Nevada Casinos GGR Crosses $1B+ for the 14th Month in a Row

The Nevada Gaming Control Board (NGCB) has reported a 14-month billion-dollar streak for the State of Nevada. According to the board’s statistics of April’s gaming performance, the Silver State collected approximately $1.13 billion in gross gaming revenue. This is clear evidence that Nevada’s primary revenue stream has fully recovered from the pandemic-induced depression. The outstanding numbers indicate that after a year-long ordeal that saw brick-and-mortar casinos shut down across the state, the industry has sprung back to life and exceeded pre-pandemic figures. It’s also the third time in the history of Nevada to hit over $1 billion in the month of April.

B Global’s managing partner Brendan Bussmann commented on the streak, expressing confidence that the $1 billion a month revenue was not just a trend but the new standard for the state. He also stated that while recovery may be affected by geopolitical issues, supply chain challenges, and inflation, he expects the winning streak to continue. According to his projections, May won’t be any different.

Stellar Visitation Numbers Even After March Madness

Gambling revenues are usually expected to dwindle in April after a busy March. However, this April proved a little different for Nevada as the event calendar ended up attracting hundreds of thousands of tourists to the state. Statistics at the Harry Reid International Airport show that 200,113 international passengers from 7 countries entered the state via direct airline service. The total number of arrivals and departures recorded was about 4.25 million, which was still high compared to the 4.27 million in March.

Michael Lawton, the Senior Economic Analyst of the NGCB, pointed out that the resumption of international flights was a sign that the airport was nearly fully restored from its pre-pandemic condition. And looking at hotel occupancy numbers, there was 84% occupancy on the Strip, a significant increase from 2021.

Of course, in April, major sporting and entertainment events considerably contributed to the gambling revenue surpassing $1 billion. Some of the said events include a fully-sold-out four-night Passion to Dance (PTD) Concert by renowned Korean Pop Band BTS at Allegiant Stadium, the NFL Draft, and the National Association of Broadcasters Convention.

Lawton attributed the Strip’s April results to the visitation statistics saying in an official statement:

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“The gaming revenue numbers are outstanding. April is not always the strongest gaming win month as there are some calendar events that are big headwinds: the tax deadline, Easter and Passover.”

Clark County Accountable for 85% of the Revenue

The Clark County gaming market reported the highest revenue collection, with $960.4 million of the $1.13 billion coming from the county. This is easily explained since it is home to Las Vegas and hence the Strip, which recorded a $593.4 million betting handle for the month. The Strip has always been the biggest contributor to gambling revenue in the Silver State, and 2021 was no different as it accounted for $7 billion of the $13.4 billion collected during the year.

An interesting fact about the impressive numbers is the fact that some of the games, like Baccarat, had an increase in the amount wagered but a decrease in the overall revenue. In addition, downtown Las Vegas, North Las Vegas, and The Boulder Strip also saw some drop in revenue. Joe Greff, a gaming analyst at J.P. Morgan, cited macro concerns and higher gas prices for the decline. Nonetheless, he added that the Strip would have brought in more had consumer spending habits not been impacted by inflation.

Meanwhile, Deutsche Bank gaming analyst Carlo Santarelli suggested that the numbers would have been better for different reasons. To him, a bigger turnout at the NFL Draft would have been enough to propel the numbers higher. Santarelli noted:

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“Given the nature of the NFL Draft and the fact that it is free to attend, we do not believe it drew a crowd with high gaming spend propensity, and we would also note that Strip room rates on the Thursday night of Draft weekend were low. Accordingly, we don’t believe the Draft was a meaningful needle mover for Strip operators.”

The Silver State is Will Be Back to Firing on all Pistons Soon

The April gaming revenue marks an estimated 9% year-on-year increase and the first four months of 2022 saw a 28.4% revenue increase compared to 2021. Meanwhile, some industry insiders have also stated that an extra weekend in April 2022 partly contributed to the total revenue. However, analysts also indicate that the year-on-year rise in revenue and the monthly comparisons will reveal different figures in the coming months due to the rising inflation that has spiked consumer costs.

Senior Analyst Lawton predicted that rather than seeing continued growth in revenue, the rate would be more moderate in the coming months, especially on The Strip. Another analytics source, Fitch Ratings, estimated that Sin City will likely experience full recovery in 2024. In a May report, the company revealed that it was confident that Las Vegas City is well-placed for the upcoming pressures as it strives to attain a full economic recovery.