Strip gaming win plummets 25 percent in October

Numbers show 10th straight month of declines

By Cy Ryan (contact)

Wednesday, Dec. 10, 2008 | 10:32 a.m.

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Dec. 1 -- Cutting costs versus serving customers

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CARSON CITY – Casinos on the Strip suffered through their worst month in at least 25 years in October, as the gaming win dropped 25.7 percent.

Statewide, casinos recorded their biggest monthly decline, 22.3 percent.

Frank Streshley, economist for the state Gaming Control Board, said it was the biggest percentage drop since monthly records were kept in 1983. But, he added, it’s being compared to a strong month in October 2007, when the gaming win on the Strip rose 19.8 percent.

Casinos on the Strip reported October win, figured before taxes and business expenses, at $475 million, down $165 million from a year ago. He said bettors played $5.4 billion in the slot machines and table games, a drop of 18.6 percent from a year ago.

The only bright spot on the 41 Strip casinos was the sports pool that recorded a win of $7.9 million, up 110 percent.

This was the 10th straight month of declines for the state and the Strip. There were no major special events to draw in players, Streshley said.

The Strip casinos reported a 9.5 percent decline in 21 games; 4.1 percent from craps; 7.5 percent from roulette, 63.4 percent from baccarat; 25 percent from keno and 22.7 percent from slot machines.

The only category of slot machines that showed an increase were penny slots, which were up 10 percent.

The decline in the state mirrors declines in the stock market and other segments of the economy. “There’s been a tremendous drop in consumer spending,” Streshley said.

Statewide, the gaming industry reported $904.9 million in win, off 22.3 percent or $260.2 million. Slot machine win fell 22.7 percent and games were off 29.8 percent.

Downtown Las Vegas casinos posted a $48.4 million win, down 19.6 percent. The slot machine win dropped 22.2 percent and games were off 9.7 percent.

The report showed North Las Vegas casinos won $18.6 percent, down 34.5 percent. Slots fell 37.6 percent and games were off 2.7 percent.

Laughlin casinos posted a win of $45.7 million, down 14.9 percent, with the slot win falling 15.3 percent and games off 11.1 percent.

Casinos on the Boulder Strip recorded $62.9 million in winnings, down 28.2 percent. The slot win fell 34.2 percent but table games rose by 27.3 percent. It was the only market in Clark County that recorded an increase in gaming or slot win. The Boulder Highway casinos posted a 113 percent increase in 21 games and a 131 percent rise in roulette.

Mesquite casinos reported a win of $11.9 million, down 20.7 percent. Slots were off 22 percent and gaming win fell 10.5 percent.

In the balance of Clark County, casinos registered $95.1 million in win, off 18.4 percent. Slots were off 20.8 percent and games dropped 8.2 percent.

The only market in the state to show an increase was Carson Valley where the casinos won $9.9 million, up 3.4 percent.

For the 16th straight month, Washoe County casinos posted a decline in winnings. They reported $78.1 million in win, off 9 percent; South Lake Tahoe casinos posted a $20.8 million win, down 23.7 percent. And Elko County was off 6.5 percent with a win of $24.1 percent.

Cy Ryan may be reached at (775) 687 5032 or cy@lasvegassun.com.

Discussion: 15 comments so far…

By FTW

12/10/08 at 11:53 a.m.

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Gotta love the term "win".
By gqbossing

12/10/08 at 2:01 p.m.

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back to 2005 numbers, lete me know when they hit numbers pre 2000...
By scouser

12/10/08 at 2:32 p.m.

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Harrahs have definitely tightened their video poker machines just came back from thanksgiving break. This was my 15th trip to vegas and had the worst payout on the machines I have ever experienced. I am staying away next year and will come back in 2010.
By acrosby85254

12/10/08 at 3:49 p.m.

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To Scouser; not to rub it in but that's why it's called 'gambling'. Now if we called it 'winning' you have a case. Any ways your donation for 2010 will be appreciated
By harske

12/10/08 at 6:36 p.m.

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To acrosby85254; You should really think before you type. People like scouser are exactly who pays for your miserable existence in Vegas, if you even live here. People know all about gambling. They don't really come here to win big, they just want to be able to play for a while. And when places charge way too much and tighten everything else up, they can't play as long, and they don't stay as long. That's the real problem. Has nothing to do with winning versus gambling.

Don't be surprised if scouser and a lot more people don't donate in 2010 either. And thumbing your nose at them isn't going to help.

scouser... we're sorry you had a rough go of it, and thank you for your previous 14 trips. We'll hopefully see you in 2010.

Sincerely,

The people in Vegas who get it
By OG

12/10/08 at 8:04 p.m.

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Harske is on-point. Amen. That was well said.

Vegas is what it is. And millions of Americans are grateful to have it as a vacation alternative.

Good luck Vegas.

OG
By acrosby85254

12/11/08 at 4:22 a.m.

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Harske... feeling a lot of hate from you.... did you loose big recently? First off I mostly AGREE with you... several if not all locations that operate gaming have 'tightened' up as you so put it, but what did they tighten?? Most if not all .25 cent and higher slots and some nickels, most pennies and nickels have increased payouts to offset the other changes, and if YOU are a 'local' you would know this. What does this mean.....? In a year after year after year since at least 2001 the 'powers that be' are continuing their operating practice of why milk the cow? -slaughter it instead.. cause there always is another cow down the road. My afore mentioned comments are if you as a visitor/tourist/local have delusions of grander and hitting it big, going home to tell your boss to take this job and..... well you know...., its like buying a lotto ticket and picking the numbers your self... you just have yourself sooooo convinced that you will win. I mean come on, per your statement people, what? Tell themselves 'lets go to vegas honey and drop a bunch of cash, it will be fun', Please come back to reality people.... and take these words for simply what they are.... words. You have to work for your happiness you cannot win it and Vegas will rebound and remain fine in my lifetime, but I truly do believe that Vegas is NOT forever and some day it will dry up under it's current business model and maybe people will come to the realization that YOU CANNOT BEAT THE HOUSE.... EVER, NEVER, PERIOD. hence the term gambling. P.S. Merry Christmas to you and your family Harske.
By bigdaddy

12/11/08 at 9:37 a.m.

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Just a few comments...

I lived in AC and Las Vegas for 10 years and worked for Harrah's in both places...it is my understanding that...

1. Slot machines can be tightened up by installing a new chip, but it is complicated and not done that often.

2. The only way video poker machines can be tightened up is by changing the payouts which are clearly posted on the front of the machine.

3. In the long term, you cannot beat the house..that is true. In the short term, however, it can be amazing fun. My roommate went out one night with $40 and came home with $6,000. That is the truth. Now, that is fun! He still lost a fortune that year but hits like that are absolutely fun.

Good luck to Las Vegas (no pun intended) and Merry Christmas to everybody!
By bigdaddy

12/11/08 at 9:56 a.m.

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one more thing....this is a good quote:

In a year after year after year since at least 2001 the 'powers that be' are continuing their operating practice of why milk the cow? -slaughter it instead.. cause there always is another cow down the road.

Some famous old school poker player once said "You can shear a sheep many times, you can skin it only once"

The "powers that be" should remember this!
By David1961

12/11/08 at 11:31 a.m.

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To "bigdaddy",...pretty good, I gotta say,... pretty good.......
By scouser

12/11/08 at 11:31 a.m.

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Illinois' casinos have increased the number of slots in their casinos and ratcheted down the payback percentage of those in existence to turn a 13% decrease in visitors into a 20% increase in profit.

Illinois' nine casinos have managed to make 20 percent more cash from gamblers despite a 13 percent drop in visits between 2000 and 2007.

The amount of money pumped into slots has increased just 2 percent in that time, but the casinos' take has jumped 30 percent.

Casino operators are relying on tighter slot machines, ones programmed to keep more from every dollar bet. In 2000, 7 percent of suburban slots kept more than 10 cents of every dollar bet on average. Last year, 46 percent fell into that category.
The billion dollar question is whether or not Vegas is playing similar games during this belt-tightening period of economic insecurity. Only bean counters would think that rewarding those customers who buck the Vegas visitation downtrend with tighter slots is a good idea.
By pacman720

12/11/08 at 12:21 p.m.

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Harrahs has the absolute tightest holds on their machines..up to a 25% hold on the penny slots..which you can not tell the hold % by just looking at the game ( unlike poker and keno..you can tell the hold % by the paytables) Also I agree that Vegas has FORGOTTEN about the gambler..and the MBA types are making every department a profit center..where as in the past your F&B was usually a loss leader to attract the gamblers with low food prices..sure you still had your high end steak house..but a $13.99 Western Omlette in the coffee shop was unheard of..not now. Vegas needs to get back to basics..remember what built this town...THE GAMBLERS!! One told me " We may be dumb cause we put $ into the games but we're not stupid..we know when we're not getting a fair shake." I work in the biz..I remember what an old timer told me once.." I know you're gonna get my money..you know you're gonna get my money..just let me play with it for awhile" Time to get back to basics.
By bigdaddy

12/11/08 at 1:28 p.m.

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to pacman...I totally agree
By tvegas

12/11/08 at 3 p.m.

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You have to remember the these casinos are run by MBA's (Managed By A**holes)
By SeattleBill

12/14/08 at 10:17 p.m.

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I have to agree with Harske...time was 20 years ago, if you wanted a decent blackjack game, you went to the Vegas Strip, the home of the most favorable rules. It was fairly easy to find tables where both my wife and I could sit together at a $3 or $5 table, have a great time and maybe even have a lucky streak that lets you leave the table a winner (for a while). We're not card counters, and we usually leave a tidy sum in LV, but there's an expectation of being able to play for a while. If you dont have winning session once in while, there's no desire to play. Now, with the proliferation of 6/5 tables, and removing most of the minor player advantages (DAS, surrender, dealer stand on S17, oduble-deck, even DOA in some places, etc.) which greatly tilt the odds in the casinos favor, there is absolutely no reason for us to travel to LV to play blackjack. My local card rooms and tribal casinos here in Washington mimic 'old school' vegas, spreading a far better game, with lower limits and catering to players. And dont get me started on the removal of coins from the slots. Good lord I miss that more than anything. Being able to lug around a bucket of quarters, at least for a little while, was one of 'funnest' things about playing slots.

For a while we were excited about video poker, when you could find 9/6 machines, but sadly, they too got the squeeze by the corporations.

I know the games have to favor the house; if they could just be a little less greedy...we'd play!