Inside Gaming: Nevada Revenue Slips in July, WV Offers Sports Betting
Table Of Contents
This week's Inside Gaming begins with the latest monthly revenue numbers from Nevada, tells of West Virginia joining the sports betting game, and briefly looks in on the big opening of a major new casino in Massachusetts.
Nevada Gaming Revenue Down in July, Strip Down 5.75 Percent
In July Nevada casinos experienced their first decrease in gaming revenue in six months, according to the most recent monthly report from the Nevada Gaming Control Board.
The overall decline was small, a dip of just 0.16 percent to $996.4 million compared to the almost $998 million win amount from July 2017. Since being down just over 2 percent in January 2018, Nevada had enjoyed five straight months of increases, including a 4.17 percent increase in June.
Casinos on the Strip experienced a more significant decrease of 5.75 percent year-over-year, dropping from $565.6 million a year ago to $533.1 million this July.
That decline on the Strip was offset, however, by increases elsewhere in the state. Revenue was up almost 15 percent in casinos in North Las Vegas, over 18 percent for casinos in the Boulder Area, and over 25.5 percent in the South Shore Lake Tahoe Area. Downtown Las Vegas casinos were also up over 8.2 percent.
According to Michael Lawton, senior research analyst with the Tax and License Division of the NGCB, the decline was "primarily due to table games, which was the result of a lower hold compared to last year," reports VEGAS INC.
"Gaming table win (statewide) was off about $37.2 million, or 10.2 percent," explained Lawton. "Pretty much all the table games did not hold very well."
Baccarat revenue, for example, was down 16.4 percent statewide and just over 18 percent on the Strip. Meanwhile revenue from slots was up 5.6 percent statewide and just under 3 percent on the Strip.
According to CDC Gaming Reports, the decline on the Strip (where the casinos represented 53 percent of the entire state's total revenue) was anticipated somewhat as "Gaming companies — notably Caesars Entertainment and MGM Resorts International — telegraphed the punch earlier in [the] month during quarterly conference calls, saying lack of events and declines in room rates softened the numbers in the third quarter."
The Fourth of July holiday falling on a Wednesday rather than on or near the weekend was another factor affecting revenue totals for the month cited by Deutsche Bank gaming analyst Carlo Santarelli, notes CDC Gaming Reports.
West Virginia Latest State to Offer Sports Betting Since SCOTUS Ruling
Yesterday saw the first legal sports wager accepted in West Virginia at the Hollywood Casino at Charles Town Races. The launch of sports betting in the state came a couple of days ahead of schedule.
According to Legal Sports Report, after testing systems earlier in the week, Hollywood Casino was able to go ahead and start accepting bets prior to the previous target date of Saturday. After the "soft opening," there will still be an opening ceremony marking the launch on Saturday at the casino's new sportsbook at 11 a.m.
West Virginia becomes the fourth new state to offer legalized sports betting since the U.S. Supreme Court ruled in May that the earlier federal ban on states other than Nevada being able to offer sports betting was unconstitutional. Delaware was the first state to do so in early June, followed by New Jersey a couple of weeks after that and Mississippi in August.
Delegate Jason Barrett of Berkeley placed the first wager on Thursday, betting $50 on the West Virginia University Mountaineers at 60-to-1 to win the college football national championship.
Barrett was part of the legislative process that saw West Virginia pass sports betting legislation a couple of months ahead of the SCOTUS decision, thereby positioning the state to take advantage once the rulling arrived.
"We have really done it right in this state," said Barrett at Hollywood Casino yesterday reports WV Metro News. "Certainly Pennsylvania and others, if it's going to be successful in their states, they need to look at what we did and model after us," said Barrett.
Five casinos in West Virginia have each been charged $100,000 licensing fees to offer sports betting, with a 10 percent tax levied on adjusted gross receipts.
State lottery officials say the other casinos in the state should be offering sports betting by mid-to-late October.
MGM Springfield Enjoys Successful Opening Weekend
MassLive reports the new MGM Springfield casino enjoyed a big initial weekend after its grand opening last Friday.
On Wednesday Michael Mathis, president of MGM Springfield, described the casino's first days of operation as "a tremendously successful opening weekend, exceeding our expectations by hosting more than 150,000 visitors in just our first three days."
MGM expects average daily attendance at the casino to be 15,000.
Covering 2 million square feet, MGM Springfield features 125,000-square-feet of gaming space including 2,550 slot machines and 120 tables. Other amenities include an eight-screen movie theater, a 10-lane bowling alley, an 8,000-square-foot pool, a spa, a TopGolf Swing Suite with a three-simulator lounge, and a skating rink.
The first outdoor concert at the casino plaza featured Dropkick Murphys and was sold out. This Saturday, September 1, Stevie Wonder will be performing at the 8,000-seat MassMutual Center.
Photo: "Las Vegas Strip lights at night," EconomicOldenburger, CC BY-SA 4.0.
