The most recent report by the Nevada Gaming Control Board (NGCB) shows GGR in the state settled at $1.3 billion in July of 2024, representing a 7% year-on-year drop in revenue. While this drop might sound like a red warning, some experts believe such a decrease should be perceived as seasonal rather than a part of any growing trend.
July 2023 Set Unfair Expectations
Even with the decline, July 2024 extended Nevada’s remarkable run of GGR exceeding $1 billion to 41 months. However, the decline from July 2023, the second-highest GGR month in Nevada’s history at $1.4 billion, has prompted some analysts to examine the factors behind the drop more closely, looking for forming trends.
Michael Lawton, senior economic analyst for the NGCB, shared his perspective. He pointed out that unusually high table hold percentages in 2023 inflated financial results, resulting in an unfair comparison to an otherwise successful July 2024. Lawton was confident that this drop in revenue would not persist in the following months and remained optimistic.
I would not call this the start of any downturn. This was a very difficult comparison as July 2023 was the second highest win total in state and Strip history.
Michael Lawton, NGCB senior economic analyst
The Las Vegas Strip, which often sets the tone for Nevada’s gambling sector, perfectly highlighted these observations. The area posted $709 million in GGR, down 15% from July 2023. The Strip’s table-game metrics, especially baccarat, were down across the board, with baccarat alone seeing a 66% drop in win, amounting to $64 million less than last year.
Nevada’s Gambling Sector Still Has Room for Growth
Fortunately for the Strip, slot machines provided some relief. The multi-denomination slot category was the only one of nine tracked by the NGCB to post an increase, a 23.5% rise in GGR to $297.5 million. This boost helped stabilize the overall slot revenue, preventing a more significant decline.
While the Strip struggled, other southern Nevada markets fared significantly better. The areas surrounding Vegas posted $171 million in GGR, up 19% year-over-year. This locals’ market has been on a hot streak in 2024, recording consistent, year-over-year gains. Downtown Las Vegas, Mesquite, and the Boulder Strip also came in positive, but northern Nevada markets like Reno and Sparks struggled.
Statewide, sportsbooks reported a 2% increase in revenue, bringing in $25.8 million in July 2024. Mobile wagering contributed significantly, rising 38 % year-on-year and contributing $19 million. As Nevada heads into the latter half of 2024, it will be interesting to see whether the billion-dollar streak continues and how emerging revenue drivers like mobile sports betting will impact its gaming revenue future.
