Las Vegas Strip revenue drops as New Jersey takes the top spot

With the ever-growing casino and sports betting industry gaining much ground, Las Vegas has found itself on the not so good side of it. There has been a decline in revenue in the past year with the report being announced in May 2019. The report saw Las Vegas Strip Gross Gaming Revenue (GGR) go down with 11%. The casinos in the strip won $981.8 Million in May 2019 which was less by $22.2 Million which was reported in May 2018 signifying a 6% drop.

In the figures released by Nevada regulatory body, Nevada Gaming Control Board (NGCB), saw the country’s richest gambling state recording a casino revenue drop of 1.9% in the past year. 

Baccarat was the biggest casualty with the revenue won depicting a more than 55% loss. The table game was able to win $53.85 Million and the reasons cited for this was the poor win percentage which was below than 8%.

Blackjack Hand Double Ace's
Blackjack Hand Double Ace’s

For Blackjack games, the revenue won depicted a 14.8% loss. The game saw the Strip casinos winning $67.4 Million. There was, however, a bright spot to it and it was on the Penny Slot machine which won a revenue profit of 6.3% by winning $117.8 Million. 

The 6% Nevada loss in the GGR together with the 11% Strip’s loss represented the largest monthly declines. And for Strip’s sportsbooks, May 2019 represented the sixth consecutive monthly revenue loss.

Sportsbooks losses

The losses did not stop at the casino games only. After the sports betting ban was lifted by the US Supreme Court, Nevada was able to take some of the sports bet, however, this was non-comparable to other legalized states who took more.

For sportsbooks in the New Jersey, by May 2019, there were printed ticket slips worth $318.9 Million as opposed to Nevada sportsbook that had printed ticket slips worth $317.4 Million. This had been foreseen by the New Jersey Governor in April 2019 where he stated, ‘Nevada is clearly in our sights. We can overtake it.’

New Jersey | One of the Sportsbook
© New Jersey | One of the Sportsbook

Ray Lesniak, Former New Jersey State Senator, who was vocal in the fight for legalizing sports betting said that he was not surprised New Jersey sportsbooks overtook the Nevada ones. In his statement where he termed New Jersey as ‘hotbed of sports activity’, he said that for a long time he had been convinced that Northeast and New Jersey was an active sport betting ground citing the reasons being the love of sports by the people and looking forward, Lesniak stated that New Jersey was on its way to ‘becoming the Las Vegas of the East Coast.’

For Nevada sportsbook, there were declines in the revenue won as compared to 2018. It saw Baseball winning $7.7 Million and Basketball winning $4.5 Million. The sportsbooks in Nevada won $11.26 Million out of the ticket slips printed.

Michael Lawton, Nevada Gaming Control Board senior analyst, would note that if Baccarat was removed, then the state’s industry would appear slightly healthier. For last year, casinos in Nevada won $11.9 Billion which depicted the third-best year of the state’s history.

Geoff originally contributed to VegasSlots on a freelance basis before joining full time. Being great at gambling like the rest of the team, he understands and has the ability to create something new, even if its old. He’s also spends his spare time on FPS games.

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