Vegas casinos enjoy strong win in January

Cy Ryan and David Strow

Thursday, March 8, 2001 | 11:22 a.m.

Casinos along the Las Vegas Strip won a record $496.3 million in January, an increase of 6.5 percent from the year before. But gaming revenues fell in Northern Nevada, the state reported today.

The casino market in Southern Nevada, with the exception of North Las Vegas, enjoyed a good kick off into the new year.

The state Gaming Control Board reported today that statewide the clubs won a record $896.9 million, up 3.5 percent from January of a year ago -- which until now was the highest producing gross revenue month at $867 million.

Frank Streshley, senior research analyst for the board, attributed the showing to a strong New Year's weekend, an $11 million win from the Super Bowl and the Chinese New Year's, which fell in January this year as opposed to February in 2000. He said the casinos in Northern Nevada were hurt by bad weather and there being one less weekend in January than in 2000.

Revenue from baccarat, a game that attracts high rollers, increased 44.4 percent -- adding $25 million in gross revenue.

Gross revenue is computed before taxes and business expenses.

There's a dark cloud however. For the first eight months of this fiscal year, statewide casino percentage tax collections total $357.6 million, down 2.2 percent from the same period of the prior fiscal year. It was predicted that gaming taxes would increase by 5.9 percent. This will probably mean that Gov. Kenny Guinn's budget will have to be trimmed.

The board said that winnings statewide from slot win increased to $515.8 million, up 3 percent and gross revenue from the table games rose 4.6 percent to $375.6 million statewide. Revenues from the 21 games rose 4.2 percent; win from craps dropped 29.6 percent and roulette was up 13.5 percent.

Casinos on the Strip won $30.5 million more this January than a year ago. The $496.3 million win surpasses the previous record of $466 million set in January 2000. Slot win rose 4.5 percent and table win was up 8.5 percent. But baccarat jumped 43.87 percent or an additional $24.8 million in revenue, signaling the high end players were in town during the month.

Clubs in downtown Las Vegas reported revenues of $60.4 million, up only .7 percent. Slot win rose 2.7 percent but table revenue dropped 4.6 percent. The increase in gross revenue this January is compared with a decline in January 2000 of 4.8 percent.

The board said North Las Vegas was the only market in Southern Nevada to register a decline in casino revenues. The clubs reported win at $20 million, down 10.3 percent. Slot machine revenue fell 8.5 percent and the table win dropped 20.7 percent.

Laughlin casinos reported $52.1 million in win, up 4.7 percent. Slot win was up 6.1 percent but game and table revenues fell 1.8 percent.

Clubs along the Boulder Strip posted $56.8 million in revenue, up 8.4 percent. Slot win rose 10.7 percent and revenue from the table games was flat.

Observers offered mixed reactions to the numbers.

"I wouldn't jump up and down and think everything will be fine in 2001," said Andrew Susser, gaming analyst with Banc of America Securities. "I was not surprised by the Strip number, given the fact that Chinese New Year's fell in January this year, and we had a pretty easy (comparison). I don't think these numbers point to any kind of trends."

Susser said the Suncoast, opened near Summerlin in September 2000, may have played a key role in the 10.3 percent decline posted by North Las Vegas casinos in January.

Jeffrey Logsdon, gaming analyst with Gerard Klauer Mattison, took a more optimistic view.

"These are good numbers, especially in light of peoples' on-going obsession about the economy and macroeconomic issues," Logsdon said. "It's a little early to say there aren't going to be any macroeconomic issues, but the industry hasn't been experiencing any sort of decline, as some on Wall Street have thought.

"It's good news. Clearly, Las Vegas is not feeling any sort of meaningful compression in visitation or gaming dollars so far."