There were reports that casinos are facing a decline in revenues that due to economic recession. State gaming officials said that Nevada gambling revenues have increased by the rate of 5.7 percent in the month of February to $932 million. This is a figure that is all over the news, and analysts have commented on it with the words “solid progress”. This praise has come from analysts because despite a convention calendar was weak but still they achieved this much target.
This increase of 5.7 percent is pretty decent but when we compare it with revenues in January it starts to look humble. This increase in last month has been preceded by an 18.4 percent increase in January, when Nevada casinos were successful to collect more than $1.038 billion from gamblers during that month. Gaming numbers in January were so high mainly due to the reason that the calendar change had lucrative Chinese New Year fall on Jan. 23 and so the casinos were at party.
Nevada Gaming Control Board officials have released statements that Tuesday that collect revenues of $531 million was up by 3.3 percent compared with the progress in February 2011. Talking about individual revenues of casinos in Las Vegas, we have Downtown Las Vegas who has reported gaming revenues of $45 million last month. This is also a 12.7 percent increase from February 2011 and is a great performance over the year. Then we have The Boulder Strip who brought in $71.6 million last month and their progress is increased by almost 23 percent. Mesquite casinos have generated just over $11 million and still it is a humble progress of 2.55 percent. And last and also the least we have Laughlin who could not manage any increase this month and had to see gaming revenues decline by 0.21 percent of last month but still accumulate $42.9 million. We have overall figures reported by Clark County that says overall progress is 5.5 percent increase in February which means that gaming revenues have now increased to $812.1 million.
Brent Pirosch, director of Gaming Consulting Services for the Global Gaming Group at CB Richard Ellis in Las Vegas, has put forth his views on the situation by describing it a great progress. He said that considering the weakness of convention calendar in the first quarter of the year, this should be called a “solid progress” so far. State gaming tax collections also benefited by 69 percent in February to more than $70 million, figure reported by gaming officials. This means that so far, Nevada has collected more than $127 million in gaming taxes since this start of this calendar year. Baccarat, the game that is played usually by high-end gamblers, has been reported to have a 19.06 percent decline in revenues last month amounting to $114.1 million.
David Bain, a gaming analyst with Sterne Agee, has also commented on the recent trends and he said that the calendar shifts have negatively impacted February 2012 baccarat revenues. He also expressed that the expectations were a slightly better baccarat result despite the calendar shift but it did not happen. This decline was actually up against a 31 percent decline in baccarat comps during the month. But he also said that February’s strength in core games outweighed baccarat so the game was beneficial in total. Bain made all these comments in a research note.
Revenues from blackjack and also were increased 18.2 percent and 16.1 percent respectively during the month and so were the roulette revenues that increased by 18.1 percent.