Las Vegas Strip with Summer Rewards

Statewide revenue jumped 7.5 percent to $1,063 billion. It seems as if the market is unstoppable as earnings continue to increase at a speedy pace. Last year more than 30 million people flocked to this adult Fantasyland and its expected even more will visit the city this year and drive revenues even higher.

With more visitors and amenities than ever, plus a robust Locals market, the city is poised for another record breaking year. “We believe the results confirm our channel checks and note that the growth on the Strip and in the Locals market is in line with our estimates. Additionally, we note that the comparison for August was a staunch +9.3% and the calendar was neutral,” noted Joseph Greff, a Bear Stearns Gaming analyst in an investors note provided to onlinecasinocrawler.com.

According to the Gaming Control Board, as analyzed by Bear Stearns, on the Strip, table hold was 10 bps better year over year in 2006, but heavier volume drove table revenues 26.2 percent higher. Baccarat revenues were very strong, growing 115 percent on an improved hold (9.73 percent versus 8.33 percent. Slot win in August was up 6.0 percent as hold levels remained roughly in line with those of August 2005, 7.28 percent versus 7.27 percent.

Additionally, growth in the locals market was fair in August, up 6.6 percent. Greff said the Balance of Clark County was responsible for the growth of the Locals market jumping an astounding 21.2 percent which was boosted by the debut of the South Coast and Red Rock Casino. Other Locals markets in Las Vegas include North Las Vegas which dipped 3.7 percent and Boulder Strip, which dropped 6.2 percent. Part of the drop in those neighborhoods was expected as the Locals market flocked to newer product.

Red Rock is being lauded as one of the nicest casino resorts ever constructed and on a per room basis cost more than any casino hotel ever built.

Another reason for the sharp year over year increase in profits for August was the number of weekend days that fell during the month. In 2006 there were 10 weekend days, vs. nine in 2005, a 9.6 percent increase.

August was the third most profitable month for the Strip so far this year. January 2006 seems to be the month to be as Strip casinos pulled in $627.5 million in gaming revenue, just fewer than 30 percent more than in January 2005. In May they pulled in $603.8 million, which was only a 6.2 percent increase.

Las Vegas Downtown is continuing to suffer and has see year over year declines for three months straight losing 13.2 percent, 5.3 percent and 14.3 percent in June, July and August respectively as business shifts further south on the Strip.  So far this year, this area has pulled in $420.9 million, 3.8 percent less than this time last year.

In August, gamblers wagered $6.256 billion at 69,004 positions. Collectively the casinos held $555 million or 8.9% of the money bet, which averages out to a casino win of $260 per gaming position per day. In August 2005, the casinos won about $216 per position per day, keeping 8.7 percent of all money wagered.

Tale games were the most lucrative for the casinos, keeping 11.6 percent of all bets places, .01 percent more than August 2005. At the slots, 7.28 percent of all money wagered was won by the house.


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