Las Vegas revenues for casinos on the Strip have dipped slightly in the past three months despite the volume of visitors increasing. The slight decrease can be attributed to baccarat. The popular table game, especially among Asian visitors, has reported a heavy decline of 40% in the last year.

The Las Vegas Strip saw a slight downturn in casino revenue through the first nine months of 2024, marking a 0.2% decrease after September became the third straight month of declines. The Nevada Gaming Control Board's recently released report sheds light on a key culprit in the revenue dip: baccarat. The popular table game, which is known to attract a large number of Asian players, has contributed significantly to the decline in Gross Gaming Revenue on the Strip for the past three months.

The NGCB's monthly GGR report for September reveals that, while gaming revenues across Nevada increased by more than 3.3% year-over-year to a total of $1.31 billion, the Las Vegas Strip's revenue fell by 1.8% down to $727.6 million. A closer look at the data reveals that baccarat performance is central to this trend, with Strip casinos reporting a substantial year-over-year drop in hold for the game.

Baccarat's influence on Strip revenue

Baccarat, a long-time favorite among high-rolling international visitors, has seen a particularly challenging streak. In September, the 24 Las Vegas Strip casinos offering the game reported a 40% decline compared to the previous year. While the September 2023 baccarat hold rate was around 22%, it dropped to just 17% this year, pushing Strip baccarat revenue down to $88.5 million - a near $59 million reduction from last September.

"The decline is being driven by difficult hold comparisons," said Michael Lawton, senior economic analyst at the NGCB, addressing the cause of the Strip's performance issues. The hold rate measures the percentage of wagers retained by the casino after winnings are paid to players. A lower hold means that baccarat players have been luckier this year, taking a greater share of their wagers back with them.

Rising revenues in other markets offset Strip declines

While the Las Vegas Strip saw its baccarat takings diminish, other gaming areas in Clark County enjoyed notable revenue increases, primarily driven by slot performance. For instance, downtown Las Vegas led the way with a 33% surge in GGR, reaching $91 million. Other areas in Clark County also saw boosts: Boulder's revenue jumped by 19% and led to an increase of $80.4 million, Mesquite saw a 2% increase to $14.1 million, and the broader Clark County area grew by nearly 16% up to $156 million.

Throughout the state, slot machines continued to be a strong performer, with revenues up 10% year-over-year to $896.9 million, largely offsetting the 15% decline in table games. Additionally, Nevada's sports betting scene showed a strong performance, with $80.9 million retained from the $764.6 million wagered in September, marking a 30% increase in revenue for sportsbooks.

Three-month decline on the Strip

The months of July, August, and September saw the Strip's GGR fall for three consecutive months, the first time this happened since 2019. With September's results, Strip revenue for the year slipped into the red, intensifying concerns about a possible slowdown in leisure travel. However, Lawton asserts that baccarat alone is largely responsible for the Strip's downturn. "When you remove baccarat from the totals, the Strip is up 3.4%, or $60.8 million, for the quarter, and the state is up 3.3%, or $114.2 million," he explained.

Despite baccarat's challenges, Nevada's statewide gaming win is still showing positive growth. Through the first three quarters of the year, statewide GGR has risen by about 1.2% to approximately $11.54 billion, an increase of around $140 million.

Visitor volume and hotel rates show mixed results

The Las Vegas Convention and Visitors Authority also released its visitor report for September, showing that almost 3.39 million visitors came to Las Vegas, a 1.6% increase over the same period last year. The rise in visitor numbers was mainly driven by convention attendance, which saw a remarkable 29% year-over-year increase, reaching 527,200 attendees.

Despite the surge in visitors, the average room rates across the Strip and wider Las Vegas area dipped slightly by around 3%. On average, Strip rooms cost $210 per night, while other accommodations averaged $196, not including resort fees and taxes. Meanwhile, Harry Reid International Airport reported a minor 0.8% decrease in passenger traffic, with around 4.75 million arrivals and departures recorded in September.