Gaming decline in 2008 falls at record level

Downturn gained speed late in the year with no bottom evident

Justin M. Bowen

Gaming win took a tumble in 2008 in Nevada, with casinos on the Strip posting a 10.6 percent loss.

By Cy Ryan (contact)

Published Wednesday, Feb. 11, 2009 | 8:44 a.m.

Updated Wednesday, Feb. 11, 2009 | 10:38 a.m.

Headlines from the Vegas gaming industry

CARSON CITY – Nevada casinos saw their winnings slide 9.7 percent in 2008, the biggest drop in state history.

There have been only three declines in gaming revenue since 1955 “and this is the worst ever,” said Frank Streshley of the state Gaming Control Board. The other two declines in gaming revenue were a 1.3 percent drop in 2001 and a 0.3 percent decline in 2002.

Casinos on the Strip fell 10.6 percent, the biggest drop since the 1980s in a market that has had an average growth of 5.2 percent in the last decade.

Bill Bible, president of the Nevada Resort Association, said the industry was doing well at the beginning of the year but slumped in last few months.

“People are not sure where the bottom is,” Bible said.

Streshley, senior research specialist for the gaming board, said nobody knows when there will be a turnaround.

For the last seven months, the industry has produced $365.8 million in taxes for the state, down 16.1 percent from the same period a year earlier.

Casinos ended the year on a down note. Streshley said gaming win on the Strip fell 5 percent in the first six months of 2008 and then dropped 15 percent in the second half of 2008.

For 2008, slot win on the Strip fell to $3.2 billion and the game and table win was off 12.5 percent at $2.9 billion.

In the first six months, Streshley said there were high gasoline prices and falling home prices. And in the second half, there was rising unemployment and the troubles in the stock and financial markets.

For the 12 months, the Strip win from the 21 games fell 12.2 percent; craps was off 4.8 percent; roulette was down 9 percent; Baccarat was off 15.8 percent; the win in the sports pool dropped 22 percent. And slot win fell by 8.7 percent.

The Strip, which accounted for 53.1 percent of the gaming win in Nevada in 2007, fell to 52.8 percent.

Downtown Las Vegas casinos reported an 8.1 percent drop to $582.5 million, the third straight year of a decline. Laughlin casinos won $571 million, off 9.5 percent. Casinos in Boulder Strip posted an $839.4 million win, down 10.5 percent -- the first decline ever in this market, said Streshley.

North Las Vegas casinos reported $282.7 million, down 6.7 percent and the balance of Clark County had gross win of $1.3 billion, down 7.2 percent and the first drop ever. Mesquite dropped 12 percent with a win of $143.9 million.

Washoe County casinos for the year fell by 12.8 percent; South Shore Lake Tahoe casinos were off 11 percent; Carson Valley areas dropped 14 percent and Elko County dropped 5.6 percent.

For the Strip in December, the total gaming win at the 41 casinos was $474.2 million, down 23.1 percent. The biggest drop was in Baccarat that recorded a 45.4 percent decline. The only bright spot on the Strip in December was the penny slot machines that posted a 9.1 percent increase in gross win.

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

Discussion: 8 comments so far…

By BeaverBrook

2/11/09 at 11:27 a.m.

Suggest removal

Bring me back the days of a cherry winning... and tripple bars giving me another hour of play - and MAYBE I'll come back.

Two things killed this industry - Players getting smarter and casinos pushing the envelope (taking more) paying less...

Years ago - a cherry was a WIN! Not a push.. Tripple bars meant like 180 coins!

Now - One cherry might mean you lose 2 of your 3 quarters... Or even worst.. "a push" so they can take your money on the next spin.

Take the money OFF the top - Stop the silly BIG PAYOUTS in the millions.. Let people play and enjoy..

While you are at it.. Bring back the smaller casinos... Smarter players know we are paying the light bill, staff and hell - even the fees to play I dream of Genie.. and Monopoly.

Bring back the simple RED WHITE AND BLUE sevens machines and Lets us win smaller (yet nice) pots more often.

There - I just fixed the downturn for the whole industry in 5 min -

You can send me my check as soon as possible.. I'll be waiting.

I'll also be staying away from the action until you do something about the greed.
By neiman1

2/11/09 at 11:39 a.m.

Suggest removal

With harry Reid fighting anything that smells of domestic oil production we are guaranteed a recovery for America will not include Nevada as fuel will again be $5.00 a gallon. Now "the ONE" equates a corporation coming to Las Vegas with betraying the trust of the people.. Did we make a mistake with these guys.. YOUR BET.
By 777

2/11/09 at 11:58 a.m.

Suggest removal

What it isn't:
A) The price of gas is lower.
B) Airfare is down.
C) Room deals are finally re-appearing

What it is:
1) Easy unsecured credit is drying up. More people are having to live within their means.
2) Home values are down, which reduces the amount of equity people can borrow against.
3) Many have been laid off.
4) Many fear they will be next.
5) Casino/Resorts focused on luxury vacations, which are one of the first things cut when times are tough.
6) Seasoned players are fed up with bad VP pay tables, 6/5 blackjacks, raised minimums and 1c slot proliferation.
7) Casinos removed the "no strings" attractions such as cheap food. Now you have to play a lot to get a little off.
By ssenjo

2/11/09 at 12:17 p.m.

Suggest removal

I'm not so sure I'm buying the gloom and doom, even if it is unprecedented in some respects. There's no way so many casinos expanded so greatly just so a recession could bring everything to a halt. The second a few bellweathers like Cisco and Ford provide the slightest glint of hope for a return to solvency, the whordes will return to Vegas and Reno. I play in Elko County and you'd never know there's a recession . . . If I didn't read articles like this, I wouldn't have a clue . . .
By 777

2/11/09 at 12:56 p.m.

Suggest removal

Elko County dropped 5.6 percent.
By gqbossing

2/11/09 at 2:29 p.m.

Suggest removal

It's an economic thing. Gaming odds are for casual tourists, the local casinos don't typically pull that reduced odds crap...
By Babyboomer

2/12/09 at 12:51 p.m.

Suggest removal

BeaverBrook...said it all !!!
By Socalalan

2/13/09 at 8:27 a.m.

Suggest removal

Hummmm -- I can pay $49 a night to stay in a Super 8 motel here in L.A., but it will cost me $99 a night at the Four Queens or even Whiskey Pete's? I think I'll just go to the Hustler Casino, or the Normandie Casino in Gardena.