Gaming win continues to fall; down 9 percent

Share this: Email | Facebook | X

For the 20th month in a row, gaming win fell in August compared to the same month a year earlier.

But while a 9.3 percent decline may not look good, it's the first single-digit drop in total win since May.

Casino operators credited a huge increase in baccarat win as premium international players returned in force to Southern Nevada. Total baccarat win of $109.5 million was up 48.6 percent from August 2008.

Statewide total win was $847 million.

South Lake Tahoe, battered not only by the recession in California but two major Indian casinos siphoning off customers in that state, had its worst August since Nevada began keeping monthly win statistics in 1983. Total win by the State-line casinos was down nearly 30 percent to $21.9 million.

By contrast, South Shore's August win in 2000 before the first of those casinos, Thunder Valley, opened was $44.1 million.

The Carson Valley Area, which includes Carson City and valley casinos in Douglas County, saw a 17 percent drop in win. Coupled with the 8.8 percent decline in August 2008, that brought the total win for Carson down to just $8.7 million.

Star Anderson, general manager of the Carson Nugget, said she is seeing some signs the area is at the bottom of the trough and may soon start recovery.

"It looks like retail sales were up in September, just a little bit. It's no big deal because last year was so bad, but it's still up from last year."

Anderson said the economy will return, that it's just a matter of time. Until then, the Nugget is focusing on maintaining its market share and holding on to customer loyalty.

"There are people out there willing to spend money and have money to spend. It's how do we keep them here at the Carson Nugget?"

She said the recession has been good for business in some ways, making the casino operation more efficient and teaching managers to better prepare for downturns in the future. In retrospect, she said, they should have seen trouble coming sooner.

"We should have known something was up," she said.

North Shore casinos at Tahoe suffered just as did those at South Shore, seeing a drop of 24.7 percent to just $3.4 million for the month. That is on top of a 7.6 percent drop in August 2008.

The combination of California's recession and Indian casinos are also taking a toll on Washoe County casinos which reported a decline of just under 21 percent. August is normally one of the Reno area's strongest with Hot August Nights and other special events but this year's total win of $73.9 million is its smallest August since 1989.

In the past 20 years, the Reno area has lost a half dozen large or mid-sized casinos including the Flamingo, Fitzgerald's and the Comstock.

Gaming Control Board Tax and License chief Frank Streshley said without those high-end baccarat players, August would have been another double digit decline. He said whether those international players show up again in September and October is uncertain.

The month was hurt by an unfavorable calendar. Last year, most of the Labor Day weekend was in August. This year, it fell in September, which Streshley said should help that month's numbers.

"It's been a very tough summer," he said. "There are less people coming and their budgets are substantially less than two or three years ago."

Streshley said it may take a lot longer for consumer confidence to recover - both for the out of state tourist and the local player.