Supplier News
US – Strip recovery remains ‘tepid’ despite 20 per cent gain in GGR
By Phil - 3 October 2013
August brought double digit growth along the Las Vegas Strip which was boosted by the fourth-highest baccarat revenue total ever during the month with the game accounting for over 69 per cent of the state’s monthly increase.
The Nevada State Gaming Control Board Gaming Commission said casinos across the State collected generated GGR of US$955.3m in representing an increase of 11.17 per cent from August 2012.
Strip casinos generated $589m marking an increase of 19.98 per cent from August 2012.
Analysts remained relatively downbeat on the surge in revenues thtough.
RBC Capital Markets gaming analyst John Kempf said: “Although the headline number looks strong, this was mostly a ‘luck’-driven result, as Strip properties played extremely lucky in August.”
Deutsche Bank gaming analyst Carlo Santarelli commented: “While baccarat is clearly the star of the month, domestic play exhibited encouraging trends.”
Stifel Nicolaus Capital Markets gaming analyst Steven Wieczynski added: “All told, we are generally pleased with the August results. As we have noted for some time, we continue to believe a more pronounced Strip recovery will be largely predicated upon a return of domestic visitation.”
Susquehanna International Group gaming analyst Rachael Rothman, added: “We believe the recovery in Las Vegas’s gaming fundamentals remains tepid.”
