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Casino Interests Wary of Nevada Win Results

LAS VEGAS - Nevada casino win was up 7.7 percent in February for the measure's first monthly increase since August, but the $54.1 million jump to $752.6 million is viewed as misleading by some gaming interests.

The results released Tuesday by the Nevada Gaming Control Board were healthier than January's statewide decline of 14.8 percent and the nearly 7 percent monthly dropoff of November and December.

But the February numbers, which measure casino revenue before corporate expenses, received a strong boost from a calendar that saw Chinese New Year and the Super Bowl fall in the second month of this year as opposed to last year's January festivities.

That left numbers crunchers saying this year's January and February results should be measured against the same period in 2001 for an accurate comparison.

The outcome: Statewide casino win was down 4.9 percent for the two-month period ended Feb. 28, while Strip win fell 10.2 percent.

"While it's refreshing you have a positive number (in February) you have to put it in context for more of an apples-to-apples comparison," said Bill Bible, president of the casino industry's Carson City lobbying arm, the Nevada Resort Association.

Some Nevada gaming bosses - especially those in Las Vegas - have consistently rejected claims that their industry has rebounded from the worldwide travel decline that followed the Sept. 11 terror attacks and saw 12,000 to 15,000 casino industry layoffs locally.

They say a premature declaration of an economic turnaround along the Strip, which generates about half of the state's gaming revenues, could be used by politicians seeking to raise the state's gaming tax or union organizers wanting improved wages, benefits and working conditions for their members in the upcoming round of citywide contract talks.

"People need to understand the context of the economic recovery, which is far from complete," said Mandalay Resort Group Senior Vice President Mike Sloan. "Since our industry already pays the lion's share of tax revenue in the state we hope people will stop and reflect before they point the finger at us again. People always say, 'Ah ha, there's no need to look anywhere else for (tax) revenue because gaming is coming back.' "

Nevada gaming taxes generate nearly 40 percent of the money in the state's general fund, which helps pay for schools, welfare, roads and state employee salaries. Many of the state's gaming bosses have long-argued that Nevadans should look elsewhere for future sources of tax money.

MGM Mirage Senior Vice President Alan Feldman struck a tone similar to Sloan's in explaining the health of the Strip's casino industry.

"I think there's a lot of misunderstanding of where the industry is right now," Feldman said. "We've come back faster than anyone expected, further than anyone expected, but the suggestion we're back to normal is incorrect."

While not a true gauge of a company's daily performance, the publicly traded stocks of Mandalay Resort Group and MGM Mirage have rebounded from their post-Sept. 11 lows.

Mandalay shares were up 10 cents Tuesday to close at $29.98. The company's stock traded as low as $13.90 on Sept. 21 and as high as $32.77 on March 4.

MGM Mirage shares were up 54 cents Tuesday to close at $35.74. That was up from its 52-week low of $16.19 on Sept. 21 and its March 18 high of $37.20.

"I would say that the powers that be in Las Vegas are very happy with the trends, and obviously the stock market agrees," said a Wall Street financial analyst who requested anonymity believing his comments would anger gaming executives. "I don't know that they are better than they were before Sept. 11, but they're better than they could have thought on Oct. 1."

In February, six top MGM Mirage received bonuses totaling $5.2 million for last year's job performance.

"If they're not doing well then why the bonuses? Because they did well two years ago? That's absurd," added Bill Thompson, a University of Nevada, professor who studies the casino industry.

The Strip's 43 casinos saw their overall take from gamblers jump 10 percent in February - a turnaround from January's 23.9 percent plunge.

The annual Chinese New Year celebration drove a 143.7 percent jump in statewide baccarat win and a 22.9 percent surge in the casinos' table games haul. Strip baccarat win was up nearly 150 percent to $40 million.

Asian high rollers stayed away from the United States in massive numbers late last year, with concerns about airlines safety and the anthrax deaths.

"They weren't terrific, but they were on the plus side," McDonald Investments casino industry analyst Dennis Forst said of the February results. "They do continue the improving trend we've seen the last couple of months. I expect March to be further confirmation that business is improving."

The table games surge may be a broader gauge of an economic and social turnaround with some observers believing financially well-to-do gamblers are returning to Las Vegas after recovering from the blow that saw investors lose trillions of dollars in their portfolios during the past 18 months.

"The volume's coming back. People are spending more money," said control board statistical analyst Frank Streshley.

But the Nevada Resort Association's Bible, a former chairman of the control board, which compiles the monthly numbers, echoed the comments of Sloan and Feldman, saying the February figures should be eyed with caution.

"The revenue numbers are simply top-line numbers that don't really reflect how the individual properties are operating," Bible said. "Some are going to do better than others."

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