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Nevada Casino Win Off 1.4 Percent Last Year

It was a year plagued by the national recession, the worldwide travel decline that followed the Sept. 11 terror attacks, and the lay off of 12,000 to 15,000 workers and reduced work hours for thousands more.

The casinos' take was off in seven of the 12 months when compared with 2000, according to results released Tuesday by the Nevada Gaming Control Board. Each of the year's final four months was down.

The trend was also reflected in December's statewide results, which saw Nevada casinos win 7.58 percent less from gamblers than they did in December 2001.

The month's results were much worse along the Strip, where casinos saw their winnings plunge by 13.4 percent to $370.9 million.

The industry's problems were also reflected in visitor numbers released Tuesday showing 35 million people visited Las Vegas last year, a 2.3 percent decline from 2000.

That doesn't mean the state's 343 casinos lost money. Nevada's casino market remains the largest legal gambling market in the United States followed by Atlantic City's, which generates annual casino win of about $4.8 billion.

But the opening of no new Strip megaresorts last year apparently hurt the 39-property market, which generated 49.7 percent of the state's win, down from 50.1 percent in 2000. Strip revenues fell to 2.1 percent for the year to $4.7 billion.

"One of the things that is not happening is a major expansion along the Strip. We always had some expansion," said control board statistical analyst Frank Streshley.

The statewide decline was believed to be the first for Nevada since the early 1980s when the United States was emerging from the Reagan-era recession.

"The year as a whole is nothing to look at," said McDonald Investments casino industry analyst Dennis Forst. "I think it's laying the groundwork for a difficult first half of the year."

A decline in casino win translates to a falloff in taxable revenue for state government.

The result: State officials are seeking new ways to close a projected $11 million budget shortfall since the start of the budget year that could reduce money set aside for schools and social services.

"When you look at the (casino) numbers you just go, 'Yikes,' " said Greg Bortolin, press secretary to Gov. Kenny Guinn. "The country's in a downturn. Those numbers reflect all of the things going on in the rest of the country."

Since the budget year began on July 1, taxable gaming revenue has declined by 0.8 percent, but there's no way to determine to the penny the budgetary fallout from the casino win dropoff, Streshley noted.

"Right now, it's tough to calculate," he said.

The state has saved $9 million by not filling 1,500 open government jobs.

Nevada casinos won less from baccarat, 21, craps, roulette, and dollar and quarter slots. Only nickel slots fared well, with casinos winning 15.9 percent more than a year ago from gamblers who dropped as much as $2.50 a bet on the games.

The nickel haul - up in 10 of the year's 12 months - apparently reflected the surge in the number of tight-fisted travelers who drove to the state in search of deals after the Sept. 11 terror attacks.

Downtown Las Vegas casinos and outlying gambling properties in Primm, Mesquite and Carson City were also winners because of sizable drive-in traffic.

"All of the drive-in markets excluding (Reno's) Washoe County appeared to perform a lot better than the Strip market, which is a fly-in market," said Streshley said.

"I think Washoe is facing higher competition from Indian casinos in Northern California. So far this year the winter has caused more highway closures."

Las Vegas' neighborhood casino market fared better than Streshley expected. Boulder Strip casinos saw their take increase by 2.4 percent for the year, although North Las Vegas gaming properties reported a 10.9 percent decline, with the 18-month-old Suncoast, near Summerlin, cutting into the North Las Vegas numbers.

Streshley offered no explanation for the Boulder Strip growth, although some top locals gaming bosses have speculated that the post-Sept. 11 attacks forced many Southern Nevadans to spend money closer to home rather than travel out of state.

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