Strip gaming win continues to be hammered by effects of pandemic

The Strip continues to be the hardest-hit market monitored by the Nevada Gaming Control Board, according to figures released Thursday.

Strip gaming win was down 41.6 percent to $348.6 million in February compared with a year ago as policies and directives related to the coronavirus pandemic continued to keep customers away from Nevada’s casinos.

Clark County gaming win — the amount gamblers lost in their wagering — was off 29.6 percent to $631.5 million, and downtown Las Vegas was down 7.1 percent to $51.7 million. Statewide, win was down 25.9 percent to $772.4 million.

The Strip accounted for 91.6 percent of the state’s decrease in February. Last month was also a tough comparison with February 2020, which was a leap year with an extra day in the month, including an extra weekend date on the calendar.

Six state markets monitored by the Control Board showed gains in February, including Mesquite, outlying areas of Clark County, South Lake Tahoe and the Carson Valley area.

A gaming analyst said the Strip gaming win was lower than expected.

Carlo Santarelli, an analyst with the New York office of Deutsche Bank, said his company anticipated that win would be down 34.4 percent with slot handle down 27.1 percent and table volumes off 45.9 percent.

“Baccarat volumes were down 58.6 percent year over year in February, while revenue declined 57.7 percent, as baccarat hold of 11.6 percent was up about 25 basis points year over year and was about 30 basis points above the 2020 average hold of 11.3 percent,” Santarelli said in a report to investors.

Michael Lawton, senior research analyst for the administration division of the Control Board, said baccarat play was materially affected around the Chinese New Year celebration — typically a busy time for Strip casinos — because of the reduction in international travel during the pandemic.

Lawton said sports wagering also was down, despite a record number of bets taken for February.

Sports pools won $31.8 million, down 16.3 percent from a year ago with the amount of money held by sportsbooks at 5.75 percent compared with 7.74 percent last year.

Lawton said sports wagers made with mobile apps won $10.2 million on $316.2 million in wagers, up 44.4 percent compared with last year, holding 3.23 percent. The amount of bets taken accounted for 57 percent of total wagers.

He said he expects a shift in numbers in the March report next month when current numbers will be compared with a period when casinos were closed for 78 days beginning in mid-March 2020.

“We are looking at the start of the pandemic’s impact on gaming activity due to the suspension of gaming activities which occurred on March 17, 2020,” Lawton said.

“March 2020’s total win was down 13.1 percent, totaling $617.9 million,” he said. “In looking at our average win amount since June’s reopening, which is sitting at $744.4 million, I would expect March 2021 to be up significantly over last March.

“Our understanding is that gaming activity is improving due to improved metrics related to COVID-19, capacity limitations being changed from 35 percent to 50 percent and stimulus checks, which are acting as a catalyst to elevated spending by consumers,” Lawton added.

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