Strip casino win was strong in March

Cy Ryan and David Strow

Wednesday, May 9, 2001 | 11:04 a.m.

Strong business in Las Vegas Strip casinos pushed Nevada's gaming win to $858 million in March, the third highest revenue month in history.

The state Gaming Control Board reported today that the win, computed before taxes and business expenses, grew 2.5 percent statewide and 4.9 percent on the Strip. In March of 2000 an 11.8 percent statewide increase was registered.

"The Strip was very strong," said Frank Streshley, senior research analyst for the board. There were three major fights, NASCAR races, an extra Saturday and strong convention business in Clark County, he said.

The $858 million in statewide win is surpassed only by $897 million in January this year and $866 million in January 2000.

Though the increase is a bit of good news in an environment of growing uncertainty about the outlook for the gaming industry, it is anticlimatic. Most major gaming companies have already reported their earnings for the quarter ending March 31, and most posted stronger than expected results. Only one major casino operator, Mandalay Resort Group, has yet to report its results. It has said it will easily beat earnings estimates.

Based on those strong results, analyst Todd Jordan of Dresdner Kleinwort Wasserstein said he'd expected a bigger increase in March 2001.

"Quite frankly, I'm a little disappointed," Jordan said. "I thought they'd be better, but the good news is that most companies have already reported their earnings ... (this report) is not that big of a deal."

A record slot win of $557.6 million surpassed the $555.7 million in March last year. Streshley said players dropped a record $10.6 billion into the slot machines, surpassing July 2000, which registered $10.4 billion.

Game and table win rose by 7.2 percent statewide. Baccarat revenue increased 7.3 percent, blackjack winnings jumped 10.6 percent and craps fell by 6.6 percent.

Streshley also said the state collected a record $68.6 million in taxes, up from the previous mark of $65 million set in March last year.

The March performance rebounded from February, when statewide casinos reported gross revenue dropped by 7.7 percent.

Winnings at Las Vegas Strip clubs increased 4.9 percent to $434.4 million. The casinos produced a record slot win of $222.3 million, surpassing March of 2000 -- $216.2 million.

Game and table revenue rose 7.5 percent at Strip casinos. Baccarat revenue inched up 3.2 percent; 21 rose 12.5 percent; craps fell 5.3 percent, but roulette jumped 27.9 percent.

But those numbers aren't yet being impacted by one of the big threats to Las Vegas' gaming industry, the emergence of Indian gaming in California, said CIBC World Markets gaming analyst William Schmitt.

"March doesn't reflect the Pala Tribe (new casino near San Diego) ... so I don't think you've seen the full impact of these new Indian casinos in California. With the economy, we're already seeing an impact in some other industries. Right now, Vegas is benefitting from a pretty vibrant convention business, which is holding them up. I don't know how long that can hold them up, if higher margin (convention) travelers back off on their plans."

Jordan shared this cautious outlook.

"The real problem is going to be when we get into the summer months, and the convention business is down a bit," Jordan said. "That's when we'll see a more profound effect of the economy on the numbers."

Downtown Las Vegas clubs won $62.6 million, up 1.4 percent. But the slot win fell by 1 percent while revenue from the games rose 9 percent.

The board reported North Las Vegas casinos had winnings of $21.4 million, up 7.8 percent, reversing a downward trend triggered by the opening of the Suncoast hotel-casino in Summerlin last September. Slot win rose 11.8 percent, but game and table revenues fell 13.7 percent.

Laughlin casinos reported $54.6 million in gross revenue, down 2.8 percent. Slot win fell 3.2 percent and table revenue was off .3 percent

The board said clubs along the Boulder Strip had an off month. Win fell to $49.9 million, down 11.9 percent. Slot revenues dropped by 14.6 percent, but table winnings rose by 9 percent.

Washoe County clubs posted $94.9 million in winnings, up 1 percent from a year ago. Slot win was up .7 percent and game revenue inched up 2.3 percent.

South Lake Tahoe had $26.1 million in win, down 2.9 percent. Slot win decreased 4.8 percent, and game and table revenues were off .3 percent.

Elko County clubs registered $22.9 million, down 3 percent from March 2000. Slot win fell 3.7 percent and game and table win was off by .6 percent.

Carson Valley casinos posted a $7.5 million win for March, up 4.4 percent from a year ago. Slot win was up 4.1 percent, and game and table win rose 7.1 percent.