There was a presumption that this would be the case since the start of the year, but either way the number is staggering. Casinos across Nevada brought in $14.8 billion in gambling revenue in 2022. But the story behind the number makes it even more shocking. Long before it was known that it would be a record calendar.
Nevada had actually eclipsed the 2021 record by November 2022, but December was a record-setter as well, with casinos reporting $1.3 billion in revenue. “December came in much stronger than we had anticipated,” says Lawton. The Las Vegas Strip set an all-time monthly record during the last month of the year with $814 million, which is up 25% compared to December 2021. Looking at the final month of 2022, revenue in December reached $1.31billion, an increase of 13.9% on the same month in 2021 and also 7.4% ahead of November 2022.
The specialists explain the event without a doubt. “The year wasn’t a surprise, we knew we were going to set a record for a couple of months,” says Michael Lawton, senior economic analyst at the Nevada Gaming Control Board. “It’s a great year in terms of comeback and showing the strength of our gaming-tourism industry.”
In fact, Nevada has experienced 22 straight months of $1 billion or more in gaming revenue. During the streak, the state’s monthly gaming revenue total has surpassed Nevada’s previous statewide record of $1.16 billion set in October 2007 in 15 different months, including July 2021’s current single-month record of $1.36 billion.
TOURISM AND VISITORS
The state of Nevada, but particularly Las Vegas, is a land that thrives on visitors. Whether for tourism or business opportunities, many times the explanation of the numbers is in the social and economic movement. But in 2022 there was something beyond this equation.
There are several forces that drove Nevada’s record year. A stocked events calendar and lingering effects of pandemic stimulus checks helped drive tourists to the Las Vegas. But the strongest factor was a “steady demand” for gambling, Lawton says, by “resilient customers” who consistently chose to go to Vegas in the face of inflation, recession fears and rising fuel prices.
A statement from the Nevada Gaming Control Board read: “Nevada has continued to benefit from the surging demand for leisure travel domestically and internationally and a healthy local economy experiencing record employment levels.” So it is not only the movement of people and their needs, but also the structure of the economy and its consequences.
Visitation to Las Vegas fell just short of 39 million in 2022, 20.5 percent ahead of 2021, but still trailing the pre-pandemic total of 42.5 million visitors in 2019 by 8.7 percent, according to a report released Tuesday by the Las Vegas Convention and Visitors Authority. December saw more than 3.3 million visitors to Las Vegas, an increase of 10.1 percent from a year earlier.
Convention attendance, which was severely diminished after COVID-19 caused cancellations throughout 2020 and 2021 and reduced attendance figures for shows that returned in 2022, fell just short of 5 million. LVCVA officials expressed confidence the 25 percent drop from 2019’s 6.6 million convention attendees would be made up in 2023.
In 2022, overall hotel occupancy reached 79.2 percent, with 89.3 percent occupancy on weekends. Average daily room rates on the Strip in December reached $187.90, up 38 percent from 2019. For the year, average daily room rates were $182.11, 27.2 percent higher than in 2019.
THE STATE PARTS
The lights don’t shine the same way in Nevada. There is a part of the state that is not only essential when it comes to measuring income for the regional economy, but also to define the size of the entertainment industry.
The Strip is by far the most successful gaming market by revenue in the country and No. 2 Atlantic City isn’t anywhere close. In 2022, the Strip generated $8.24 billion in gross gaming revenue. Next on the list was Atlantic City, which reported $2.79 billion that year, followed by Baltimore and Washington D.C. and the casinos in Maryland and West Virginia with $2.17 billion in gaming revenue.
But not all of the industry’s business in Nevada comes down to The Strip. Among the top 20 gaming markets in the United States, three more in Nevada made the list. The Boulder Strip ranked 10th in the country with revenue of $967 million. Reno-Sparks checked in at No. 12 with $911 million and Downtown Las Vegas was 17th at $787 million.
In addition to the Strip, nine of Nevada’s 18 submarkets had record revenue totals for 2022, including downtown Las Vegas and the combined areas that make up the Las Vegas locals casino sector. Clark County saw gaming revenue jump 11.8 percent in 2022 to almost $12.8 billion – which would match the 2007 statewide gaming revenue total that stood as an all-time record until 2021. Downtown Las Vegas casinos recorded $880.2 million in revenue, up 4.5 percent from a year ago, and the combined locals market topped more than $2.9 billion, an increase of 2.4 percent.
The Boulder Strip, which includes casinos in Henderson, was the state’s only region that saw gaming revenue decline in 2022, though the $966.7 million figure was a less than a 1 percent dip from 2021’s all-time record of $967.5 million. Lawton suggested the market’s revenue was hurt by the timing of slot machine revenue collections because the month ended on a weekend. “The Boulder Strip market remains very healthy,” Lawton said.
Northern Nevada’s major gaming markets didn’t set records in 2022 but exceeded their 2021 totals. Washoe County hit more than $1 billion for the second year in a row, a 2.4 percent increase. Reno casinos grew revenue by 2.1 percent to $743.8 million. Sparks, which saw the opening of Legends Bay Casino in August, grew gaming revenue by 3.6 percent to $172.8 million.
WHAT ARE YOU BETTING ON IN NEVADA?
The gaming offer in Nevada is as broad as it is solid. Slot machines generated $10 billion in revenue last year across Nevada. Slot revenue made up 67.4% of total gaming win. Penny slots generated 9.8% of total slot win with $3.59 billion. Table games, at the same time, set an annual revenue record for the category with $4.83 billion, a 15.3% jump in 2022 compared to 2021.
Other possibilities also contributed to the final number. Baccarat surged last year with $1.18 billion in revenue, a massive 25.4% increase over 2021. Blackjack brought in $1.29 billion, a 14.4% increase over 2021, craps hit $447.2 million, a 9.7% increase, and roulette made $456 million, an all-time record for the game.
Meanwhile, the latest regulated supply in Nevada is on the rise. Sports books generated $446.7 million in revenue on $8.7 billion in wagers. Revenue and wagers in 2022 broke the previous year’s record of $445.1 million in revenue derived from $8.1 billion in wagers.
WHAT ABOUT 2023?
The result of the last month of the fiscal year was in decline. Total revenue for June amounted to $1.25 billion. This was 2.3% less than $1.28 billion in June 2022 and also 3.1% lower than $1.29 billion in May this year. In fact, it was not the first month of decline since the beginning of the year. But either way the bottom line was on the rise.
For the fiscal year from July 1, 2022 through June 30th, Nevada casinos have generated $15.1 billion in revenue, up from $14.6 billion for the fiscal year that ended June 30th, 2022. This year’s total was an increase of 3.2% or $475.4 million over fiscal year 2022, which increased 37.4% over fiscal year 2021.
Michael Lawton, senior economic analyst for the Nevada Gaming Control Board, said the June comparison was a tough one. June 2022 represented the all-time high for the month and was the 10th highest monthly total in state history. “Over the next year, every monthly comparison will be up against the highest monthly total for that particular month or the second highest total for that specific month. Needless to say the comparisons are going to be the most difficult the state has ever faced”, Lawton added.
The state has recorded decreases in three of the last four months, but Lawton said Nevada continued to record win amounts in excess of pre-pandemic levels in June. Statewide, total win was 19.7% or $204.9 million over June 2019. At this point, June still represented the 28th consecutive month that the state has recorded $1 billion in monthly gaming win.
Statewide slot win in June of $836.2 million decreased 0.3% or $2.6 million and coin-in of $11.8 billion was up $672.7 million or 6.0%. Slot win percentage was 7.07% versus 7.52% in June 2022. This is 2023’s first decrease in slot win; the last decrease was in July of 2022. Revenue from slot machines reached $836.2m, down 0.3% year-on-year. Of this total, some $486.2m came from multi-denomination slots, while penny slots generated $255.2m.
Statewide, table, counter, and card games win of $409.6 million in June decreased 6.5% or $28.6 million and games drop of $2.7 billion decreased 3.0% or $84.6 million from June 2022. Blackjack drew the most revenue at $104.0m. Baccarat win in June of $100.5 million decreased 29.8% or $42.7 million and baccarat drop of $673.9 million increased 2.7% or $17.4 million. Baccarat’s hold percentage was 14.91% versus 21.81% last year.
Meanwhile, there are other indicators that are definitely on the rise. The Las Vegas Convention and Visitors Authority pegged June’s visitation at 3.4 million, 3.1% higher than June 2022. The 20.3 million visitors in the first six months of the year are 9.4% higher than 2022’s 18.5 million. Visitor volume in Las Vegas during the first six months of 2023 was 20.3 million, a 9.4% increase over 18.5 million in 2022, according to the Las Vegas Convention and Visitors Authority. It’s aided by convention attendance of 3.2 million, up 30.7% from 2.46 million during the first six months of 2022.
One of the explanations for the decline is in the “heart” of the casino industry in the state of Nevada: Las Vegas Strip. Gaming revenue of $727.3 million was a 1 percent decline from 2022, primarily driven by a 29% decline in baccarat revenue. Control board senior economic analyst Michael Lawton said Strip gaming revenue without baccarat increased 5.7% in the month. Lawton said if the baccarat total was removed from the statewide number, gaming revenue would have increased by 1%.
As for the smaller jurisdictions, there were mixed results. Two markets in Clark County, the Boulder Strip (which includes Henderson) and downtown Las Vegas, reported double-digit gaming revenue declines. However, several Northern Nevada casino markets continued a resurgence after severe winter weather issues depressed results in the first part of the year. Washoe County as a whole grew gaming revenue by 10% in June to $94.2 million, and Reno casino revenue was up 12.5% to $69 million.
The other factor to understand the June result was sports betting. Nevada sportsbooks collected $9.5 million in revenue during the month, a decline of 60.1% compared to a year ago. The books held less than 2% of all wagers compared to a nearly 4.9% hold last June.
Sportsbook wagers totaled $479 million, which was down 2.3% from June 2022. Bets placed on mobile apps accounted for 67.4% of all wagers. Through the first six months of 2023, sports wagers are down more than 8%. However, revenue is up 7 percent.
