Nevada’s gaming industry capped off the first half of 2024 with a royal flush, striking it big in Las Vegas while facing some uphill battles in the north. The Silver State raked in a whopping $1.28 billion in gaming revenue in June, marking a 3.2% uptick from June 2023, as per data from the Nevada Gaming Control Board.
Las Vegas Strip Stands Tall with 4.2% Revenue Spike
If Las Vegas were a poker player, it would have just won with a full house. Local casinos significantly fueled this surge, reporting a solid 6.2% rise in June and a 9% bump for the second quarter. Meanwhile, The Las Vegas Strip held its own remarkably well, with revenue soaring to $758.5 million, notching a 4.2% year-over-year increase and a 4.8% boost for the second quarter.
Downtown Las Vegas also cashed in with a 5.8% climb to $66.2 million. On the flip side of the coin, The Boulder Strip and Mesquite experienced mild gains, while Laughlin stumbled slightly. Up north, however, it was a tough beat, with Reno, Sparks, and South Lake Tahoe all reporting steep revenue drops.
Michael Lawton, a senior economic analyst for the Control Board, pointed out that an extra weekend day in June 2024 compared to last year certainly stacked the deck in favor of these gains. Las Vegas played host to nearly 3.5 million visitors in June, a 1.8% rise from the same month in 2023.
Strong Weekend Occupancy Marks Las Vegas; Midweek and Hotel Closures Present Challenges
Overall hotel occupancy in June hit a minor speed bump, sliding to 85.2%. Yet, the weekend was a different story, painting a rosy picture with robust occupancy at 91.3%. Midweek saw a small dip to 82.6%, attributed to a 7.9% drop in convention attendance due to scheduling tweaks. However, the average daily room rate raised the stakes by 6.4%, rising to $176, with revenue per available room climbing 6% to nearly $150.
Heads-up, folks: the forthcoming closures of The Mirage and Tropicana hotels are projected to shuffle the deck by cutting room availability on the Las Vegas Strip by nearly 5%. This scenario is anticipated to push rates further up. As CBRE’s director of equity research John DeCree predicted, this could be a golden ticket for mid-tier hotels, sparking an earnings bonanza as demand shifts and average daily rates climb.
The Las Vegas Strip’s winning streak was supercharged by a stellar events calendar. Star-studded performances from Bruno Mars and Lady Gaga, a high-stakes boxing match, thrilling soccer encounters in the Copa America Tournament, the grand spectacle of the NHL Draft, and electrifying UFC bouts—all played a part in a sparkling 4.3% boost in the Strip’s gaming take.
June also marked the end of Nevada’s fiscal year, closing the books with a record-smashing $15.8 billion in gaming revenue—a 4.4% bump from the previous fiscal year. This triumph marks the third straight year of record-breaking gaming revenue for the state. The Las Vegas Strip, in particular, saw its gaming revenue soar by 6.1% to a staggering $9.1 billion, accounting for a lion’s share of 57.4% of the state’s total kitty.
With the cards dealt and chips stacked, Nevada’s gaming industry finds itself in a vibrant yet complex landscape—a tale of both triumph and tribulation, dominated by the shimmering allure of the Las Vegas Strip.
