The latest revenue report from the Nevada Gaming Control Board (NGCB) reveals that the state generated $1.3bn (€1.2bn/£984m) in gross gambling revenue (GGR) in July, marking a 7% decline compared to the previous year. Despite this slight decrease, Nevada managed to maintain its streak of 41 consecutive months with over a billion dollars in revenue.
However, the drop in revenue for July 2024 was particularly significant when compared to the same month in 2023, which saw the state record its second-highest total ever at $1.4bn. This led to disappointment among industry insiders and analysts who had expected better results for the year.
The NGCB noted that the $97m year-over-year decline in statewide GGR was the largest since November 2022, highlighting a concerning trend for the state’s gambling industry. The Las Vegas Strip, in particular, reported a 15% decrease in GGR, with table games suffering the most significant losses, including a 66% decline in baccarat win.
Slot metrics also showed a decline, except for the multi-denom category, which saw a 23.5% increase in GGR. Despite some positive performances in certain sectors, the overall revenue for the state took a hit in July.
The situation in Nevada mirrored a similar trend in Atlantic City, where GGR also dropped by 6.1% in July. This renewed discussions about revenue cannibalization, especially in light of New Jersey’s booming online gambling sector, which saw a 26% increase in revenue compared to last July.
While the Strip struggled, other markets in southern Nevada fared better in July. The locals market reported a 19% increase in GGR, continuing its winning streak for the year. Downtown Las Vegas, the Boulder Strip, and Mesquite also saw gains in revenue, bucking the overall downward trend in the state.
In contrast, northern Nevada markets faced challenges, with most regions reporting flat or decreased year-over-year revenue. North Lake Tahoe was the only exception, but its small size meant that its $3.6m revenue was inconsequential in the grand scheme of things. Reno and Sparks saw declines of 4% and 11%, respectively.
On the sports betting front, Nevada’s state sportsbooks saw a 2% increase in revenue compared to last year, with mobile wagering contributing significantly to the total. Mobile wagering revenue was up by 38%, suggesting a growing trend towards online betting in the state.
Overall, the July revenue report painted a mixed picture for Nevada’s gambling industry, with some sectors thriving while others struggled to maintain previous levels of revenue. The industry will be closely watched in the coming months to see if this trend continues or if improvements are on the horizon.
