War hurt May gaming win, says official

Thursday, July 10, 2003 | 11:37 a.m.

CARSON CITY -- For the second straight month, Nevada casinos won less money in May than they did a year ago and a state official says the industry was still feeling the effects of the war in Iraq.

The state Gaming Control Board reported today that gaming win statewide fell to $805.6 million, a decline of 3.96 percent from a year ago. And this May compares with a soft May of 2002, when revenue was off 0.6 percent.

Frank Streshley, senior research analyst for the board, said, "It was a quiet month for special events. Concert promoters with the potential of the Iraq war never scheduled anything for the first six months of the year."

"(We were) still feeling the impact of the Iraq war. International travelers ... really dropped off," he said. But he added he was surprised by the good showing of baccarat, in which gross revenue rose by 5.3 percent.

Some of the biggest baccarat players come from foreign countries for the high-stakes game.

The board said revenue from the 21 games statewide fell 5.6 percent; craps was up 21.5 percent; roulette was down 10.7 percent and the sports pool rose 19.6 percent, mostly due to baseball betting.

Streshley said slot win fell by 6.1 percent. Part of that was due to a slowdown in play of the Megabucks machines -- off 47.4 percent. Customers apparently stayed away from the machines after a jackpot of $29.6 million was hit in the previous month. And the jackpot payout was just starting to build again. So far this year, the casinos have paid $559.1 million in taxes, an increase of only 0.81 percent. Streshley said this was the last collection for the last fiscal year and it was $17.7 million below the estimate of the Economic Forum, upon which the state budget is based. The forum predicted a 4 percent increase in taxes for the fiscal year.

Casinos along the Las Vegas Strip reported gross win, computed before taxes and business expenses, dropped 5.5 percent to $404.9 million, the second straight month of a decline after eight straight months of increased revenue. The decline this May compares with a 0.4 percent drop in the same month of 2002.

Game and table win on the Strip was off 1.3 percent but baccarat revenue rose 6.9 percent. Revenue from the 21 games was down 8.3 percent; craps was up 30.7 percent; roulette fell 14.1 percent and slot win was off 9.5 percent. Wagering in the sports pool was down 15 percent.

Downtown Las Vegas clubs won $55.8 million, down 4.8 percent from a year ago. Slot win fell 8.6 percent but games revenue rose 4.8 percent. It was also the second consecutive month of declining revenues.

North Las Vegas was one of the stronger markets during the month, said Streshley. Casinos posted $81.9 million in gross revenue, up 9.5 percent. That's on top of an 8 percent gain of a year ago. Slot win was up 6.5 percent and table win rose 38.2 percent.

After three straight months of declines, Laughlin clubs registered $47.1 million, up 4.7 percent. Slot win was up 5.6 percent but table game revenue fell by 0.1 percent.

Clubs along the Boulder Strip dropped 12.9 percent in gross win to $48.5 million. It was the largest decline since August 2002 when revenues fell by 16.3 percent. Slot win this May was off 15.3 percent but game revenue rose 3.1 percent.

Casinos in Mesquite, the fastest growing city in Nevada, reported win of $9.8 million, up 9.2 percent. Slot win jumped 10.9 percent and game gross revenue inched up 0.4 percent.

The board said clubs in the balance of Clark County registered $65.7 million in gross win for May, a 1.49 percent drop from a year ago. Slot win fell 3.2 percent but table revenue increased 8.5 percent.

After three straight months of declining revenues, clubs in Washoe County registered a 0.72 percent increase to $93.5 million. Slot win was up 0.8 percent and table revenues inched up 0.3 percent.

Gross win totaled $24.5 million at South Lake Tahoe, down 8.2 percent. It was the second straight month of lower revenues. Slot win was off 14.5 percent. Revenue from the gaming tables rose 5.5 percent.

Elko County casinos posted a 7.5 percent decrease in gross win to $17.6 million, the third straight month of falling revenues. Slot win dropped 9.9 percent. Table revenue rose 1.4 percent.

Clubs in Carson Valley, which includes Carson City and the valley portion of Douglas County, reported gross win of $8.5 million, up 0.38 percent. Slot win fell 0.7 percent but game and table revenue jumped 10.5 percent.