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Dealer Joe Carrion waits inside the high-limit baccarat room in January at the Hard Rock Hotel.
Monday, Feb. 22, 2010 | 2 a.m.
Enlargeable graphic
Understanding the game
- Origins: Baccarat, pronounced bah-kah-rah, is a card game believed to have been introduced to France from Italy during the reign of Charles VIII of France, who ruled from 1483-1498.
- Outcomes: It is a simple game with only three possible outcomes — player, banker or tie. In the variation played in Las Vegas and Macau casinos, the casino banks the game at all times but has a low house edge. Players may bet on either the player or the banker, which are designations for the two hands dealt in each game. The object is to bet on the hand that totals closer to nine.
- The basics: The cards are dealt face down, one to the “player” first, then to the “banker.” And then the same again, so there are two cards each. Both cards in each hand are then turned over and added together and the dealer calls the total. The player and banker can then draw a single card or stand pat. The hand with the highest total wins. Tens and face cards all are worth zero points; all other cards are worth their face values, with the ace worth one point. If a total is more than 10, the second digit is the value of the hand. For example, a 9 and a 6, which total 15, make up a five-point hand.
A select group of players concentrated among a few Las Vegas casinos wagered an eye-popping $1.3 billion on baccarat games in December — a record for any single month in state history.
Although most gambling games in Nevada are getting significantly less action in the recession, baccarat, a high roller game offered by 17 properties on and near the Strip, is booming.
Strip casinos won $155.7 million from baccarat players in December, surpassing previous records for revenue and wagering volume set in December 2007 at the tail end of the tourism boom. By comparison, the industry’s most popular games, slots and blackjack, have retreated to revenue levels seen in 2003-04.
December’s opening of MGM Mirage’s $8.5 billion CityCenter, a high-end complex anchored by the luxury Aria, was primarily responsible for the boost in baccarat play.
More than $42 million of the estimated $56 million in gambling revenue generated by Aria in the two weeks after its Dec. 16 opening came from baccarat, according to Las Vegas analysts Union Gaming Group and others that have examined state figures released this month.
(Although property-specific information is confidential by law, Aria’s opening yielded a spike in a little-watched gambling category, offering an unprecedented look at a resort’s initial performance.)
By those estimates, each of Aria’s 21 baccarat tables generated about $2 million in revenue in two weeks. Those are big numbers, even by the standards of baccarat, a game that can attract wagers of more than $100,000 a hand. Baccarat tables in the Strip’s biggest casinos generated about half-a-million dollars a month last year, state figures show.
New Year’s Eve has always been a big event for baccarat, which is favored by wealthy Chinese whose net worth is growing even as the economies of the United States and other parts of the world are hurting.
Casino openings typically aren’t a good measure of long-term business performance, as they generate huge crowds who flock to experience the buzz of a new resort. That’s especially true of CityCenter, the nation’s largest and most expensive privately funded construction project. Its five-year development was closely followed in the media and marketed globally by MGM Mirage.
Yet analysts believe Aria’s baccarat action is an early sign that the property — although likely stealing some business from other Strip resorts — is attracting additional high roller business to Las Vegas.
“This speaks very well to continued (baccarat) demand at all properties, not just CityCenter,” said Grant Govertsen, a Union Gaming Group principal. “There’s no doubt CityCenter is cannibalizing business. But perhaps they are cannibalizing business less than investors expected.”
MGM Mirage stock soared on the news but plummeted again Thursday after reporting poor fourth-quarter earnings that revealed big declines in some other parts of the business.
During the company’s conference call to discuss earnings, CEO Jim Murren said international business, driven by Asian customers, reached a new high last year and that its share of the high roller market has increased, in part because of Aria.
Other properties are benefiting as fourth-quarter baccarat volume rose at casinos other than Aria, Murren said.
The company had its biggest crowds for Chinese New Year this year, he said, while credit lines and front money that facilitate high roller action are up significantly from a year ago. Many Asian players are first-time customers who are coming to town to see Aria, he said.
Baccarat is helping to fill the state’s depressed tax coffers but doesn’t benefit the vast majority of Nevada casinos, including most on the Strip, that don’t offer it or cater to high rollers. Overall, the Strip experienced its biggest decline in gambling revenue in history last year, and statewide gambling revenue fell to 2003 levels.
Lower-tier properties can’t afford the potential hit that a single baccarat player’s multimillion-dollar win could mean for the bottom line.
And yet, baccarat play on the Strip — which accounts for slightly more than half of all the gambling revenue won by casinos statewide — is making Nevada’s numbers look better than they would otherwise.
November and December were the only two months of year-over-year increases in gambling revenue on the Strip in 2009. Excluding baccarat, overall Strip gambling revenue would have fallen 5 percent to 6 percent during those months.
Viva Las Chinese high rollers.
Only hope left in this ecnomy.
Looking forward my visit to Macao next month.
The only problem is that tips are low on baccarat. Easy work for the dealers, though. The percentages are definetely better on baccarat than on a rip-off 6:5 black jack with restricted rules. Might be the reason why more players are playing baccarat these days.
" Baccarat is helping to fill the state's depressed tax coffers but doesn't benefit the vast majority of Nevada casinos."
Nor does it benefit anyone else. MGM Mirage stock might have gotten a bump on the Baccarat news, but then tumbled on quarterly loss statements, What does that tell us? it say's that the high rollers alone are NOT going to sustain the industry. It says that the idiot casino executives better do what is necessary to bring back the general tourism dollars by bringing back the value to gambling.
Bore-us--No news is ever good to you. Everything sucks. Now a story with huge increased baccarat play and you show up with more of your negative crap that the tips ARE LOW! Wow-You're a real piece of work.
environprotector- You're another one who attempts to spin good news into bad.
Hmmm.... Could it be that the casinos are going to be saved?
Lets see. "...each of Aria's 21 baccarat tables generated about $2 million in revenue in two weeks..." this calculates out to a little over one billion dollars a year in Bacarrat revenue for the Aria. Keep this going, and they can pay off their mortgage.
But what about the other comment in this story. "Baccarat tables in the Strip's biggest casinos generated about half-a-million dollars a month last year, state figures show". This is only six million dollars a year (for all casinos), and not one billion dollars a year (for the Aria only). So, which statement is right, and who is spinning who?
ono17jpjp:
Have fun, it is like old Vegas, in that you don't have all the cars/traffic like in modern LV, but nothing beats "Vegas Baby".
Some of the Chinese may appear to be rude, but you are transcending a cultural shift, don't make a lot out of it- it is brought about by their conditioning of crowds, just get in there with them around the tables, have fun.
Press them hard for your comp; they will not take care of you like in Vegas. That said you're not going for the comps anyway.
In Macau walk through town up to St. Peters ruins and eat some egg tarts. The pasty is fantastic, and so is the peanut brittle candy.
Try to have most of your meals out and about in town (Macau), where you will find a de-lish chi/guese (Chinese/Portuguese) flavor to some dishes.
There is a restaurant called the "Porto Exterior" across from the Rio Casino -- 100 yards or so. Dinner for two will cost you around 50 bucks; 100 HKD = 12.90 USD. Just think of it like two for a quarter; 200 HKD = 25 bucks.
Pack lightly, two tuxes/dinner coats and a couple of casual options, point being leave room to bring back stuff in your bags without having to pay the bandit airlines for the excess weight duty fee.
"Viva Las Vegas" = "I Love Macau"
Kash, that's the difference between the best table and the average for all tables. And that's top line revenues, not bottom line earnings.
logic_should_rule :
You should keep your comments closer to the decree of your user name..
logic_should_rule = environprotector comments negatively on most stories on the Sun... look at his profile...
For the LV economy, I hope this will make a large enough impact to reallllllly help us
While in Macau don't forget to order "African Chicken" at one of the many great eateries; One of the most delicious food items I've ever put in my mouth!
The essential problem with relying upon bacarrat revenue is it's unpredictability; You'll generate great numbers one quarter and get gutted the next quarter. Better to keep the mid-market slot players coming to town as the revenue stream is easier to estimate and budget for.
VegasGM85 :
You fail to realize that when given a reason to be positive , I will be the first to acknowledge it. I stand by my opinions and beliefs. Right now there are many ways to fix the problems here in the valley, yet our elected so called leaders are frozen and ineffective. We as the constituents must voice our protest because to sin by silence makes cowards of men..
Hopefully, those first-time baccarat players will be back at Aria again soon. I would love to be a "fly on the wall" in the debriefing get togethers amongst those Chinese billionaires as to their impression of New Years at City Center. (A chinese fly, of course.)
Maybe next year, they'll be in Dubai or Macao--Mega resort hopping.
BULL $HIT---very misleading article about aria. This place is not really doing that good, but they are desperate to make it appear that way. For people on the outside of the industry, lets point out the facts---usually one guy losing millions or tens of millions of dollars is the "big increase in baccarat drop". I know for many people it is hard to understand, but that is the reality--you get one super rich guy blowing 100 million or whatever and that is 99% of all the "numbers" they are talking about. As soon as the one guy or couple guys are done losing all their money, you go back to the normal numbers. And then you usually have to try to collect the "money" which in many cases is partially credit they have fronted to the player which will never be collected and will have to be written off. They have foolishly tried to push every good player from the other 3-4 good properties they have to go to this place while they were in town, and steal as many players back from wynn and adelson as they could. The reality is these rich people play at many properties and after a couple days or a couple trips will gravitate back to where they like to stay and feel comfortable. Many players do not like the "feel" of the property. Also they need to refinance almost 6 billion in debt and surely that has something to do with information being released and push to pump the numbers up on this property. When the smoke clears, billions of dollars have been spent on a property that was not needed at the beginning of the worst recession since the great depression. Curious how many empty rooms this summer, or at what discount it will take to fill them. To get the true story of las vegas right now, all you need to do is look at the earnings reports of lvs and mgm and it is clear las vegas is down 20% in every measure(being kind). City Center was a strategic blunder. You have 9 properties in one market, and only have 1/2 a property in macau and AC. It was very obvious they needed to expand in asia, and dump properties in nevada, but of course they spent tons of money building the albatross, and they get only 1/2 of any earnings. I believe they will get the refinance and they will release positive numbers for aria, but at what cost? Other properties sit 25% empty so you can fill the ego driven property, As a relatively new shareholder, I am not too positive on the moves of mgm-mirage management. The good thing about the gaming industry is--No matter how many bad mistakes the management makes (and they make MANY)--the gaming business is so strong it overcomes all the stupid blunders. As a shareholder in a gaming company that is some consolation.
logic_should_rule
Who came up with this 6:5 horse-split on black jack? Rather keep up with 3:2 but deal from shuffle machines. This will keep the game going on. No reasonable thinking person would accept the 6:5 proposition. They must come up with hot babes with silicon treatment dancing in front of the table and super loud dance music to get some drunk tourists fall into that trap. If you think this comment has too much negativity for you, then remove your pink classes and open your eyes. There's a lot of reality and most importantly, a lot of truth and objectivity in my comments.
From Switzerland
I think what is happening is that Asians - who are very superstitious - are trying their luck at Aria. When they realize that they lose just as much there as anywhere else, they will move back to their usual haunts.
When Venetian first opened the word was out that the tables were cold - for the house - and Asians flocked to the high limit Baccarat. As time went on, the business evened out and Venetian didn't get any more business than any other Baccarat pit.
Many of the Asian gambled are involved with illegal business, especially one for or another of money laundering, and for them, they'd just as soon gamble away the money as spend it on anything else. They certainly don't waste much money on clothes, especially the men.
Many of the Asian gamblers are involved with illegal business, especially one form or another of money laundering, and for them, they'd just as soon gamble away the money as spend it on anything else. They certainly don't waste much money on clothes, especially the men.