Gaming win still weak compared to 2000

Thursday, Dec. 12, 2002 | 11:12 a.m.

CARSON CITY -- Casinos along the Las Vegas Strip won $395.3 million in October, up 10.4 percent from a year ago and the third straight month of increased revenues.

But the amount won was still down .5 percent compared to October 2000.

The state Gaming Control Board today noted that casino win last year in October, the month after 9-11, fell 10.6 percent from October 2000.

The Strip casinos reported the biggest gain statewide this year, but they were also the hardest hit a year ago, said Frank Streshley, senior research analyst for the control board.

The 10.4 percent was the biggest percentage gain since June 2001, when the numbers were up 11.5 percent.

Gov. Kenny Guinn said, "On the surface this month's gaming news sounds good with an increase in gaming win. However in reality our declining gaming tax collections compared to two years ago underscores what I've been saying about losing a year of revenue."

He said, "We need to be growing by 10 percent per month in order to meet the Economic Forum's projection upon which the budget is built -- yet we are behind tax collections of two years ago."

Bill Bible, president of the casinos' lobbying group the Nevada Resort Association, also downplayed the increase from October 2001 to October 2002.

"It's virtually flat," said Bible, referring to the casino win two years ago.

He noted the numbers are flat even though two big casinos have opened since October 2000 -- Green Valley Ranch Station Casino and The Palms.

The board said the tax collections of $232.5 million from casinos during the first five months of this fiscal year are $17.6 million behind the forecast of the Economic Forum.

Wall Street analysts have generally remarked positively on the recovery of Las Vegas since last year's terrorist attacks. While occupancy levels have returned to normal in many cases, room rates remain somewhat depressed. Casino revenues have also been hurt by high-rollers who haven't returned to Las Vegas.

Casino companies' third quarter earnings releases showed recovery from last year but in some cases are still down from two years ago -- a sign that broader economic declines have been at work besides the effect of Sept. 11. Cost-cutting also has played a significant role in earnings increases, they say.

Slot win in the Strip casinos rose 12.5 percent in October compared to the same month of a year ago, the Gaming Board reported today. Table win rose 7.6 percent. Baccarat gross revenue increased 2.3 percent; 21 was up 21.7 percent; craps jumped 26.9 percent and roulette gained 65.5 percent.

Streshley said it appears that some of the high-end players are starting to return to the Strip casinos. The only major event on the Strip in October was the Paul McCartney concert at the MGM Grand, he said.

Statewide, the board said casinos won $807.3 million, up 4.6 percent or $35.7 million from October 2001. Streshley said that compares with October 2001 when gaming win fell by 4.8 percent.

This is the third straight month of increased gaming win statewide, which followed three consecutive months of declining gross revenue.

The board said slot win statewide rose 5 percent and game and table win was up 3.9 percent.

Downtown Las Vegas clubs reported winnings of $57.8 million, down 1.9 percent. This comes after a slight increase of .01 percent in September. Slot win fell 2 percent and game gross revenue was off 1.1 percent.

Total gaming win in North Las Vegas fell 1.8 percent in October to $19.1 million. Slot win was off .1 percent and game and table revenue dropped 16.1 percent.

Casinos in Laughlin reported $45.4 million in gross revenue, up 4.1 percent. Slot win was up 4.4 percent and game and table win rose 2.9 percent.

Streshley said the Boulder Strip casinos posted the strongest market increase compared to October two years ago. Gross win was up 14.7 percent. He said the clubs won $61.2 million this October, up 8.9 percent from a year ago. Slot win rose 7.9 percent and table revenues were up 17.6 percent.

Mesquite casinos reported total win at $9.5 million, up 8.3 percent. Slot win rose 8.7 percent and table revenue jumped 5.7 percent.

Clubs in the balance of Clark County posted win of $66.1 million, down 5.8 percent. Slot win fell 5 percent and table revenue was off 10.1 percent.

The board said clubs in Washoe County won $88.8 million, down 4.7 percent. Winnings by casinos in Washoe County have shown an increase only three times in the past 25 months.

South Shore Lake Tahoe clubs registered $25.8 million in gross revenue, up 1.3 percent. Slot win fell 2.2 percent but table win rose 9.7 percent.

Carson Valley clubs registered a 1.4 percent decline to $8.3 million in win. Slot revenue fell 1.6 percent but game win inched up .6 percent.

Elko-area casinos recorded $19.4 million in gross revenue, up 3.5 percent. Slot win fell 6.3 percent but game revenue rose 5.5 percent.

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