Nevada casinos extend $1 B revenue streak to six months

It’s a slight dip from July’s record-setting $1.35 billion, but August was still one of the best months for casinos in the history of the state’s market. Like July, August’s revenue was driven by the continued resurgence of action on the Las Vegas Strip.

Casinos on the famous stretch of Las Vegas Boulevard won $625.69 million from gamblers, making up about 54% of the state’s total revenue. It represents a whopping 97.22% increase compared to August 2020 but is down from the $793.66 million those same casinos won a month earlier. Compared to the pre-pandemic August 2019, it is a 20% jump.

Strong numbers from the tourist-centric Las Vegas Strip is a key component to continuing Nevada’s rebound. Some analysts believe that the trend will stay intact in the near term.

“I think we’re still in that trajectory of growth,” Michael Lawton, a senior research analyst for the Nevada Gaming Control Board, told Forbes. “I’m not going to guarantee $1 billion again, but the blueprint is there to continue.”

One of the main reasons July was a record-setting month was increased tourism. There were 3.3 million visitors headed to Sin City that month, but in August, the tourism dropped by 9.2%, according to a report released by the Las Vegas Convention and Visitor Authority.

Continued fear over the spread of the delta variant could be the force behind the decreased tourism rate. At the end of July, Nevada Gov. Steve Sisolak reimposed an indoor mask mandate that forced gamblers to cover their faces while inside casinos. August was the first full month with the edict in effect again.

Lawton told Forbes that the mandate, the delta variant and a softening demand for flights to Las Vegas have him concerned about a short-term top in the market.
Aside from the strip, all areas of the state saw year-over-year increases in revenue. Based on year-over-year percentage gains, Downtown Las Vegas saw the second-largest bump in revenue. Downtown operators reported $64.2 million in gross revenue, which represented an 80.54% increase from the same month a year ago.

Based on revenue in nominal terms, casinos on the Boulder Highway did better than any region outside of the Strip as properties won $91.1 million from gamblers. Boulder Highway, Downtown Las Vegas and the Las Vegas Strip are all located in Clark County, which won nearly $1 billion on its own, making up 85% of the state’s total revenue.

If Nevada can record another at least $1 billion in gambling revenue in both September and October, it would tie its own record for consecutive 10-figure revenue months. The record is currently eight and was set between November 2006 through May 2007.