LAS VEGAS, NEVADA – JUNE 04: The Fountains of Bellagio will be launched for the first time since the resort closed on March 17 due to the coronavirus pandemic (COVID-19) on June 4, 2020 in Las Vegas, Nevada. The fountains went out twice just before the doors were opened; First the song “Simple Gifts”, a tribute to frontline workers around the world, and then “Viva Las Vegas” to celebrate the people of Las Vegas. Hotel casinos across the state are opening today as part of a gradual reopening of the economy with social distancing guidelines and other restrictions. MGM Resorts International today reopened Bellagio, New York-New York Hotel & Casino, MGM Grand Hotel & Casino and The Signature. (Photo by Ethan Miller / Getty Images)
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Las Vegas is still on a winning streak.
Las Vegas Strip casinos broke an all-time quarterly record in the third quarter by generating $ 2.1 billion in gambling revenue, according to figures from the Nevada Gaming Control Board on Wednesday. The Strip surpassed the previous record of $ 1.8 billion set in the fourth quarter of 2006.
Michael Lawton, a senior research analyst for the Nevada Gaming Control Board, says the Las Vegas recovery is in full swing.
“It’s old news that the Strip is lagging – it’s officially topped pre-pandemic numbers,” Lawton says.
The third quarter started with a bang when Nevada hit $ 794 million.
Sin City’s gambling revenues are also up 0.6% this year to date compared to the same point in 2019. Revenues from The Strip reached $ 604.6 million in September, an increase of 9.9 % from September 2019 before the pandemic-induced recession hit the city.
Brendan Bussmann, Partner and director of government affairs at Global Market Advisors, who covers the gaming industry, says he’s not surprised.
“That makes sense – there was a lot of catching up to do and the third quarter opened with events in Vegas like Garth Brooks, Bruno Mars and the fight against McGregor and ended with the Raiders,” says Bussmann. “It shows that Vegas is not only back, it’s resilience as well.”
Nevada also continues to set records nationwide. In September, the state raised $ 1.2 billion in gaming revenue, marking the seventh consecutive month with revenue of more than $ 1 billion. Gambling revenue increased 9.4% in September compared to the same month in 2019.
The current seven-month rally is the second longest streak of over $ 1 billion in monthly gambling revenue the state is generating. The state’s record for monthly gambling revenues of over $ 1 billion is eight months, recorded from November 2006 to May 2007, just before the Great Recession hit the economy.
Bussmann assumes that the recovery will continue cautiously for the time being.
“I don’t see it stop in the short term, but I want to see what happens to the economy,” he says.
“The two biggest challenges going forward are a potential Covid disease resurgence that would lead to closings and the other concern is with the US economy. With soaring fuel prices, rising inflation and supply chain costs, these can constrain consumers’ wallets and affect domestic travel. ”
But two things that can provide a boost are the return of international travel to Las Vegas for vaccinated foreigners in November and the continued surge in business travel and conventions, Bussmann says.
There are a few factors driving the rally, especially in Las Vegas. Baccarat, which averaged 17.6% of total strip earnings between 2016 and 2019, has declined to 13% of total earnings in 2021. But slot machines and sports betting have caught up with the slack.
“Playing turntables fills that void,” Lawton says. “This third quarter represents the highest slot win in The Strip’s history.”
Total slot machine profits at Vegas casinos in September reached $ 355.3 million, up 15.6% from September 2019. In the quarter, slot machines hit an all-time record of $ 1.1 billion. That is more than the previous record for the second quarter of this year of $ 1.04 billion. (The previous record before this year, $ 897.5 million, was set in the third quarter of 2007.)
Sports betting also makes its contribution across the state. Sports pools raised $ 54.2 million in September, the third highest sum ever. The $ 786.5 million decline in lap pools hit a new record last year. Mobile sports betting hit $ 495.1 million, with the state bringing in $ 16.7 million.
Following the record breaking numbers in July, Colin Mansfield, an analyst with Fitch Ratings, said the recovery schedule has not changed and Fitch is still forecasting a full recovery in Vegas in 2023. In a statement released last month, Macquarie Research cited the outlook for Las Vegas as “positive” and predicts Vegas will recover fully by 2022.
October has done well and November with big events like the Rolling Stones at Allegiant Stadium, the Canelo Alvarez middleweight championship bout and a major auto show could also bring positive results for Vegas and the state.
“Right now there is nothing that tells me that we are not going to continue with this $ 1 billion monthly game win,” says Lawton.
