April gaming numbers soft

Cy Ryan and David Strow

Monday, June 11, 2001 | 11:13 a.m.

CARSON CITY -- Nevada casinos experienced a soft April, reporting gaming revenues down 1.4 percent from a year ago, the state Gaming Control Board reported today.

Total win statewide, before taxes and business expenses, was $774.2 million, compared to $785.6 million in April 2000.

While slot machine revenue increased by 5.5 percent, or $28 million, the win on table games dipped 14.7 percent, or $39 million. On the Strip, gaming win dropped 4.3 percent to $371.7 million.

"It was a pretty quiet month," said Frank Streshley, senior research analyst for the board. "There were no big boxing events and no major conventions."

He said this April compares to a strong April in 2000, when gaming win jumped 13.6 percent. A major reason for the decline this year, Streshley said, was there was one fewer Saturday in the month.

"The comments from the operators were they were seeing strong convention business but a weakness in the leisure travel business," he said.

Another factor, said Dresdner Kleinwort Wasserstein gaming analyst Todd Jordan, was poor hold on the Strip's table games.

Jordan noted that table game volume -- the total amount of money wagered on table games -- was down just 5 percent, compared to the 19 percent drop in table game win on the Strip.

"It's hard to look at one month and call it a trend," Jordan said. "They're certainly not great results. Vegas won't fall off a cliff, but things will stay sluggish. The comparisons are still pretty difficult through August ... (but) as we move into the fourth quarter, the comparisons should get a lot easier. We should see business pick up (then), assuming the economy doesn't deteriorate further."

The Strip's win declined for the second time in the last three months. While slot win was up 10.2 percent, revenues from tables and sports books fell 18.8 percent. Baccarat was off 10.4 percent; 21 was down 13.4 percent; craps fell 13.4 percent; roulette decreased 21.5 percent and sports betting was off 87.6 percent.

Still, not everyone sees weakness in those numbers.

"The results don't tell the whole picture, in the sense that high-end play was down versus the prior year, in great part due to the timing of events and holidays, but the underlying strength of the market was depicted through strong slot win, indicating your mid-market player continues to visit Las Vegas in large numbers," said Andrew Zarnett, gaming analyst with Deutsche Banc Alex. Brown. "Clearly there's great strength in Las Vegas."

A big reason high-end play is down, Zarnett said, is that companies are showing more "discipline" in chasing marginally profitable high rollers.

"MGM Grand and Mirage are now controlled by the same company, and the Las Vegas Hilton and the Rio have shied away from the high-end in a big way," Zarnett said.

Though Las Vegas continues to show strength, a variety of risks remain, including the rise of California Indian gaming, soaring energy costs, "a malaise about what's new in Las Vegas" and the bankruptcy of National Airlines, Zarnett said.

The Boulder Strip featuring the expanded Sam's Town was one of the two bright spots in Clark County. It reported wins of $52.7 million, up 13.3 percent.

Downtown Las Vegas casinos reported $59.8 million, up 3 percent. This was the sixth straight month of growth. Slot win rose 0.6 percent, and game and table win jumped 10.5 percent, compared with the negative showing on the Strip.

North Las Vegas casinos recorded $17.8 million in gross win, off 3.6 percent as the new Suncoast in Summerlin cut into their business. Laughlin casinos won $48.6 million, down 0.9 percent.