Nevada gamblers lost less in May, mid-week casino activity still soft

Wednesday, July 10, 2002 | 10:55 a.m.

CARSON CITY -- Nevada casinos won $838.9 million from gamblers in May, a decrease of .6 percent from a year ago. It was the third month this year the clubs reported lower gross revenue, as the industry continues to recover from the 2001 slowdown.

The Nevada Gaming Control Board said today the gross win from table games fell by 6 percent, but revenue from the slots grew by 2.1 percent.

Frank Streshley, senior research analyst for the board, said the casinos enjoyed a "good Memorial Day weekend -- good but not great." He said the weekend business is getting near-to-above volume but the mid-week play is "still soft."

He said while the volume of business was lower this May, the casinos won a higher than average percentage of the bets. The "hold" from the games was 15.3 percent compared to 14.2 percent of a year ago. And slot "hold" rose from 5.4 percent of a year ago to 5.6 percent this May.

He said he was "happy with the numbers" because this May is being compared to a fairly strong month one year ago, when revenue rose by 5.6 percent.

Streshley said the gross win on baccarat statewide fell 1.3 percent; 21 win rose 4.3 percent; craps fell 28.3 percent; roulette was down 12.6 percent and sports pool revenue rose 12.7 percent.

Win from horse race betting rose for the casinos by 5.4 percent with the Kentucky Derby being held in May.

Win for Megabucks jumped 150.6 percent in May as players chased a big jackpot of $23 million that was won at the end of the month, Streshley said.

But gross revenue from $1 slots fell 4.9 percent; quarters were off 14.7 percent and nickels dropped 11.2 percent.

Gross win is computed before casinos pay taxes and deduct business expenses. So far this year the gaming industry has paid $554.6 million in percentage fees, down 1.8 percent from the first 11 months of the last fiscal year. The Economic Forum, which the state bases its budget on, had predicted an increase of 3.6 percent in gaming tax collections.

Casinos on the Las Vegas Strip posted gross winnings of $428.7 million, down .47 percent. "This compares with a strong May last year, which was up 11.8 percent," said Streshley.

But this was the third month in the first five months that gaming revenues have dipped on the Strip, which was hit hard by the tourism slowdown after the Sept. 11 terrorism.

Game revenue on the Strip fell 7.5 percent. Baccarat was off 3.7 percent; 21 jumped 11.2 percent; craps was off 40.3 percent and roulette declined 15.9 percent.

Slot win rose 6.4 percent at the Strip casinos.

Downtown Las Vegas casinos reported $58.5 million in gross revenue, up .8 percent. This was the second time this year this area has posted an increase. Table winnings fell 9.2 percent, but slot win was up 2 percent.

North Las Vegas casinos reported $17.3 million in gross win, an increase of 7.9 percent. But this compares with May 2001, when revenues were down 26.7 percent. The board said gross revenue from slot machines increased 9.2 percent but game win fell 2.8 percent.

The board said Laughlin clubs won $44.9 million, up .3 percent. This was the second month this year that the casinos have posted positive results. Slot win was off .8 percent but game revenue rose 7.9 percent.

Boulder Strip clubs reported revenues of $55.7 million, down 3.5 percent from a year ago. Streshley said this was the first decline in six months. And this May compared to a 13 percent gain of a year ago. Slot win was off 4.5 percent but table win increased 65 percent. He said unlike the rest of the state, casinos on the Boulder Strip reported higher volume in slots and games but lower "hold" percentages.

Mesquite casinos posted their 15th straight month of increased win. The board said the clubs won $8.9 million, up 5.5 percent. Slot gross revenue rose 3.4 percent and game win jumped 17.7 percent.

Casinos in the balance of Clark County posted $66.7 million in win, down 2.1 percent from a year ago. Slot win was off 2.6 percent but table revenue increased 1.8 percent.

Washoe County casinos reported winning $92.9 million, a decline of 4.9 percent. This was the 13th month in the last 14 that revenues have been lower in Washoe County. Slot win was off 4.3 percent and game win dropped 7.1 percent.

The board said South Lake Tahoe casinos reported $26.7 million in gross revenue, up 3.5 percent. Slot win rose 4.1 percent and gross revenue from the games increased 2.7 percent.

For the 16th straight month, casinos in the Carson Valley area reported higher gross revenues. The board said the clubs won $8.5 million, up 7.5 percent. Slot win rose 8.5 percent but table revenue fell .8 percent.

Elko County registered $19.1 million in casino win, up 3.2 percent. Slot win was up 3.4 percent and game gross revenue rose 3.6 percent.