Nevada Economy: Gaming Win Up in July

Fueled by strong July performances on the Strip and in North Las Vegas, Nevada casinos won $825.5 million from gamblers, 2.6 percent more than in July 2002, the Nevada Gaming Control Board reported Tuesday.

Strip casinos recorded the market's best July on record, with the $397.7 million won topping the summer month's previous high, $397.3 million in July 2000.

North Las Vegas casinos won $20.3 million, up 22.9 percent compared with the $16.5 million won in July 2002.

Despite the positive results in Clark County, which also set a July record with $655.9 million, poor returns from Reno and Lake Tahoe reduced the statewide numbers.

The effect of the Station Casinos-managed Thunder Valley Casino, the United Auburn Indian's Sacramento, Calif.-area casino, is believed to be the chief cause of the Northern Nevada downturn, control board statistical analyst Frank Streshley said.

The overall statewide increase of $21.2 million prompted Gov. Kenny Guinn to issue a cautionary statement.

"While the revenue collections early in the year are positive, the very small 2.6 percent growth in gaming win for the month of July is a cause for concern," Guinn noted. "We're pleased with the start we've had in fiscal year 2004 against the backdrop of a recovering U.S. economy, but we will remain cautious in our budgeting process."

Percentage fee collections in July and August, the first two months of the current fiscal year, were $98.4 million, 7.7 percent more than the state's $91.4 million projection.

For the remaining 10 months of the fiscal year, percentage fee collections will need to increase by 5.5 percent per month in order to meet budget projections.

Making results much more likely to meet those projections is the percentage fee tax increase slated to take effect Oct. 1. The top rate for casinos is slated to rise to 6.75 percent from 6.25 percent. Overall casino percentage fees are set to jump by 8.6 percent, the control board said.

Unlucky baccarat results -- from the casinos' and state's perspective -- trimmed the statewide results.

Streshley said baccarat numbers were hurt by the high-end game's "way below normal" hold percentage of 14.4 percent, compared with last year's 23.8 percent mark and the number the board considers par, 20 percent.

The poor hold more than offset a 23 percent increase in the amount baccarat players exchanged for gambling chips to $150 million from $122.2 million.

Taking baccarat results out of the July 2002 and July 2003 numbers, the statewide gaming win would have been up 3.7 percent instead of 2.6 percent.

Statewide slot win was $582 million, up 4.2 percent from $558.8 million, reflecting a solid month in the midmarket tourist and locals casino markets, Streshley said.

Nevada operators were underwhelmed by the Fourth of July weekend results, he said. With the holiday landing on a Friday this year, operators expected a very strong weekend.

"The July Fourth weekend was good, but below expectations," he said.

In other markets:

. Laughlin reversed a recent trend, posting a 10.1 percent increase in table game win that contributed to the market's 3.6 percent jump in win, to $44.5 million from $42.9 million. Streshley attributed a recent streak of declining table game results to increased competition from Arizona tribal casinos, now legally allowed to offer blackjack and other card games.

. Downtown Las Vegas reported a 3 percent increase, to $54.5 million from $52.9 million.

. Mesquite casinos won 3.7 percent more, $8.5 million compared with $8.2 million.