Despite not-so-favorable forecasts, Nevada and Strip casinos have proven that going back to the 2019 gaming revenue levels would happen much sooner than 2024.
Analysts use 2019 as a point of comparison rather than 2020 because last year was marked by the pandemic. The gaming industry then plummeted to the weakest results since the 1990s. That also reflected on revenue taxes, dropping by $3.5 billion compared to 2019.
This year’s October was the eighth consecutive month in which total gaming revenue recorded by Nevada’s casino industry exceeded $1 billion, 9.2% up from 2019. The last time this state saw $1-billion gaming revenue for eight months in a row was October 2006–May 2007.
Michael Lawton of the Nevada Gaming Control Board explains that these results are due to high demand across markets, the loosening of travel restrictions, and the reintroduction of special events.
The number of Las Vegas visitors in October was the highest since the pandemic started, says the Las Vegas Convention and Visitors Authority. Over 3.39 million visitors were noted (+15.5% from September 2021, but -7.6% from October 2019).
October was a huge month for the Las Vegas Strip. It was responsible for approx. 85% of Nevada’s revenue total.
The Strip reported its second-biggest monthly revenue ever, $702.2 million, a rise of 30.4% when compared to the year before. The top monthly revenue is July’s $794 million. In comparison to 2019, the Strip registered an increase of 3.5%.
The recovery was seen in Las Vegas locals markets and downtown, as well. Downtown Las Vegas gaming revenues rose by 20.3% from 2019, whereas the locals gaming market grew by a modest 3%. Compared to their pre-pandemic levels, only two markets (Laughlin and North Las Vegas) dropped.
Moreover, October was the first time Nevada sportsbooks received over $1 billion in wagers within a month ($1.1 billion in total).
This didn’t exactly lead to a big payout for operators, as they saw revenues worth $48.3 million, growing by less than 1% from the same month of 2019. However, in the first ten months of 2021, sports betting revenue went up by 36.4% and wagers by 46.3% compared to the record-breaking year of 2019.
The numbers clearly show that the gaming industry has nothing to fear as long as the pandemic is on the decline.
