Nevada Gaming Revenue Declines On September

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Nevada Gaming Revenue Declines On September

Nevada's Gaming Revenue declines this September compared with $1.01 billion won the same month in 2005, Nevada casinos won $985 million, a decrease of 2.7 percent on the same month this year.

During Septembers every year, almost every area of Nevada reported year-over-year decreases in gaming revenues. The Strip gaming win dropped 4.3 percent from $539.4 million a year ago to $516.3 million this year. From $835.3 million in September 2005, Clark County's casinos reported $807.8 million in gaming win, down 3.3 percent.

Falling 8.4 percent to $47.4 million, Downtown casinos' gaming win declined for the fourth straight month this September. Also a couple of declines from casinos in Laughlin with 5 percent, North Las Vegas casinos with 14.8 percent, Boulder Strip casinos with 16.7 percent and at Mesquite casinos, revenues fell 16.7 percent.

"Balance of Clark County" area was exempted for having won of $106.6 million, up 23.1 percent compared with $86.6 million a year ago including gaming revenues collected at the South Point and Red Rock Resort, two casinos not open in September 2005.

In a note to investors, Morgan Joseph gaming analyst Adam Steinberg said, "In general, the locals market reported solid gains, as would be expected given the addition of Red Rock and (South Point)."

"Downtown continued to suffer because of the closure in February of the Lady Luck and general softness in the market," stated Stienberg.

Mayor Oscar Goodman was upbeat about the area's prospects, despite downtown's numbers saying that a $100 million renovation of the Golden Nugget would be a boost.

According to Joe Geff, Bear Stearns gaming analyst, he didn't think the off month would affect the stock prices of the major casino operators.

According to Frank Streshley, Gaming Control Board senior research analyst, September 2006 had a tough comparison with September 2005 going in. The $1.01 billion won last year was a 9.4 percent increase from September 2004.

Statewide win from table games as the beneficiary of the casinos' off month, was $331.7 million, down 8 percent compared with $359 million last year. Blackjack tables remitted $113.5 million to the total, which declined 8 percent from $122.9 million in the month last year. Strip casinos dipped almost 10 percent blackjack revenue in September.

The casinos' win from craps was down 1.5 percent while the gaming revenues collected from mini-baccarat, a version of the card game played on a table similar to a blackjack table, were down 52.6 percent, Statewide.

The money won from sports bettors, was down 22.6 percent from a year ago with $22.4 million in September.

"It looks like the sports books had a tough start to the NFL season," Streshley said of wagering on the first month of regular-season games for professional football.

Compared with $641.5 million a year ago, the casinos take statewide from slot machines was also off slightly with $640.7 million.

By September this year, Gamblers statewide wagered $14.1 billion in September including $11.7 billion on slot machines up by 4.1 percent, and $2.4 billion on table games, almost 7 percent down from September 2005.


David M. Bedingfield