Casinos on the Las Vegas strip have been published for five months in a row over years in gaming revenue. Game associations in central Las Vegas and along the Boulder Strip have reported reductions over three of the past four months with available data.
State, non-limited casino victory has been down for four of the past five months, which has resulted in almost 2 percent dip in gaming revenue during the six-month period in June to November.
The December game revenue has not yet been released, but the general consensus on Las Vegas is that there will be another “soft” month.
The industry’s latest results are in contrast to its post-covid economic boom, highlighted by a year-long distance of monthly revenue reports showing regular YOY increases and culminated for three years in a row with record-breaking revenue. Despite the past months, 2024 will almost certainly set another annual record.
But does the latest information indicate that consumers’ demand for Las Vegas casinos soften?
Vegas is “pretty healthy”
Industry experts do not seem to believe it. At least not right now.
“I think it has been to withdraw,” said Aaron Lee, senior research analyst for Macquarie Capital. “But overall I would say that things are still very stable if you look at the underlying basic demand,” for example slot machine handle (the amount invested), which is up almost 2 percent compared to the year in Las Vegas.
Lee said the information “indicates that things are still quite healthy in Vegas.”
The monthly gaming revenue decreased during the second half of 2024 can largely be attributed to a few factors, says experts, including difficult comparisons from year to year with a few exceptional months in 2023 and significant statistical fluctuations in Baccarat, a notorious volatile table game.
Another factor was the failure of the second annual Formula One Las Vegas Grand Prix in November to match or exceed the effects of November 2023’s first race, to which some Strip casino operators referred during the months until the event.
Lee, however, offered an optimistic view for the coming year.
“People have actually spent a lot of money in recent years, and it will be a bit natural to withdraw (in leisure demand),” Lee said. “But when it comes to our views, we think of the game page, the revenue will probably be flat to something up in 2025.”
Inflation, national economy affecting vegas
Brendan Bussmann, an analyst for the gaming industry with Las Vegas-based B Global, noted that in addition to the tough YOY comparisons from one-time events, such as the F1 breed, greater economic forces affect consumers. Bussmann said that the public has undergone two “technical recession” over the past four years and endured inflation levels that have not seen in almost four decades.
“A slight decline in number does not necessarily indicate softness on the market without other factors that have contributed to the total current environment,” he said.
Casino managers on the strip tend to agree.
In several income calls last year, some strip’s largest operators designated Upticks in Convention and meetings for 2025 and 2026, as well as growth forecasts for non-playing segments of their companies, such as food and drink, entertainment and hotel rooms.
The increase in non-playing customer expenditure has driven Las Vegas growth during the better part of the past three decades. Since gaming revenues are only a metric through which the industry measures its health and performance, there does not seem to be much concern about a downward trend.
Reasons for “warning” clear in southern Nevada economic statistics
Stephen Miller, an economics professor at UNLV and research director for the university’s center for business and economic research, agreed that the overall fiscal picture was “quite good” but stated that there are some negative signs for Southern Nevada’s economy, which can affect the region’s largest industry in other ways. Miller pointed out that the leading index for Södra Nevada’s economy has been pushing down since March 2022 and unemployment is increasing.
Uncertainty about how the fire fires in southern California can affect the housing market in nearby metro areas, such as Las Vegas, is also worth noting, he said.
“It does not signal that we have any problems, but the leading index gives some caution. So we’re careful, ”Miller said. “We don’t see a recession around the corner, but who knows?”
Contact David Danzis at ddanzis@ theplayerlounge.com or 702-383-0378. Follow @AC2vegas-danzis.bsky.social.
