Gaming Revenue Ticks Upward on the Strip

The Gaming Control Board numbers show that Downtown Las Vegas was not so lucky, with gaming revenues dropping by 1.3%, but North Las Vegas posted a 20% increase in revenues. For all of Clark County, the take was down nearly 6.6%; the county reflected an industry-wide trend throughout the state: Some places registered revenue gains on a year-over-year basis, but others continued to post decreases. Overall, revenues rose 4.35% statewide but were still down more than 7.9% on a year-to-date basis.

The percentage gains were all relative, of course. On an absolute basis, gaming revenues remain below the levels achieved when the economy was humming. For example, although the November 2009 win total increased from November 2008, it remained well below the $519.7 million of gaming revenues on the Strip in November 2007 and the $642.4 million of Strip revenues in November 2006.

The outlook for Strip revenues for 2010 suggest that overall revenue―from gaming, hotels, restaurants and entertainment combined―will increase between 3% and 7%, according to an analysis by CB Richard Ellis gaming experts. The CBRE analysis expects the increase from the new CityCenter project and new towers at the Hard Rock and Planet Hollywood resorts.

CBRE notes that November marks the last month of gaming revenue before to the opening of CityCenter. "We don't think we will get our first glimpse into CityCenter's true financial impact on the market until Chinese New Year and Super Bowl in late January/early February," the CBRE analysts says.

Comparing 2010 results with those of 2009 will be difficult, according to CBRE, because of the smaller number of meetings scheduled during the first quarter of this year. In addition, "Many Strip hotels are offering resorts credits that entitle guests to a specified amount of complimentary meals, shows or spa treatments that help boost room rates, but at an increased cost to the casinos," the company's report says.