Nevada May Revenues Tops $1 Billion For 39th Month In A Row

The Nevada Gaming Control Board’s report for May 2024 painted a positive picture overall with statewide gaming revenue reaching $1.32 billion, marking a 2.5% increase from the same period last year. The figure extends Nevada’s remarkable streak of 39 consecutive months with over $1 billion in gaming revenue.

The Las Vegas Strip, which accounts for more than half of the state’s overall gaming revenue, was a significant contributor to this success. Strip resorts reported gaming revenue of $742.5 million in May, a 3.7% jump from the previous year. This upward trend was driven by strong performance in slot machines and table games, rather than relying solely on high-end baccarat play.

Complementing the gaming revenue growth, Nevada also experienced a surge in visitor numbers. May 2024 saw just under 3.66 million visitors to the state, the second-highest monthly total so far this year. This influx of tourists was fueled by events like the Electric Daisy Carnival (EDC) music festival and a nearly 2% increase in convention attendance.

Furthermore, the state’s hotel occupancy rates remained robust, with an average of 86.1% in May. The average daily room rate also saw a 9.1% increase compared to the same period last year, reaching $200.01.

While the Las Vegas Strip dominated the headlines, other regions in Nevada also contributed to the overall gaming revenue growth.

In northern Nevada, Washoe County’s overall gaming revenue remained relatively stable, with a slight dip of less than 1% from the previous year. However, this was driven by a 1% decline in Reno casinos, which was offset by a 2% increase in gaming revenue from properties in Sparks.

South Lake Tahoe casinos, on the other hand, experienced a 9.5% revenue decline, highlighting the diverse performance across different regions within the state.

In southern Nevada, Laughlin casinos reported a more significant 21.4% revenue decrease, which was attributed to a calendar anomaly affecting the collection of slot machine revenue. However, for the first five months of the year, gaming revenue in Laughlin is down a more moderate 6.2%.

The Role of Sports Betting

Sports betting has also been a key contributor to Nevada’s gaming revenue growth. In May 2024, the state’s sportsbooks collected $36 million in revenue, a nearly 20% increase from the same period a year ago. However, total wagers fell by 2.3% to $515.1 million.

Analysts have noted that Strip resort hotel rates have remained relatively steady in recent months, following the “upsized hotel room prices” experienced in the first three months of the year. According to Truist Securities gaming analyst Barry Jonas, room rates across nearly 20 properties operated by Caesars Entertainment and MGM Resorts International are aligning with 2023 prices, ranging from $129 per night to $187 per night in August.

The impending closure of The Mirage, which will remove 3,000 rooms from the Strip’s inventory, may provide an opportunity for operators to increase nightly room rates starting in July. As Jonas suggests, “It’s possible we [may] see rates improve for shorter booking windows soon after (the closure).”

The Las Vegas locals market has also been a significant contributor to the state’s gaming revenue growth, with a nearly 6% increase through the first five months of 2024. Much of this growth has been attributed to the December 2023 opening of the Durango Casino Resort in southwest Las Vegas, which helped drive a 12% gaming revenue increase in the locals market during May.