Nevada Casinos Experience Biggest Ever Revenue Fall In 2009
February 15, 2010 10:01 amWhen last month the Nevada Gaming Control Board released November’s casino revenue figures, there was cause for optimism after the state broke a 22 month losing streak of decline.
However, December’s figures indicate the state’s woes are set to continue after it posted a 3.24% year on year decline for the month to generate just $859 million in revenue. More disconcerting still, is that Nevada’s gaming win in 2009 had fallen to $10.4 billion, down 10.4% compared to 2008, and represented the single largest drop since records began 55 years ago.
Following the dire results, Control Board Tax and License Division Chief Frank Streshley said: “Prior to this decade, since we’ve tracked the numbers since 1955, we’ve not ever had a decline until 2001, and then within this decade we’ve had four declines, with the largest being 2009 at 10. 4 percent.”
Trying to find some positive aspects to the figures, Streshley noted that from falling 13.4% in the first 6 months of 2009 compared to 2008, in the second half of the year the decrease had fallen to 7.2%. Furthermore, the Las Vegas Strip actually experienced a 5.9% increase in revenue in December, helped by improved baccarat wins for the casinos and the opening of the new $8.5 billion CityCenter development project.
Carson Valley was the only other Nevada area seeing an increase in revenue for December, up 8.52% year over year to $8.1 million. However, poor performances were reported everywhere else with North Las Vegas down 25.17% in December year over year, The Boulder Strip down 19.81%, Laughlin down 11.68% , Mesquite down 7.59%, Washoe County down 10.77%, Sparks down 8.75%, North Lake Tahoe down 11.65%, and Elko County down 5.56%
Gaming revenues have been declining steadily in Nevada since the Sept. 11, 2001 terrorist attacks dealt a heavy blow to the states tourist industry, which was further compounded by the continuing global economic downturn, which started in 2007. Commenting on the situation Streshley said:
“My personal feeling is we won’t see any improvement in the locals market until unemployment improves.”