LVCVA says locals spending more on gambling

Monday, Feb. 24, 2003 | 11:09 a.m.

Research by the Las Vegas Convention and Visitors Authority shows that local gamblers spent more over the past two years than in the previous biennium.

The increase was likely driven by the addition of three casinos catering to locals and is a sign that new neighborhood properties drive additional demand for gambling, experts say.

The jump may also be because of more aggressive marketing to locals by Las Vegas Strip casinos after Sept. 11, they say.

An LVCVA survey of 1,200 local gamblers found they budgeted an estimated $3.3 million on legalized gambling per year during 2001 and 2002. That's up from $2.5 million budgeted by another group of surveyed gamblers in 1999 and 2000.

The survey, released this month, is based on random telephone interviews with people who were contacted in batches of 300 in August and November 2001 and in February and May 2002. The prior survey was conducted in August and November 1999 and in February and May 2000.

The figures take into account average daily budgets for people who gamble daily and those who said they gambled less frequently.

In the recent study, 39 percent of gamblers said they budgeted $50 or more per day over the course of a year on gambling. That compares to only 26 percent in the 1999-2000 study who said they budgeted $50 or more.

In the 2001-2002 study, 16 percent budgeted $25 to $49 per day, 17 percent budgeted $15 to $24 per day and 11 percent budgeted $10 to $14 per day -- roughly in line with the previous survey.

Seventeen percent budgeted less than $10 per day compared to only 11 percent in the 1999-2000 study.

Some, like University of Nevada, Las Vegas student Amy Nugent, are devising budgets and sticking to them.

Shortly after Nugent arrived in town from Cleveland at the beginning of the year, she gambled nearly every night at close-by casinos with buffets and other enticements.

"Everything was so new. I didn't budget -- I just had a good time," said Nugent, 28.

With gas prices pressing higher, Nugent says she has learned to set a maximum budget of $100 and will only gamble when out-of-town friends visit.

Determining spending on gambling is difficult. Many people aren't inclined to reveal what they actually spend when they gamble and may not tell the truth if they do, the LVCVA's senior research analyst Kevin Bagger said. That's why the agency has instead framed such questions in terms of what people budget, he said.

That said, the authority has some reason to believe that locals gambled more over the past two years.

Three major off-Strip casinos catering to locals -- the Palms in Las Vegas, the Suncoast in Summerlin and Green Valley Ranch Station Casino in Henderson -- opened during that period, driving up visitor levels in those neighborhoods and spending habits, Bagger said.

Also, the local population continues to grow, increasing the pool of potential big spenders, he said.

In the months following the Sept. 11 terrorist attacks, many Strip hotels began to market to locals to supplement business lost from tourists.

Operators of locals' casinos say the 32 percent increase in overall gambling budgets appeared high.

Strip properties' efforts to capture locals may have played a role, said Boyd Gaming Corp. spokesman Rob Stillwell.

Boyd operates three downtown casinos, the Stardust on the Strip and two locals' casinos along Boulder Highway.

"This is meant to indicate broad trends in leisure activity and isn't an exact science," Stillwell said. "It's still helpful to identify what's happening in the market even if it's not definitive of what's going on."

Locals' casinos likely saw "maybe 15 percent growth" in spending over the period given that the three new properties probably generated at least $100 million in revenue per year apiece and existing properties likely didn't grow much in the economic downturn, said Harlan Braaten, president and chief operating officer of Coast Casinos Inc.

The new properties may have accounted for some of the growth in that they are more convenient for people and may be leading some to visit casinos more frequently, he said.

A new supply of appealing slot machines and other more recent offerings, such as the company's higher-jackpot "Jumbo Bingo," is creating a new generation of players, added Lesley Pittman, spokeswoman for Station Casinos Inc.

The company can't say whether individual gamblers are betting more but visits are up across its casinos -- a possible sign that gamblers are taking to the new products, she said.

Gamblers who played either slot machines or video poker machines said they inserted an average of 6.4 coins or tokens per spin. That compares to 5.9 coins in the previous study and 4.5 coins in 1997-1998.

Still, table game bets appeared to be down over the period.

Among those who played table games most often, 26 percent said their average bet was more than $10 per hand -- down from 36 percent two years ago.

Nineteen percent bet from $6 to $10 and 33 percent bet $5. In the previous study, 16 percent bet $6 to $10 and 30 percent bet $5.

A total of 17 percent bet either $1 to $2 or $3 to $4 per hand -- a drop from 11 percent who bet either two years ago.

The average table bet was $12.20 compared to $46.18 two years ago and $17.59 in 1997-1998.

Also, gambling tied for second with hiking among Clark County residents' favorite and most frequent leisure activities, according to the recent survey. Going to the movies ranked number one and dining out came in at third place.

Sixty-nine percent of Clark County residents gambled at least occasionally, the survey found -- identical to the results of the 1999-2000 study.

Thirty-six percent said they gambled one to two times a month and 20 percent said they gambled less than once a month. That compares to 33 percent and 20 percent, respectively, two years ago.

Gamblers' demographic characteristics also haven't changed much from the past two years, the survey said.

People over 50 tend to gamble more often than younger residents, as do people who are retired and don't have children living at home.

Of those who don't gamble, 58 percent said it was because they couldn't afford it, compared to 48 percent two years ago who said it was "too expensive." Only 31 percent said they didn't like it or weren't interested, compared to 64 percent two years ago. Twenty-four percent said they "never win" or have unfavorable odds, compared to 29 percent. Twenty-one percent said they avoided gambling for religious reasons, roughly the same as two years ago. Still, only 6 percent said gambling was "too addictive," compared with 16 percent two years ago.

Sixty-five residents said they are members of a casino slot club or players' club. The previous survey didn't include the question.

Slot club members tend to be older and female, the survey said. Seventy percent of women said they belonged to a slot club, compared to only 59 percent of men. Seventy-two percent of respondents who were retired said they were a member of a slot club compared to 62 percent of those were were employed. And seventy-five percent of respondents 50 and older claimed membership compared to 57 percent of those under 50. Sixty-nine percent of people with average daily gambling budgets of $25 or more were members compared to 49 percent of those with gambling budgets of under $15.

Video poker -- played by 39 percent of residents who gamble -- was the most popular game played, followed by 29 percent who played slots. That compares to 41 percent who played video poker two years ago, followed by 27 percent who played slots.

Fifty-six percent of those who played video poker or slot machines play the quarter machines most often, while 34 percent prefer nickel machines. That compares to 60 percent and 32 percent, respectively, two years ago.

Thirty-seven percent of slot and video machine players said they played "progressive" machines -- up from 33 percent two years ago.

Fifty-eight percent of gamblers said they most often gambled at casinos outside of the Las Vegas Strip, downtown and the Boulder Strip. As in past years, gamblers cited convenience, better odds and better games at locals' casinos. They also cited crowds, traffic and tourists on the Strip and downtown as well as an image of downtown as unsafe or unappealing.

The margin of error for the respondents was 2.8 percent with a 95 percent level of confidence. That means that, 95 times out of 100, responses from the sample would be within 2.8 percent of the original results if the survey were repeated.