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US – Nevada tops the billion dollar mark for first time since 2013

By - 13 July 2015

Nevada’s gaming revenue surpassed the US$1bn mark for the first time in May since December 2013 due to a host of special events that brought more gamblers into Las Vegas.

Statewide, casinos generated $1.003bn, representing a 3.3 per cent increase from May 2014. Casinos on the Las Vegas Strip generated almost $601.2m during the month, marking an increase of 1.4 per cent.

Sporting events and concerts saw a record 3.74m tourists coming to Las Vegas in May, according to the Las Vegas Convention and Visitors Authority. The boxing match between Floyd Mayweather and Manny Pacquiao, the two-weekend Rock in Rio concert series and an Ultimate Fighting Championship brought record number to Sin City.

The result was some impressive growth in table game revenue, which excluding baccarat saw revenue growth of 22.9 per cent to $191.1m. Slot machine revenue surged by 11.9 percent to $272.5m. Slot machine revenue has increased in 10 of the past 12 months. “That’s the long-term trend we’ve been waiting to see,” Nevada Control Board Senior Research Analyst Michael Lawton said. “It was just basically a really strong month in your non-baccarat business.”

Wells Fargo Securities analyst Cameron McKnight said: “The results were much stronger than the headline number would suggest given an extremely tough hold-related comparison in Strip baccarat. We were encouraged by strong slot and non-baccarat table growth. The high-end baccarat comparison was very challenging. All in, we think the results were encouraging given the growth in slots and non-baccarat tables.”

Stifel Nicolaus Capital Markets analyst Steven Wieczynski added: “We believe the second quarter is off to an encouraging start for Strip operators, particularly those less dependent on the high-end internationally sourced baccarat segment. Additionally, we would note strength in traditionally domestically sourced games often produces healthier returns across the various nongaming segments, including lodging and food and beverage, which should benefit Strip operators’ second quarter results.”

Union Gaming added: “The increased visitor volumes during the fight weekend contributed to some of the uptick in slot and table volumes, suggesting the big fight played a significant role in the Strip’s performance in May.”

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