Nevada Casino Revenue Sees First Increase Since 2007

Nevada casinos received their first piece of good news for some time, as November’s gaming results revealed a modest increase in revenue of 4.4% year on year. Nevada casinos had a total revenue of $873.2 million in November 2009, which was $40 million up on November 2008’s figure and puts an end to a 22 month losing streak of decline.
The financial news was well received by an industry closely monitoring for any signs of a rebound, and following the Nevada Gaming Control Board report released Tuesday, Gaming Analyst Steve Schwartz commented:
“This is good news for Nevada, and particularly, Las Vegas casinos. It is a stepping stone for what the state hopes are brighter days. It still, however, may take another full year before casinos in Nevada get back to enjoying revenue figures they were used to before the recession.”
The Las Vegas Strip saw revenue increase by 8% to $473.8 million in November, and this figure is a key revenue indicator for Nevada, as it accounts for almost half of all casino revenue for the state.
Las Vegas has come under intense competition recently from Macau, which has attracted many Asian customers who would usually travel to Vegas. Macau has now become the leading casino gambling destination in the world, but Nevada state hopes the recent opening of CityCenter, by MGM Mirage, will help attract new customers and bring back some of the previous ones in 2010.
In addition to the sense of optimism to come from the recent casino revenue figures, Bill Lerner of Union Gaming commented, “multiple restaurateurs that we have spoken with are experiencing growth in key metrics such as covers and average checks,” and when that is combined with “overall Las Vegas visitation momentum … we are more confident that 2010 will represent the positive inflection in Las Vegas.”