Nevada casinos continue to flourish after posting May revenue figures

Article by : Charles Perrin Jul 20, 2023

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According to reports, the Nevada casino scene is in robust shape, which reveals that over $ 1 billion was generated again in gaming revenues for May.

To be more precise, $1.28bn was reported in revenue, marking an incredible streak of 27 straight months in which $1bn or more was posted in revenue. It is impressive, and so far this year, March has produced the best results, with $1.31bn generated in revenue which will take some beating.

Figures published by the Nevada Gaming Control Board (NGCB) showed that statewide casinos fell just a mere $ 11 million short of hitting the $1.3bn milestone in May. Still, overall, it reflected a 10.1% increase compared to April 2022.

The only thing that might be slightly disconcerting is that the state collected $84m in percentage fees in May 2023, a 1.69% decrease from May 2022. That said, most of the revenue generated was from the Las Vegas casino strip, a gaming hub for visitors.

These revenue figures should be lauded, given there have been a lot of changes undertaken, more generally speaking, in the US gambling scene over the past few years. As far as Nevada is concerned, while there has been mounting speculation that Blackstone Inc. could sell half of its shares in the Bellagio Hotel and Casino, which would drum up plenty of interest, the state’s casino operators aren’t letting up.

Strong end to the fiscal year?

Over the past few years, Nevada has continued to experience exponential growth in the casino industry. To put things into perspective, the 2018/19 fiscal year produced some remarkable results, and this was the final fiscal year before the COVID pandemic took hold.

Indeed, if we take the results of March 2023, the revenue figures were up 22% compared to 2019. Meanwhile, May’s return was up shy of 24% compared to 2019.

Interestingly, Nevada casinos raked in $11.9bn for the 2018/19 fiscal year, which marked a 0.8% increase on the previous year.

At the time, of the 16 markets the NGCB tracked, Mike Lawton, the chief board analyst, noted 11 were up year on year. More significantly, the baccarat had accounted for the giant swing. And with the fiscal year fast approaching, the NGCB is confident Nevada can close out on a high and emulate the figures posted for the 2018/19 year.

New normal

While the COVID pandemic disrupted the Nevada casino industry, some casinos have been punching above their weight. Indeed, gaming revenue figures for March 2022 and May 2022 saw significant increases compared to the same months in 2019.

Some casinos have been trying to make up for lost time, and after the pandemic, it has been about getting to a new normal.

There has been more of a concerted push for organic growth, and slots have continued to reign supreme, but there has been some concern about the revenue figures coming out of Carson Valley.

Regardless, what can be gleaned from the May revenues is that Nevada is in a position of strength, and they have the wind in their sails. They won’t mind how the growth is being fuelled as long as it continues.