Nevada’s June Gambling Revenues Hit Another Slight Downturn, Tourism Up

Article ByDavid Weir

July 31, 2023

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Posted in: Nevada Gambling News, US Casino News, US Gambling News

In June, Nevada’s casino industry experienced a minor decline in revenues, according to the latest figures from state regulator the Nevada Gaming Control Board.

The state’s casinos, including those on the Las Vegas Strip, generated more than $1.24 billion during June 2023. That marks a 2.4% decline compared to the same period in 2022, and also down 3.1% on May’s $1.28 billion revenues.

Despite those declines, June was still the 28th consecutive month that Nevada’s gaming revenue has exceeded $1 billion. It is also the 10th-highest total in state history.

The Gaming Control Board had anticipated challenging year-over-year comparisons due to the record-breaking revenue highs achieved by the gaming industry in 2022. Over the past four months, Nevada casinos have recorded year-on-year revenue decreases in three of them.

Las Vegas Strip casinos were not immune to this trend in June. Their gaming revenue of $727.3 million represented a 1% decline from 2022, primarily driven by a 29% decrease in baccarat revenue. However, if the baccarat total was removed from the statewide number, gaming revenue would have increased by 1%.

These numbers reflect a wider trend of strong performance but slowing growth among the U.S gambling market in 2023, as reported recently by the American Gaming Association.

Northern Nevada Markets Show Resilience

While the Las Vegas Strip casinos in Clark County experienced revenue falls overall, several Northern Nevada casino markets continued to show resilience.

Washoe County, for instance, grew its gaming revenue by 10% in June to $94.2 million, and Reno casino revenue was up 12.5% to $69 million. Slot machine revenue was up 4% for the month in Washoe County, while Reno slot revenue saw an almost 14% increase.

Despite the dip in June, the first six months of 2023 have seen statewide gaming revenue 3.6% ahead of last year’s record $14.8 billion. Strip revenue is up 6.2%, while downtown casinos are up 4.1%. Even though they were impressive in June, Washoe County casinos are down 1.6%, and Reno casinos are down 2.6% for the year.

Sportsbooks Performance

On the other hand, Nevada sportsbooks collected $9.5 million in revenue during June, a decline of 60.1% compared to a year ago.

The books held less than 2% of all wagers compared to a nearly 4.9% hold last June. Total handle for sportsbooks was $479 million, which was down 2.3% from June 2022.

This downswing in hold could be attributed to Las Vegas’ own Golden Knights, whose upset winning run in June’s NHL Stanley Cup playoff tournament cost the city’s retail sportsbooks some $6.6 million on the hockey market.

Bets placed on mobile apps accounted for 67.4% of all wagers in Nevada, which is a lower figure than in most states nationally. That’s due to the famous Las Vegas casinos destination retail presence.

Big Ticket Draws

Nevada’s gambling operators might be facing a slowdown, but visitors are still flocking to Las Vegas in ever growing numbers. The Las Vegas Convention and Visitors Authority (LVCVA) recorded more than 3.4 million visitors to the city in June, marking a 3.1% increase year-on-year.

Over the first six months of 2023, more than 20.3 million people visited Las Vegas, a 9.4% increase from 2022’s total. Hotel occupancy was at 85.5% during the month, including 90.2% on weekends. The average daily room rate was $165.21 a night, a 5.3% increase from June 2022.

Nevada can also look forward to several big ticket events in Las Vegas over the coming year. That could boost visitation further and potentially impact gambling revenues significantly.

Lucrative Formula 1 Grand Prix race attendants will be visiting the city in November, with the city laying on more private jet parking space for well-heeled international attendees.

Sin City also looks forward to hosting Super Bowl LVIII at the Allegiant Stadium in February 2024, and on June 4, the giant new Las Vegas Sphere project debuted its impressive, high-tech light show capabilities.

The record tourism numbers, despite a declining trend emerging for gambling revenues, were influential earlier this year in LVCVA head Steve Hill being granted a significant pay raise.