In this May 21, 2020, file photo, chairs have been removed at some electronic slot machines to maintain social distancing between players at a closed Caesars Palace hotel and casino in Las Vegas.
AP Photo/John Locher
(Kimberly James) – Summers may be hot in Las Vegas, but the gaming industry and the Strip properties revenues saw a significant decline during July and August, having nearly a $300 million impact on the state.
Nevada casinos’ house winnings were $743 million in August, down 22% compared to last year’s same time, The Hour reported that July’s $756 million winnings were a 26% decrease from July 2019.
Las Vegas Strip properties reported a 39% decline in winnings in July and August, adding to the sluggish sector.
Similar to industries nationwide, the Las Vegas Strip was shuttered as government leaders took steps to slow the spread of COVID-19.
“Prior to the pandemic, during [the] fiscal year 2019, gaming tax collections accounted for approximately 20.4% of the state’s total general fund collections,” Michael Lawton, senior research analyst at Nevada Gaming Control Board, told Center Square. “Due to the suspension of gaming operations, the state’s collections from gaming decreased from $875.4 million to $581.6 million in fiscal year 2020. The impact of this $293.8 million, 33.6%, decrease has caused a significant negative impact to the state’s budget.”
Casino taxes are second to sales taxes as a percentage of the state budget.
Lawton said since reopening in June, gaming revenues across the state are down 31.6%. Casinos now are being supported by a mix of local customers and primarily drive-in business from regional markets.
“The state’s largest market, the Las Vegas Strip, is down 47.3% for the same period and, unlike other markets, it relies on air travel, mid-week business customers and large scale entertainment events to drive visitation,” Lawton said. “As a result, we feel that until this type of customer returns, the Strip will continue to lag behind other submarkets in the state.”
Conventions, sporting events, trade shows and concerts may be one step closer to returning, which would affect the Vegas gaming sector.
Gov. Steve Sisolak recently announced lifting the 50-person cap on public and private gatherings.
Smaller venues will be able to host up to 250 people. Larger venues that traditionally hold more than 2,500 people can submit requests to operate at 10% capacity.
“Due to the Strip accounting for over 50% of statewide gaming win, the gaming revenue numbers we are currently recording statewide will not change their current trajectory until the Strip is able to recover,” Lawton said.
By
Facebook
Twitter
Pinterest
RSS