Growth in gaming win slows

Nevada casinos recorded another record haul from gamblers in 2007, but the growth percentage was the state's lowest increase in four years.

Nevada's gaming win was more than $12.8 billion during the year, a 1.8 percent increase from $12.6 million won in 2006. On the Strip, casinos won more than $6.8 billion, a 2.1 percent increase from $6.68 billion won in 2006.

Figures were released Tuesday by the Gaming Control Board.

Gaming analysts said a softening in the economy on both the national and local levels, a reduction in the number of hotel-casinos on the Strip, and a slowdown in the state's population growth all contributed to a percentage increase that was less than 2 percent for the first time since 2003.

"We get spoiled by nearly double-digit increases," Control Board senior research analyst Frank Streshley said. "It was a good year because with the loss of capacity and the softening economy, Nevada casinos were still able to increase their gaming win."

Nevada's gaming win topped the $10.3 billion taken in from the booming Macau market in 2007, although the Chinese territory's win beat the total for the Strip. Macau surpassed the Strip for the first time in 2006.

Streshley said the Strip numbers might have been affected by the loss of the Stardust, which closed in November 2006, and the shutdown of the New Frontier, which closed in July. Both casinos were demolished to make way for multibillion-dollar hotel-casino projects now under development.

Casinos won $4.4 billion from table games in 2007 and $8.4 billion from slot machines, meaning 65.8 percent of the state's gaming win came from slot machines. Customers gambled more than $137.7 billion on slot machines in 2007, while $31.6 billion was wagered on table games.

The year was somewhat up and down. In October, Nevada casinos won an all-time single monthly record for gaming revenues, collecting $1.164 billion from gamblers. A month later, casinos statewide suffered a 14 percent decrease in gaming win compared with November 2006, the largest single-month revenue drop in almost five years.

December's gaming win gave Nevada a boost to close out the year. Casinos won $1.095 billion during the month, a 3.06 percent increase compared with $1.062 billion won in December 2006. On the Strip, casinos won $614.8 million, a less-than 1 percent increase compared with $609.9 million won the year before.

During December, baccarat produced an all-time monthly record in gaming win and amount wagered. That was due in large part to the WBC welterweight championship fight on Dec. 8 at the MGM Grand Garden, won by Floyd Mayweather Jr. over Rickey Hatton, as well as the four-day New Year's weekend.

Gamblers wagered $1.165 billion on baccarat and casinos collected $143.7 million in baccarat rooms in December.

"December was a perfect example," Streshley said. "A year ago, the Strip win was up more than 23 percent."

Bear Stearns gaming analyst Joe Greff echoed those sentiments.

"Strip trends were mixed in December," Greff said in a note to investors. "Total drop on the Strip increased 2.6 percent year over year, while total hold decreased."

Gaming win reflects revenue collected by casino before taxes, payroll and other expense is deducted.

The tax collections from gaming fell for the second straight month and were below forecasts for the fifth straight month.

Casinos paid $46.3 million in gaming taxes for December, 9.4 percent less than $51.1 million collected a year ago. For the first seven months of fiscal 2008, tax collections from gaming are down 1.64 percent compared to the same period for 2007.

Streshley said 2007 had several highlights and lowlights. Casinos in downtown Las Vegas won $632.9 million in 2007, an increase of 0.4 percent from $630.4 million in 2006. It was downtown's first year-over-year increase in three years. Casinos on the Boulder Strip, which includes parts of Henderson, won $927.7 million in 2007, a decrease of 0.2 percent compared with $929.7 million in 2006, which was the area's first year-over-year decline in more than 20 years.

The locals casino market, referred to as the balance of Clark County, won $1.38 billion from gamblers in 2007, a 7.1 percent increase compared with $1.29 billion in 2006. The growth rate slowed somewhat, Streshley said, from the 20.3 percent increase the area experienced a year ago.

He added that balance of Clark County has established itself as the state's second-largest gaming revenue producer behind the Strip.

"The locals market didn't experience the growth it achieved the previously, but we weren't expecting any big jumps because of the local economy," Streshley said.

Casinos in Washoe County won $1.05 billion in 2007, a decrease of 1.5 percent compared with $1.07 billion won in 2006. It was the first loss suffered by the Northern Nevada county in four years.

Streshley blamed the downturn in the Reno housing market as a reason for the decline.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or (702) 477-3871.