Nevada and Macau Both Extend Monthly Winning Streaks

Nevada and Macau Both Extend Monthly Winning Streaks

Macau and Nevada have released their latest monthly gambling figures, with both markets posting solid revenues and extending their impressive results for the year so far. Nevada’s gambling market still continues to be significantly smaller than that of Macau, though, with the $1.04 billion it collected in May around one-third the $2.81 billion generated by the Chinese enclave in June.

Historical Background

In 2006, Macau generated $7.2 billion in revenue compared to $6.6 billion for Nevada, marking the first year that the Chinese gambling hub overtook the Silver State as the world’s biggest gambling destination. The gap has continues to widen since then, and last year Macau saw its gaming revenue increase by 19% to $33.02 billion, marking its market’s first annual gain since 2013 as the government’s anti-corruption drive waned and high rollers returned to Macau’s casinos.

Meanwhile, Nevada casinos also generated a solid $26.2 billion in gambling revenue last year, beating the record high set prior to the start of the “Great Recession” in 2007. From that tally, Las Vegas Strip accounted for a whopping $17.7 billion of revenue, higher by 3.9% compared to the previous year.

Nevada Up 5.3% in June

Nevada’s casino market generated $1.04 billion in May, up by 5.3% year-on-year, and extending a winning streak that began after revenues dipped by 2% in January. The figure also means that the state’s gambling revenues have now topped the billion-dollar mark for four out of the past five months, with April ($954m) the lone exception. Helping to push the numbers higher was the slots segment, up by 7.1% to $670.2 million, and baccarat up by 16.1% to $120.8 million. Commenting upon the positive results, Michael Lawton, Senior Research Analyst for the Nevada Gaming Control Board, stated:

“The driver for this month was strong Strip baccarat win, which was up $21.4 million due to improved hold. Statewide slot win was up a solid 3.6 percent or $23 million due to continued increases in volume, up 2.5 percent. In fact, the state has recorded 15 consecutive months of increases to slot volume.”

In May, Las Vegas Strip saw its revenue increase by 6.3% to $581.5 million year-on-year, with that amount representing around half the statewide total. Impressive gains were also recorded elsewhere around the state, including in Washoe County (+7.1%), Reno (+4.6%), Sparks (+11.4%), North Lake Tahoe (+25.1%), Carson Valley (+8.6%), Elko (+7.6%), Wendover (10.1%) and Mesquite (+5.9%). Bucking the trend, however, was Downtown Las Vegas (-3.5%), and the Boulder Strip (-0.2%).

Macau Casinos Jump 12.5%

After Beijing launched its anti-corruption campaign in 2014, Macau’s casino market was badly affected with the $45 billion collected in 2013 falling to a five-year low of $28.93 billion in 2015. Since the government eased back on its crackdown, however, the industry has normalized, and June’s result of $2.78 billion now strings together 23 consecutive month of revenue gains for the island resort.

While the 12.5% gain posted in June undershot the 17-21% growth rate originally predicted by analysts, for the first half of 2018, Macau’s casino revenues currently stand at $18.66 billion, up by 18.9% compared to the first six month of 2017.

According to gaming analysts, the FIFA World Cup underway in Russia has been a major factor in reducing the number of visitors and spending in Macau, as many players have chosen to postpone their vacations to Macau and watch the month long soccer extravaganza at home, instead. Last month also had a difficult year-over-year comparison as last June revenues soared by a massive 26% to $2.49 billion, and commenting upon the overall solid results,
Union Gaming analyst Grant Govertsen explained:

“Without truly feeling the benefit of the newest supply and against a tough comp, we think the market is demonstrating its resilience with GDP+++ growth and would look for a rebound in growth rates as comps ease and as new supply begins to ramp more closely in line with historical trends later this year.”

Since Macau surpassed the Las Vegas Strip as the world’s biggest gambling center in 2006, the Special Administrative Region of the People’s Republic of China has seen the number of its casinos double. According to the latest data released today, the island of around 615,000 people now boats 41 casinos, of which 22 are owned by Sociedade de Jogos de Macau, followed by Galaxy Casino (6), Venetian Macau (5), Melco Crown (4), Wynn Resorts (2) and MGM (2).