Gaming Geyser – Nevada has reported over $1 billion in gambling revenue since spring 2021. This is a streak of 14 consecutive months.
Nevada can’t stop winning.
As per the Nevada Gaming Control Board, April saw a 20.5% increase in gambling revenue from casinos. April is the 14th consecutive month in which the state has earned more than 1 billion from its casinos. This is another sign that Nevada’s most significant industry has mostly recovered from the covid-19 induced depression.
Brendan Bussmann is the managing partner at B Global, a consultancy firm that focuses on gaming, hospitality, and sports. “Fourteen months later, $1 billion per month is the new standard.
Sin City continues to be a significant contributor to the state’s record-breaking gambling revenue. The city’s April total gaming win from Las Vegas Strip casinos was $593 million, a record for April. Clark County also set a record for April.
Michael Lawton is a senior research analyst at the Nevada Gaming Control Board. He says that Nevada has not reached $1 billion in April three times: 2008 right before the Great Recession and April 2021.
Lawton says that the gaming revenue numbers are exceptional. “April isn’t always the best month for gaming because some calendar events have big headwinds, such as the tax deadline, Easter, and Passover.”
During the month of May, big events attracted millions to Vegas. This helped offset rising gas prices as well as inflation. In Vegas, the NFL held its annual draft and BTS, a world-famous Korean boyband, performed four shows at Allegiant Stadium. International travel has also increased. International passengers arrived and left around 200,000 in April, the highest number since the pandemic. It also represented a 30% increase over March 2021.
Lawton says, “It was a solid month in international travel–the strongest we’ve seen since Feb 2020.”
Slot machines dominated April’s gambling revenue. The casino cash cow earned $804.1 million.
Lawton believes that growth rates will slow down. The next few months will reveal after more than a decade of breaking records. Fitch Ratings believes Vegas will not fully recover before 2024. However, the firm is optimistic about the city’s overall outlook. Fitch’s May report states, “While inflation is likely to increase city labor costs and limit discretionary spending on entertainment and travel, current trends indicate ongoing improvement.” Fitch believes that the city is well-positioned to address the expected pressures during the ongoing recovery.
As per the most recent report of the Las Vegas Convention and Visitor Authority, visitors to Sin City are up 31.4% compared to April 2019 and down only 5% compared to April 2019. While visitor numbers are still low, they are improving. April 2021 saw a 27% decrease in visitors compared to April 2019. At the moment, Vegas air travel is returning to normal. Since April 2019, the number of passengers boarding in Vegas had remained flat, a significant improvement from April 2018, when it was down 32%.
Bussmann believes that while growth will slow down, there is substantial demand. While inflation, geopolitical issues, and supply chain problems could slow down recovery, Bussmann thinks that most of the economy have reopened after March 2020. He sees Vegas continuing its streak up until an economic downturn.
He says, “I expect $1 million in May.” “I was there for a few meetings the other day, and you would have thought it was New Year’s Eve,” he said.