Nevada annual casino win again declines

Thursday, Feb. 13, 2003 | 11 a.m.

CARSON CITY -- For the second straight year, winnings by Nevada casinos fell -- but the industry showed a mini recovery in the last six months of 2002.

The Nevada Gaming Control Board reported today casinos statewide won $9.4 billon in 2002, down 0.3 percent from 2001, which also registered a decrease of 1.3 percent.

The board also said December statewide casino win was $775.2 million, up 5.9 percent from a year ago. This was the fifth straight month gross revenue, reported before taxes and business expenses, exceeded the same month of 2001.

Frank Streshley, senior research analyst for the board, said there were "signs of a small recovery," during the final six months of the year but he cautioned those months are being compared against the months immediately following Sept. 11, when business fell.

The years of 2001 and 2002 are the only ones in the past 20 years in which gross revenue declined.

The Las Vegas Strip was one of the areas that showed growth in the final six months of the year. But downtown Las Vegas clubs continued in a slump.

Gov. Kenny Guinn said, "Gaming win has now declined two straight calendar years, reflecting the downturn in the economy without any signs of a strong recovery in the near future."

Streshley said the average growth in the casino industry over the last 10 years has been 5 percent.

In 2002 Streshley said there was a gradual increase in slot machine win, but there was "weakness in the games, particularly in high end play." Slot win totaled $6.2 billion, up 1.2 percent. But table win decreased 2.9 percent to $3.1 billon.

Revenue from baccarat fell by 4.9 percent after a decrease of 18.6 percent in 2001, the board said. Baccarat revenue has fallen four of the last five years. And the drop, or amount played, on baccarat was $1.9 billon, the lowest in the last nine years.

The board said gross win from the 21 games fell 4.6 percent after declining 1.6 percent in 2001. Craps was down 8.1 percent and roulette gross win was off 3.5 percent.

The sports pool win fell by 5.2 percent in the year, the fourth time in the last five years of a decline.

The board reported that taxes collected from the casinos for the first seven months of this fiscal year totaled $326.3 million, about $16 million more than the same period for the prior fiscal year. But that is $18.2 million or 5.6 percent below the forecast of the Economic Forum, upon which the state budget is based.

Casinos along the Las Vegas Strip reported $4.6 billion in gross win for 2002, down 1 percent from 2001, which registered a 2.1 percent decline. The board said total win on the Strip declined 6.9 percent in the first six months, but grew 5.5 percent second six months.

Strip casinos account for 49.3 percent of the statewide win, down slightly from 49.6 percent of last year. Streshley said the Strip was the hardest hit by the downturn after Sept. 11.

Slot win on the Strip grew 1.9 percent but table revenue fell 4.1 percent.

Downtown Las Vegas casinos reported $656.6 million in gross win, down 3.9 percent from the previous year. The clubs in "Glitter Gulch" had a 1.4 percent gain in revenue in 2001.

The board said Laughlin revenues reached $551.2 million, up 1.1 percent from the previous year; Boulder Strip clubs had $665.6 million in gross win, up 8.4 percent from the previous year; North Las Vegas casinos posted $210 million in win, down 4 percent; Mesquite clubs posted $109.1 million, up 7.2 percent and the balance of Clark County had $790.6 million in gross gaming win, up 1.6 percent.

Casinos in Washoe County won $1 billion, down 3.8 percent from 2001; South Shore clubs posted a 2.4 percent gain to $336.4 million; Carson Valley casinos had $97.1 million in gross win, up 4.2 percent and Elko County clubs won $228.3 million in 2002, up 2.7 percent.

In December, Las Vegas Strip clubs won $382.1 million, up 3 percent from December 2001.

Downtown clubs, according to the board, registered $52.8 million, down 0.9 percent from December 2001. It was the sixth time in the last seven months that revenues have been lower in the downtown Las Vegas area.

After two straight months of declines, North Las Vegas casinos rebounded with a 19.6 percent gain to $19.5 million.

Laughlin clubs reported $41.1 million in revenue up 6.5 percent.

The gross win in Boulder Strip casinos jumped by 30.6 percent in December to $65.8 million.

Gaming in Mesquite rose 14.1 percent to $8.5 million. And the balance of Clark County jumped 22.4 percent, to $72.3 million.

The board reported Washoe County casinos grossed $72.4 million in December, a decline of 5.9 percent. This was the fourth decline in the last six months.

Gross win from South Lake Tahoe casinos rose to $26.1 million, up 3.3 percent. Elko clubs in December reported $16.2 million, up 2.8 percent from a year ago. Gross gaming revenue in Carson Valley rose 3.8 percent to $8 million.