Gaming win rises 13.9 % in April

Cy Ryan and David Strow

Thursday, June 8, 2000 | 11:09 a.m.

Nevada casinos won $785.6 million from gamblers in April, a 13.9 percent increase and the third consecutive month the industry posted double digit gains.

Stronger still were gains on the Las Vegas Strip, where win rose 19 percent to $388.5 million.

"It was another good month," said Frank Streshley, senior research analyst for the state Gaming Control Board, which released the figures today.

Gaming industry analysts had expected a strong month from Las Vegas, but found the big jump especially encouraging because some of the Strip's largest casinos are coming up on their one-year anniversaries. Bellagio passed the one-year mark last October, while Mandalay Bay passed it in March.

That means the growth numbers are relying less and less on entirely new capacity being added to the market, and better reflect growth, said Prudential Securities analyst Joe Coccimiglio.

"That's why April is impressive, because Mandalay Bay was there in April 1999 and 2000, and you still saw that growth," Coccimiglio said. "The next step will be when we get past June, when we'll be lapping the Venetian. It'll get tougher to grow in the second half of the year."

Lehman Bros.' gaming analyst Stuart Linde also warned a slowdown may be coming in the latter half of the year -- currently, he projects visitor growth will slow to 3 percent on the Strip.

"The Aladdin's going to open (in August), so there will be more capacity in the market," Linde said. "You could see less (visitor) growth, more pressure from California (tribal casinos), a slower (U.S.) economy, less disposable, easy income from the stock market."

However, Linde said Las Vegas properties should continue to be boosted by strong growth in convention business.

Contributing to the strong performance was heavy betting on table games, the opening of the baseball season and the NBA playoffs. Streshley said another key factor was there was an extra weekend this April, compared to a year ago.

Eight of the last 12 months have posted double digit increases in gross revenue, computed before business expenses and taxes paid by the clubs. It was also the 26th straight month of increased revenues for the industry.

The only soft spot statewide was the Boulder Strip, where gross win fell by .16 percent.

Streshley said winnings from games and tables rose by 26.4 percent statewide with baccarat leading the way, up 55.1 percent. Blackjack win rose 8.7 percent, craps jumped 47.3 percent and roulette increased 7.5 percent.

Slot machine winnings grew by 8.5 percent. Leading the way were the nickel slot machines, where winnings increased by 33.5 percent or $29.9 million. Revenue from the $1 slots grew by 3.6 percent but winnings from the 25 cent machines fell 1.9 percent.

Gross win from sports wagering was up 128 percent. Baseball betting grew 56.3 percent and basketball skyrocketed 9,387 percent.

"It was a strong month with the NBA playoffs," said Streshley.

There were no special events, such as major boxing matches, to draw visitors during the month, he said. But the extra weekend accounted for a large part of the strong showing.

On the Strip, slot win rose 6.8 percent but the gross revenue from the games jumped 34.9 percent or $50 million. Leading the way was baccarat, up 56.9 percent or $13.7 million.

The control board said casinos on the Strip registered a 13.3 percent gain in 21 revenue; a 71.3 percent jump in craps and a 7.9 percent rise in roulette. The sports pool gross revenue grew by 130.8 percent.

Downtown Las Vegas casinos posted a third straight month of increased win, reporting revenues of $58.1 million, up 2.9 percent. Slot win rose 4.8 percent but game and table revenue fell by 4.5 percent. Winnings from the craps tables alone were down 33.2 percent.

After a poor March, clubs in North Las Vegas rebounded in April, reporting $18.5 million in winnings, up 5.2 percent. In March the gross revenue fell 4.9 percent. The board said slot win in April rose 8.6 percent but game and table win fell by 14.1 percent.

The board said casinos in Laughlin won $49.1 million, or a 9 percent increase over a year ago. Slot win was up 8.1 percent and game and table revenue jumped 15.9 percent.

Boulder Strip casinos posted a win of $46.3 million, about $80,000 less than a year ago. Table revenues dropped 5.2 percent and slot win increased only .04 percent.

Washoe County clubs posted their third highest win on record with $98.7 million, up 18.4 percent. Streshley said good weather and the National Bowling Tournament for women pushed mid-week business up. It was the 12th consecutive month of growth for clubs in Washoe County. Slot win jumped 19.7 percent and game and table revenues were up 15.1 percent.

South Lake Tahoe registered its second month of growth with casinos winning $25 million, an increase of 25.7 percent. Slot win jumped 27.3 percent and table revenue rose 23.5 percent.

The board said Elko County clubs were up 8.8 percent to $19.8 million. Slot win increased 8.4 percent and game revenues rose 10.4 percent.

Carson Valley casinos reported revenues of $7 million, up 4 percent. Slot revenues increased 4.7 percent but game and table win dropped 1.2 percent.