BUSINESS

Nevada posts improved revenue of 1.8% in October 2012

TAGs: Business, casinos, Nevada gaming control board

Las Vegas stripThe progress has been slow, but at this point, Nevada will probably take any sign of improvement any way they can get them.

So when Nevada gambling revenues rose 1.8% in October compared to figures from the same month a year ago, you could say that there were more than few sighs of relief emanating from the Strip.

According to a report released by the Nevada Gaming Control Board last Friday, casinos in the state won $978.8 million from casino gamblers during October, a figure that represents a 17% improvement from October 2011 and 6% for the first five months of the fiscal year, according to the

Nevada’s casino revenue for October follows similar gains from September, one that saw 3.3% gains in September, making it two straight months that casino revenue in the state performed with a ‘+’ sign attached to it. Of the revenue generated, the state collected $54.5 million.

Casinos at the Las Vegas Strip, without question the biggest moneymaker amongst all the casinos in the state, collected $580.7, representing a 3.6% increase in October. Meanwhile, casinos in Reno earned $42.6 million in revenue, a 7% improvement in October while South Lake Tahoe made $15.8 million, up just 0.08%.

Wells Fargo Securities gaming analyst Dennis Farrell Jr. told investors that while unpredictability has become the theme of revenue figures this year, Farrell Jr. believes that better days lay ahead. “We continue to believe Las Vegas is in a gradual recovery despite this year’s unpredictable results,” he said.

“Volatility is likely going to continue for the rest of the year as cautiously optimistic management commentary encounters challenging gaming comparisons.”

Of all the games being offered in the state, baccarat has become the go-to-game for casinos, accounting for wagers amounting to $883.8 million in October, an improvement of just 5% from the same time last month, according to Nevada Gaming Control Board Senior Research Analyst Michael Lawton.

October also saw a strong performance from roulette, which earned $50.8 million for the casinos, an improvement of 174.2% from their figures over a year ago. Likewise, the number is the single highest total for the game in history, eclipsing – more like shattering – the $33.3 million record from December 2007.

In the end, the numbers aren’t the kind that would make casinos jump up in joy, but nevertheless, it’s an improvement and for a town that’s only regaining its footing after recent turbulence.

Macquarie Securities gaming analyst Chad Beynon, talking with the Las Vegas Review Journal, summarized its best. “While we would have liked to see more of an acceleration in gaming revenues in October, we think the results were fine given the negative calendar and the large sports book decline,” Beynon said.

“We are heading into the busier convention and event season, so we expect November and December to finish the year stronger.”

Comments

views and opinions expressed are those of the author and do not necessarily reflect those of CalvinAyre.com