Why the Gaming Industry will no Longer Focus on Las Vegas for Economic Forecasting

When legalized gambling started in the 1930’s in Nevada it was unique in all the country. Nevada could market itself as the only place in the United States where a person could legally place bets, wager money, and play games of chance. That alone was enough to draw people from all over the country and the world to its casinos.

By the time Atlantic City, New Jersey started building casinos 50 years later, Nevada had experience on its side. While it was no longer the only destination, it’s cities, especially Las Vegas, were the premier gambling destinations in the world. For the Las Vegas experience, people would travel from all over the country and all over the planet. This allowed Nevada to rule the gaming industry for much of the 20th century. As a result, measuring the growth of the global gaming industry was done through the economic forecasting of Nevada’s casinos.

As the first quarter of the 21st century continues, the worldwide gaming industry map is much larger. Nearly every state in the US now has some form of legalized gambling. It is estimated that most of the population of the United States now lives within a few hours drive of casino. Couple this with the huge growth of gambling in Asia, and players all over the world have more options.

The effect of this tremendous expansion has been felt most acutely in Atlantic City. Once the sole destination for legalized gaming in the Northeast, Atlantic City now finds it’s visitor levels plummeting and its casinos closing. Populations who once flocked to its famous boardwalk now have dozens of local casinos run by Native American tribes and neighboring states to choose from. When a patron can experience the same table games and entertainment options much closer to home, there is little reason to travel all the way to Atlantic City. As a canary in a coal mine, the problems in New Jersey may serve as a financial warning, forecasting economic challenges for gaming in Las Vegas and all of Nevada.

The Pandemic is Resetting Nevada’s Economy: The Path Forward

The Nevada Governor’s Office of Economic Development released the state’s post-pandemic economic plan, prepared by SRI International. RCG Economics was fortunate to participate in the study, along with Brookings Mountain West. As part of this release, RCG is making available both the full SRI report as well as the more detailed version of our economic forecast. Click here to see both reports. RCG forecasted economic conditions in Nevada through the end of 2021. In its full Economic Forecast, RCG projected a wide range of indicators for the state, the Las Vegas MSA and the Reno-Sparks MSA. They include: Aggregate GDP GDP of selected sectors Taxable sales Nonfarm jobs Unemployment rate Visitor volume A variety of tax revenue sources Other indicators RCG found that: It will likely take, at a minimum, until the end of 2022 for Nevada’s economy to return to its pre-pandemic long-term growth trend The pandemic will inalterably change the structure of the state’s economy Nevada, and especially Southern Nevada, should embrace these changes To reduce the chances of another economic disaster: Nevada must move aggressively toward a state economy that Is much more resilient than it is today, [...]

By |2022-03-07T16:14:26-08:00January 28, 2021|Economic Forecasting, Nevada by the Numbers Blog, Public Policy Issues, RCG Blog|Comments Off on The Pandemic is Resetting Nevada’s Economy: The Path Forward

Nevada Gaming Sees Strong Growth in September

Nevada’s nonrestricted gaming licensees reported a total “gaming win” of $1,059,291,018 for the month of September 2019, according to the state's Gaming Control Board. This amounts to a 6.83% increase compared to September 2018, when licensees reported a gaming win of $991,600,256. For the fiscal year (July 1, 2019 through September 30, 2019), gaming win has increased 4.68%. In Southern Nevada, Downtown led the way with a 19.89% increase in gaming win over the year. North Las Vegas and the Boulder Strip also saw double-digit gains, while the Strip posted a solid 7% growth. Mesquite's 1.54% increase was the smallest for the region in September. Our friends at Deutsche Bank provide some further analysis in Southern Nevada, showing Baccarat and slots were driving Strip gains:   September LV Strip Revs: +7.0% y/y vs DB Estimate +5.4% 3Q19 LV Strip Revs: +5.8% y/y September LV Locals Revs: +9.6% y/y 3Q19 LV Locals Revs: +3.0% y/y   Strip Slots: Slot Revs: +7.5% Slot Handle: +2.2% Slot Hold: +43 bps   Strip Baccarat: Baccarat Revs: +55.7% Baccarat Drop: -22.9% Baccarat Hold: +1,010 bps (20.0% versus hold of 9.9% in September, 2018 and an [...]

By |2022-06-22T18:23:27-07:00October 30, 2019|Blog, Economic Forecasting|Comments Off on Nevada Gaming Sees Strong Growth in September
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