2000 Nevada gaming win up 6.4%

Cy Ryan and David Strow

Monday, Feb. 12, 2001 | 11:22 a.m.

Nevada casinos won $9.6 billion in 2000, a 6.4 percent increase over the prior year, the state Gaming Control Board reported today.

But the growth rate is smaller than the 15.9 percent recorded in 1999, when several major casinos opened along the Las Vegas Strip.

Frank Streshley, senior research analyst for the board, said the gaming revenues jumped by 9 percent in the first six months of the year but the growth slowed to 3.1 percent in the second half of the year. That's when "apple to apple" comparisons were being made with the new casinos that opened in 1999.

Streshley said that 79.9 percent of the gross revenue, computed before business expenses and taxes, come from Clark County. In 1990, Clark County accounted for 74.8 percent of the market, showing the growing importance of Southern Nevada to the state's revenue picture.

In the year-to-year comparison, casinos along the Las Vegas Strip posted a gain of 7 percent to $4.8 billion. In 1999, the growth was 17.8 percent. And the average growth rate for the last ten years was 6.6 percent. The Strip accounts for 50 percent of the state gaming revenue.

Downtown Las Vegas recorded $673.7 million in gross win last year, up 1 percent. Streshley said this was only the third time in the last 10 years that the downtown clubs posted higher revenues than the year before. The average growth rate for the past 10 years has been zero. Downtown accounts for 7 percent of the state's gaming win.

The board reported clubs in Laughlin won $559.6 million, up 6.9 percent for the year 2000. The growth rate in 1999 was 8.3 percent. This was the third straight year where win increased after four consecutive years of decline. The average growth rate is 3.6 percent for 10 years.

The Boulder Strip clubs won $599.6 million, up 6.9 percent. That compares with 9.5 percent in 1999. The average growth rate for the past 10 years is 15.8 percent.

Casinos in North Las Vegas posted $235.9 million in win, up 6.2 percent. Streshley said this was the first single digit increase after five consecutive years of double digit growth. The 10-year average growth was 22.7 percent.

The board said win in Washoe County casinos reached $1.1 billion, up 6.2 percent. The growth rate in 1999 was 4.8 percent. Washoe County now contributes 11.9 percent of the total state win, down from 14.9 percent of in 1990.

South Shore Lake Tahoe clubs registered $352.6 million, up 7.5 percent -- its strongest growth in the last ten years. In 1999, it was up 6.3 percent. But its share of the market has declined from 6.2 percent in 1990 to 3.7 percent in 2000.

Carson Valley area casinos won $89.9 million, up 2.2 percent. That compares with a 8.7 percent increase in 1999. Average growth for the ten years was 4.9 percent.

Elko County clubs posted $234.7 million in win, up 8.2 percent. That compares with 4.8 percent in 1999. The average growth rate for the past ten years is 2.4 percent.

The board said casinos statewide in December won $794 million, up 5.7 percent. Streshley the clubs reported good business in the week between Christmas and New Year's.

Strip casinos reported $428.5 million in win, up 9 percent. Downtown Las Vegas casinos posted $52.2 million in win, an increase of 0.8 percent.

Those numbers continued a see-saw pattern for gaming win on the Strip. September and November 2000 were down from the year-ago periods, while October was up slightly.

"For the most part, companies have already announced earnings, so the markets won't react much (to the win numbers)," said Todd Jordan, gaming analyst with Wasserstein Perella Securities. "On an absolute basis, topping 14 percent (growth in December 1999) by 9 percent is pretty good."

Jordan said trends look strong for January. "The comparisons could get tougher in February, March and April," he said.

Most of the win increase on the Strip was generated by a 13 percent increase in table game revenue in December, Jordan said, helped by a stronger-than-normal hold percentage. By comparison, hold percentage declined on slots, though drop increased 11 percent.

"It looks like slots appear stronger than they actually were, and table games were the reverse," Jordan said.

Robin Farley, gaming analyst with UBS Warburg, pointed out that December's win was helped by a quirk of the calendar. New Year's weekend 2000 was not reported in the December 1999 numbers, while the weekend of New Year's 2001 was included in December 2000's figures.

"You would expect with the New Year's weekend in the month, you would have had to have grown over the prior year," Farley said. "This doesn't necessarily change the (slowing) trend we've seen in September, October and November."

The board said North Las Vegas clubs registered a 16.5 percent decline in revenues to $15.5 million. But that is compared to a 16 percent increase win in December of 1999.

Laughlin clubs recorded a 5 percent increase to $40.5 million in gross revenue. Boulder Strip casinos registered a 9.5 percent decline in win to $45.5 million.

The board said Washoe County clubs grew 9 percent in December to $89.5 million; South Lake Tahoe was up 6.1 percent to $28.3 million; Elko County jumped 10.9 percent to $16.9 million and Carson Valley fell 5.5 percent to $6.9 percent in December.

In the year-to-year comparison, win from the slot machines increased by 7 percent statewide and game and table revenue rose by 5.4 percent, the board reported.

Slot win accounted for 64.5 percent of total statewide revenue. That's 6.5 percent greater than 10 years ago.

The board said win from blackjack increased by 3.1 percent in 2000; baccarat gross revenue fell by 2.3 percent; win from craps grew 8 percent and roulette increased 3.5 percent.

Win from sports pool activity increased by 13.4 percent last year compared to 1999. But gross revenue from race books fell 0.1 percent last year.