Strip win soars 41%

Cy Ryan and Gary Thompson

Tuesday, Nov. 9, 1999 | 11:06 a.m.

The opening of the Paris hotel-casino and the De La Hoya-Trinidad fight in Las Vegas helped push the gambling win in Nevada to a record $819.5 million in September, up 23.1 percent from a year ago, the state Gaming Control Board reported today.

The win on the Las Vegas Strip soared nearly 41 percent, indicating a big increase in the city's hotel room count is being absorbed as more gamblers fly into town.

"It was a very strong month," said Frank Streshley, senior research analyst for the control board, adding the gross revenue surpassed the previous record of $807.2 million set in January this year.

He called it a "rare month" because all of the table games except keno increased. There were both increased play and higher hold percentages for casinos. The win is computed before taxes and business expenses.

For instance, gross winnings on baccarat shot up 128.8 percent or $30.4 million.

The only three areas that posted lackluster results were downtown Las Vegas, where revenues rose only 0.9 percent; South Lake Tahoe, where the win fell by 3.7 percent, and in the Carson Valley where the casino gross win increased by 1.5 percent.

"These may be the best numbers Las Vegas has ever had," said Dave Ehlers, chairman of Las Vegas Investment Advisors Inc. "This is consistent with what one would expect with extensively broadened air service.

"We think there's an 80 percent chance McCarran Airport will report a record 12 percent traffic increase, to 3 million arrivals and departures, in the month of October, and we think there's a 60 percent chance it will post a 15 to 18 percent increase.

"This will be the fifth consecutive monthly double-digit increase in air passenger traffic," he said. "I believe the economy of Southern Nevada is picking up steam."

Ehlers cited an 8.3 percent increase in McCarran passenger traffic for the first quarter, a 10.3 percent rise in the second quarter and a 15.8 percent jump in the third quarter, "proving that as the seats have been added, people are getting on those airplanes and heading for Las Vegas."

This month's casino win results includes winnings from the Bellagio, Paris, Mandalay Bay, the Resort at Summerlin and the Venetian, which were not operating in September 1998.

Streshley said casinos on the Las Vegas Strip won $424.3 million, only $8 million short of the record. The gross revenue amounted to an increase of 40.7 percent from a year ago. Slot win rose 27.9 percent and game and table win jumped 56.2 percent.

Baccarat revenues jumped 127 percent or $30 million on the Strip. The amount wagered on the game rose 53.8 percent and the casinos held 19.8 percent versus 13.4 percent of a year ago. The board said there was a 32 percent increase in the win on 21; a 21.8 percent rise in craps and a 109 percent jump in roulette.

Downtown Las Vegas produced $56.7 million in gross win, up less than $600,000 from a year ago. Slot win was up .94 percent. Table win rose 1.1 percent despite drops of 2.4 percent in 21, 2.8 percent in craps and 3.8 percent in roulette. Streshley said the sports pool in the downtown casinos posted a 73.9 percent gain.

North Las Vegas casinos reported $18.2 million in win, up 18 percent. Slot revenue rose 13.6 percent and game and table win grew 49.4 percent.

Casinos in Laughlin recorded their second month of double digit growth. They registered $43.5 million in win, up 12.9 percent. Slot win grew 14.3 percent and table revenue was up 5.8 percent.

The Boulder Strip casinos produced $47.3 million in winnings, up 16.4 percent. Slot win rose 17.2 percent and game and table win as up 8.1 percent.

Streshley said Washoe County recorded a "modest" growth of 4.7 percent to $98.2 million in casino win. Slot revenue rose 4.2 percent and table win increased by 6.1 percent.

Elko County gaming revenues reached $20.4 million, up 3.7 percent. Slot revenues were up 1.5 percent and game and table win fell by .65 percent.

Carson Valley posted $7.9 million in win, up 1.5 percent. The slot win was down 0.5 percent but table game revenue rose by 20 percent.

South Lake Tahoe casinos reported $28.1 million in win, down about $1 million from a year ago. Table game revenues dropped by 14 percent and slot win rose only 1.64 percent.

Credit Suisse First Boston gaming analyst David Anders said he wasn't surprised gaming win increased because companies such as MGM Grand, Park Place Entertainment and Harrah's Entertainment had already reported "outstanding results."

"But the 40.7 percent increase in Strip win is positive reinforcement that Las Vegas has digested the incremental increase in hotel-casino capacity.

"The fourth quarter is actually running above projections right now, because room rates are strong," Anders said. "And gaming should be strong in the last week in December.

"The real key in investors' minds will be how the first quarter of 2000 shapes up against last year, because that's when investors will become truly convinced that the growth in Las Vegas is sustainable."