Casino win dips slightly after attacks

Cy Ryan and David Strow

Thursday, Nov. 8, 2001 | 10:59 a.m.

In the first gaming win report since the Sept. 11 terrorist attacks, the state Gaming Control Board reported today that Nevada's casinos won $763.6 million from gamblers in September, down just 3.1 percent from September 2000.

The board reported Clark County's gross win, computed before taxes and business expenses, fell to $594.8 million, down 2.3 percent. The Strip was off 5.3 percent to $363.8 million.

Board Senior Research Analyst Frank Streshley said the drop was not as much as many observers had expected. The casinos, he said, had a strong Labor Day weekend and also reported good business on the following weekend before the attacks in New York and Washington D.C.

The comparison was made easier by the fact that September 2000 was an unusually weak month, with state gaming revenues down 3.8 percent and Strip win down 9.4 percent. The state's gaming win was down 7.4 percent from August 2001, and down 11.5 percent on the Strip.

"(The September decline) isn't off the face of the earth," said Larry Klatzkin, gaming analyst with Jeffries & Co. "It could have been worse ... some people were anticipating worse. This is encouraging. I'm definitely pleased by these numbers."

But the numbers don't tell the whole story, Klatzkin said.

"The real hit (from the slowdown) isn't to gaming, it's to the non-gaming business," Klatzkin said. "Room rates are lower, people aren't going to a lot of shows and restaurants, and expenses haven't gone down by the same amount. In Atlantic City, gaming revenue is the only thing you make money on. In Vegas ... you make as much on non-gaming as gaming."

Also, state tax collections from the casinos in the first four months of this fiscal year totaled $182.5 million, down 2.1 percent from the same period of 2000. The Economic Forum forecast the gaming taxes would grow by 4.5 percent this fiscal year. And the state budget is built on that forecast.

Strip casinos played tremendously lucky against high rollers in September. Baccarat win soared 71 percent on the Strip, the result of a 28 percent hold percentage. Normal hold is 17 percent.

If hold in baccarat was normal in September, gaming win on the Strip would have been down 11 percent, said UBS Warburg gaming analyst Robin Farley. Statewide win would have been down 5.6 percent.

"That's the luckiest single month Las Vegas has had in at least the last five years," Farley said. "It is extremely unlikely we'll see high-end luck help the casinos (in coming months), because high-end play from overseas won't be coming back for the next few months."

Slot revenue statewide fell 3.4 percent or $17.5 million. Gross win from blackjack dropped 5.3 percent; craps was down 15.8 percent; roulette dropped 21.7 percent and sports book win declined 19.3 percent. Most sporting events were cancelled the week after Sept. 11.

Slot win on the Strip fell 9 percent and game and table win dropped 1.4 percent. Winnings from blackjack fell 9.5 percent; craps was down 16 percent and roulette fell 25.8 percent.

Downtown Las Vegas registered its 11th straight month of growth. Win there was $54.6 million, up 1.9 percent from a year ago. Slot win rose 1 percent and game and table revenue grew 4.7 percent.

"That's not as much resilience (from the downtown market) as it is easy comparisons," said Dennis Forst, gaming analyst with McDonald Investments. "It hasn't grown at all since 1992."

North Las Vegas casinos had their sixth straight month of decline. Total win fell to $15.6 million, down 7.7 percent. Slot win fell 3.4 percent and game and table win was off 29.2 percent. The declines have come since the opening of the Suncoast casino near Summerlin in September 2000.

Laughlin casinos posted a win of $41.8 million, down 5.4 percent. Seven of the last eight months have been down for Laughlin. The slot win in September fell 3.9 percent and game revenue was off 12.3 percent.

Casinos on the Boulder Strip reported $46.6 million in gross win, up 1.6 percent. Slot win grew 3.4 percent but table revenue dropped 6.5 percent.

Washoe County casinos won $98.2 million, off 7.7 percent. This was the sixth consecutive month of decline. Slot win was off 7.3 percent and game and table win fell 8.8 percent.

"(The declines) are not unexpected," Forst said. "I think it's more important to look at the future. To me, that's ancient history.

"We have a much weaker economy than a year ago, so I don't think it's fair to expect continued growth. I think the Strip is doing well to be up 1 percent year-to-date, with all that's going on."