Nevada casino win shows a rare decline

Cy Ryan and David Strow

Thursday, Nov. 9, 2000 | 11:17 a.m.

Nevada casinos reported $788.4 million in winnings in September, down 3.79 percent from the same month of a year ago and ending 30 consecutive months of growth.

While Northern Nevada registered increased gaming win, Clark County took a nosedive.

Frank Streshley, senior research analyst for the state Gaming Control Board, said there are several reasons for the decline in Southern Nevada gaming revenues, which are computed before taxes and business expenses.

This September is compared to a year ago when a record 23.2 percent growth was reported. The Paris hotel-casino opened on the Strip in September 1999. And there were no year-to-year comparisons yet for the Bellagio, Mandalay Bay and Venetian, which had opened in previous months.

In September 1999, Streshley said high-end players came to Las Vegas to attend the De La Hoya-Trinidad fight. And two major conventions -- MAGIC (mens apparel) and the International Gaming Expo that together drew 128,000 people -- were held in September 1999 but their dates were switched this year to other times.

Gaming analysts were echoing that analysis this morning, arguing that the numbers weren't a signal that the state's gaming industry was finally slipping out of a period of record growth.

"The comparison is very difficult," said Todd Jordan, gaming analyst with Wasserstein Perella Securities. "Last year, gaming revenues on the Strip were up more than 40 percent, but that's somewhat misleading, particularly due to (the De La Hoya-Trinidad fight).

"If you go back two years, to 1998, September revenues were $302 million. This year, we're at $384 million. So we're still looking at growth of 27 percent over 1998."

Added Smedes Rose, gaming analyst with Robertson Stephens: "You have a difficult comparison with the opening of Paris a year ago, which had a gangbuster opening."

"But this year you had five weekends in September vs. four a year ago, so that somewhat offsets the (Paris) opening," Rose added.

The control board reported that statewide slot win dropped 1.1 percent and game and table revenues fell 8.7 percent. The total revenues were down $31 million for the month. Streshley pointed out, however, that baccarat revenues dropped by $28.7 million or 53.1 percent, accounting for much of that decline.

If baccarat was excluded from the statewide picture, Streshley said the total win would have dropped only .3 percent.

"(The win decline) is not nearly as negative as it might look," Rose said. "(The drop) is less than 1 percent once you normalize for baccarat, and that's pretty good, I think."

For the first time since August 1998, casinos along the Las Vegas Strip reported lower gross win. The clubs registered $384.5 million, down 9.3 percent, or $39.8 million. In September last year, Strip casinos posted a 40.7 percent increase in revenues.

Slot win in Strip clubs fell 4.9 percent and game and table win was off 13.8 percent. Baccarat declined 53.2 percent or $28.4 million. Excluding the baccarat figure, revenues fell only 3 percent on the Strip.

Downtown Las Vegas casinos reported gross win of $53.6 million, down 5.4 percent, ending seven straight months of increased revenues. Slot win was off 2 percent and game and table win fell 15.3 percent.

North Las Vegas casinos reported winnings of $16.9 million, off 7.1 percent. Slot win declined 8.8 percent and table revenues were off 1.7 percent.

The only bright spot in Clark County was Laughlin, where casinos produced $44.1 million in win, up 1.4 percent. This was the 25th consecutive month of growth. Slot win inched down .1 percent but games revenue rose 9.9 percent.

Clubs along the Boulder Strip produced $45.8 million in revenue during September, down 3.2 percent. Streshley said this is compared to a 16 percent increase in September 1999. Slot revenue fell 6.4 percent and table winnings rose 21.1 percent.

Casinos in Washoe County produced $106.4 million in win, up 8.3 percent. Streshley attributed that to a number of special events such as the Reno Air Races, the balloon races and the Rib Cookoff in Sparks. Slot win rose 9.1 percent and game and table revenues were up 6.4 percent.

South Lake Tahoe casinos produced their seventh straight month of growing revenues. Total win reached $32.2 million or a gain of 14.7 percent. Slot win jumped 13.1 percent and table revenues were up 18.7 percent.

Elko County reported $22.3 million in gaming win, up 9.4 percent. Slot win rose 10.5 percent and game and table play was up 6.1 percent.

Casinos in the Carson Valley area reported gross win of $8.3 million, up 4.8 percent. Slot win rose 4.5 percent and game and table revenue jumped 7.7 percent.