SEARCH NEWS:

 

Easy Comparison Drives September Gaming Jump

LAS VEGAS -- One good thing about bad economic results is that they can make the next year's numbers look better by comparison.

That simple truth was demonstrated in September, when Nevada's 340 casinos won $810.1 million from gamblers, up 6.1 percent from September 2001, a month that included three weeks of tough business that followed the Sept. 11 terrorist attacks.

Strip casinos won $391.1 million, up 7.5 percent from $363.8 million, according to Nevada Gaming Control Board numbers released Tuesday.

Downtown, Boulder Strip, North Las Vegas, Laughlin and "balance of Clark County" markets all reported year-over-year improvements.

But the key to the September results is that they remain far below numbers projected before Sept. 11, industry experts and state officials said.

Statewide, casinos won only 2.8 percent more than the $788.4 million they won in September 2000. Strip gambling halls won 1.7 percent more than the $384.5 million won in September 2000.

Those increases together are far less than the jumps recorded when new megaresorts and a vibrant economy boosted numbers during the late '90s.

And less revenue for casinos means less percentage-fee-based taxes for state government.

"Despite the encouraging 6 percent increase in gaming win over last September, we are still nearly $17 million short of gaming tax revenue as projected...for fiscal year 2003," Gov. Kenny Guinn said in a statement. "This follows a $31 million shortfall in fiscal year 2002."

"Comparing the September numbers with September 2001 is comparing apples to oranges," said Nevada Resort Association President Bill Bible, the casino industry's top Carson City lobbyist and former control board chairman. "The year-over-year improvement doesn't reflect boom times, it reflects only the possible recovery from last year's downturn."

Monthly comparisons should continue to be easy ones, control board statistical analyst Frank Streshley said.

"They'll be easy through January," Streshley said. "October 2001 was down 4.9 percent, November was down 7.5 percent, December was down 7.6 percent and January was down 14.9 percent."

September's increase was the state's second straight increase after three months of declines.

Streshley said the September numbers were boosted by the Sept. 14 Oscar de la Hoya-Felix Trinidad boxing match.

September had only four Saturdays compared with five in September 2001, a comparative disadvantage as Saturday is the week's best gambling day.

"September 2001 was not as bad as we thought it would be, as the month started strong with a Madonna concert and had a Labor Day weekend that included a Saturday," Streshley said.

Statewide and Strip results would have been even better had baccarat bettors lost more than $29.6 million, 31.7 percent less than the prior September.

If baccarat is excluded from both years' numbers, the statewide win would have been up 8.4 percent rather than 6.1 percent, he said.

Baccarat is the favored game of many of the world's biggest bettors.

Baccarat bettors exchanged $107.6 million for casino chips in September, down 30.8 percent, reflecting continued weakness in high-end international business, Streshley and Bible said.

Only a relatively lucky 27.5 percent hold rate kept the baccarat win from shrinking further. An 18 percent hold rate is considered normal.

Blackjack winnings also dropped, down 13.7 percent to $80.5 million, while the slot win was up 8.5 percent to $539.4 million.

Reno-area casinos reported declines in the amount they won from bettors, with Washoe County casinos winning $93.4 million, down 4.9 percent from $98.2 million.

The decline is even more severe when September results are compared with September 2000, with Washoe's 52 casinos down 12.2 percent over two years.

The state's brightest result was on the Boulder Strip, where the market's 33 casinos reported a 22.4 percent jump to $57 million from $46.6 million.

Although the state won't say which casinos are in which market, the Boulder Strip market is thought to include Sam's Town, Boulder Station, Castaways, Sunset Station, Green Valley Ranch, Fiesta Henderson, Joker's Wild and Arizona Charlie's East.

< Gaming News