With $1.32 billion in gross gaming revenue (GGR) from Nevada casinos this month, it was the greatest May ever for the Silver State gaming sector.
Following a nearly 2% year-over-year decline in revenue in March, which prompted several experts to warn of an imminent downturn, Nevada's casinos rebounded with impressive results in April and May.
Revenue for April increased by over 7% to $1.24 billion when compared to 2023. May win increased 2.5%, setting a new monthly high.
The larger victory was supported by table games and sports betting, as oddsmakers and felt brought in $434.3 million, an increase of almost 6% from May 2023. The hold on slots increased by 1% to $886.1 million.
Of the $514.4 million wagered on collegiate and professional sports, the oddsmakers kept $36 million. The sportsbook victory was a 20% increase from May 2023.
Fuel Strip Events
Las Vegas and the Strip are the life and death of Nevada's casino industry. The most well-known casino corridor in the world brought in $742.5 million in gross gaming revenue last month, 3.7% more than the same period the previous year.
The robust gaming outcome was attributed to a robust schedule of events and the continued return of significant conventions and exhibitions. Southern Nevada is kept busy by huge performances by Justin Timberlake, The Rolling Stones, Pearl Jam, and continual residencies by Adele, Garth Brooks, and Carrie Underwood, according to Michael Lawton, senior economic analyst at the NGCB.
In addition, May saw the beginning of JCK Las Vegas, the WasteExpo, ABC Kids Expo, International Spa Association Conference, RECon 2024, and many other conventions.
A new traffic milestone for May was reached by Harry Reid International Airport as a result of the A-list concerts and sizable conventions. More than 5.2 million people arrived and left LAS last month, according to airport officials. This represents a 5.2% increase from May 2023 and the most travelers to ever transit through the state in May.
The number of foreign passengers increased to approximately 351,400 last month, a 22% increase from the previous year. Over 4% more passengers flew domestically, totaling 4.8 million.
Only Spirit, out of the major five airlines in Las Vegas (Swiss, American, Delta, and United), saw a decrease in passenger flow into and out of Southern Nevada. With more over 1.92 million passengers, a 9% increase from May 2023, Southwest continued to hold its position as the leading airline.
$1 billion run is almost over
For the 39th time in a row, Nevada's gross domestic product (GGR) exceeded $1 billion in May 2024. Prior to the extraordinary run, the longest 10-digit GGR streak in Nevada history lasted eight months, from October 2006 to May 2007.
Although Nevada and Las Vegas have continued to experience growth since the outbreak, March saw the first fall in GGR from the previous year in eight months. Analysts that follow the gaming industry are warning investors that a slowdown may be coming, even though monthly year-over-year GGR went negative in April and May.
"The one constant has been the high-end strength, which is best evidenced by the baccarat segment, which has essentially carried GGR to positive comps over the last 12 months period,” Deutsche Bank analyst Carlo Santarelli wrote in April. “We believe this segment has reached a plateau, and despite competition for this customer continuing to heat up, is likely to fade, thereby exposing more clearly, the other underlying stagnation that is present in the market today.”
The greatest game among Asian gamblers, baccarat, saw a 5.5% decline in GGR in May, coming in at $126.4 million with a 16% hold rate. Volumes in baccarat dropped compared to the previous year, with a $133.8 million baccarat win in May 2023 on a hold rate that was almost the same.