Last May was the biggest May ever for the Silver State gaming sector, with Nevada casinos generating $1.32 billion in gross gaming revenue (GGR).
Following an almost 2% year-over-year decline in March, when some analysts were quick to warn of an imminent downturn, Nevada's casinos recovered with impressive April and May results.
Revenue for April increased by over 7% to $1.24 billion compared to 2023. May Win reached a record high for the month, up 2.5 percent.
The larger victory was supported by table games and sports betting, with oddsmakers and felt accounting for $434.3 million, which is around 6% more than in May 2023. The hold of slots increased by 1% to $886.1 million.
Of the $514.4 million wagered on professional and collegiate sports, $36 million was retained by the oddsmakers. The sportsbook victory was a 20% increase over May 2023.
Fuel Strip for Events
The Strip and Las Vegas are the lifeblood of Nevada's casino sector. Last month, the most well-known casino corridor in the world brought in $742.5 million in gross gross revenue, which was 3.7% more than the same month the previous year.
The robust gaming outcome was attributed to a robust event calendar and the continued resurgence of significant conventions and exhibitions. Southern Nevada is kept busy with significant performances by Justin Timberlake, The Rolling Stones, Pearl Jam, and Adele, Garth Brooks, and Carrie Underwood, according to Michael Lawton, the NGCB's senior economic analyst.
May also saw the beginning of JCK Las Vegas, the WasteExpo, the International Spa Association Conference, the ABC Kids Expo, and RECon 2024, among other events.
Harry Reid International Airport achieved a new traffic milestone for May as a result of the A-list performances and sizable conventions. According to airport officials, LAS handled over 5.2 million people entering and departing last month, which was the most in the state's history and a 5.2% premium over May 2023.
Last month, there were around 351,400 international passengers, a 22% increase from the previous year. At 4.8 million, domestic traffic increased by more than 4%.
Only Spirit, out of the major five airlines in Las Vegas (Swift, Spirit, Delta, American, and United), saw a decline in passenger volume into and out of Southern Nevada. Southwest continued to be the most popular airline, carrying over 1.92 million passengers, a 9% increase from May 2023.
Nearing 40 Months, $1B Run
In May 2024, Nevada's GGR surpassed $1 billion for the 39th straight month. Prior to the historic run, the longest 10-digit GGR streak in Nevada was eight months, from October 2006 to May 2007.
Although post-pandemic momentum has been maintained in Nevada and Las Vegas, the GGR declined for the first time in eight months in March. Despite the fact that April and May brought monthly year-over-year GGR back to black, gaming analysts are warning investors that a slowdown may be on the horizon.
"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.”
On a 16% hold rate, GGR from baccarat, the game most popular with Asian gamblers, dropped 5.5% in May to $126.4 million. With a roughly equal hold rate, the May 2023 baccarat win reached $133.8 million, indicating a decline in baccarat volumes compared to the previous year.
