and downtown, up 32.1 percent to $55.5 million.

It was the 35th time the state has recorded more than $1 billion in win, a level first achieved in March 2005. The highest win ever came in October 2007 when the state recorded $1.165 billion.

Analysts cautioned that the January percentage increases were high because of the timing of reporting, but the three-month running average shows significant growth in casino win.

For November, December and January, state and Clark County win was up 2.5 percent from the comparable period in 2015-16, the Strip climbed 2.9 percent and downtown Las Vegas soared 7 percent.

“This was obviously a strong month for Clark County but not any kind of record,” Michael Lawton, senior research analyst for the Gaming Control Board’s Tax and License Division, said of January’s numbers by email.

Lawton indicated January’s county win total was just outside of the top 10 highest recorded for the county.

BLENDING OLD AND NEW

To El Cortez, it’s a matter of attracting a nearby and growing demographic with an existing success.

Executive Vice President Alexandra Epstein Gudai, daughter of owner and former Gaughan partner Kenny Epstein and herself a millennial, is comfortable in the role of proposing ideas that bring old-school customers face to face with the new breed of customer that uses El Cortez as a takeoff point or nightcap destination.

“We haven’t strictly geared toward millennials because our core customer is certainly not a millennial,” said Gudai, who has been with the El Cortez for nearly a decade after deciding not to pursue a medical career.

“For decades, we’ve been 75 percent local-based and we’re still local-based for sure,” she said. “We have a definite local following of customers that are here 325-plus days a year. However, we have definitely seen a growth along that millennial demographic and we have tried to work alongside them to keep them inside a little bit longer, to make them feel more welcome here and make them feel more comfortable alongside our core customer.”

THE EL CORTEZ FORMULA

The formula has worked. Here’s how El Cortez is drawing a millennial crowd:

■ Complimentary beer on weekends. While many properties have decreased drink comps, El Cortez brings giant tubs of beer on ice into table-game pits for players in addition to cocktail service on Thursdays, Fridays and Saturdays. The bars on property have happy hours with 2-for-1 drinks and half off draft beer at various times, seven days a week.

■ Low minimums. The blackjack tables have $5 minimums and 3-2 payoffs on blackjacks with single-deck play. Roulette is played with 25-cent chips and $1 minimums and the property has added a double-roulette table that seats 12 at one wheel for a social experience. Another double table is being added.

■ Local events. El Cortez often sponsors some of the big festival events that have made downtown home, including the Vegas StrEATS food truck festival, the Life is Beautiful music festival and a new comedy event. The work of local artists also adorn the walls.

■ Remodeled bar. The property recently renovated its main bar, Ike’s, a tribute to Epstein, whose initials are IKE. It’s a popular watering hole by night and a place for people on laptops by day.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.