The CBRE analysts' projection for an all-time monthly record for baccarat revenue came to fruition in February 2010, so the five or six properties that compete for the primary share of the baccarat /mini baccarat market "were likely pleased with the revenue performance in February," Oberman and Piroschsome say. But when adjusted for hold the numbers, although solid, "were not eye-popping," they say. Additionally, same-store gaming revenue other than baccarat /mini baccarat continues to be down double-digits—a troubling sign, the analysts say.
The CBRE analysts note that strip casinos are bundling food credits, spa credits, free show tickets and/or promotional table games chips/slot credits into room rates. The analysts believe bundling is an appropriate pricing tactic in the current operating environment. "Bundling is a good method of promoting a strong value proposition while allowing the casino to get a higher room rate than it might get otherwise," they say. "It also forces the guest to eat a meal or two at the hotel, which keeps them on property longer, and the cost of providing the 'free' food or entertainment is less than the retail value pitched to the customer.
Statewide gaming revenue was up nearly 14% to $947 million in February, according to the Gaming Control Board. The board said that for the state's fiscal year, which begins on July 1, statewide gaming revenue was down 4.27%, but revenue on the strip was up about half a percentage point.
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