While there were undoubtedly plenty of tourists that visited Las Vegas in August, these visitors didn't necessarily grace the casino floors. According to the Nevada Gaming Control Board, gross gaming revenue on the Strip for August fell by 3.5% from the same month last year, even though visitor numbers increased by 2.4% this year.

Las Vegas continues to draw large crowds, welcoming almost 3.4 million visitors in August of 2024, a 2.4% increase compared to the same period last year. However, despite the rise in visitation, casinos on the Strip and across Clark County reported a decline in gross gaming revenue largely due to a challenging calendar and unfavorable house win rates.

According to the Nevada Gaming Control Board, Las Vegas Strip casinos generated GGR of just under $643.7 million in August, representing a 3.5% year-over-year decline. Downtown Las Vegas casinos experienced a more substantial drop, with GGR sliding by almost 9% to only $58.3 million. The Boulder Strip faced the steepest fall, with GGR tumbling by around 22% to only $64.8 million. Collectively, Clark County saw a 4.4% decline in casino revenue, bringing in $980.9 million for the month.

Timing and calendar effects contribute to decline

Michael Lawton, a senior economic analyst for the NGCB, attributed some of the downturn to how the calendar fell in August. "A lot of the volatility you are seeing downtown and on the Boulder Strip is the result of the month of August ending on a Saturday," Lawton explained. This scheduling quirk meant that slot collections from the last weekend of the month fell into September, which will be reflected in the Board's next filing. Despite the drop in reported revenue, Lawton suggested that some of the losses may balance out in future reports.

The challenges of the August calendar compounded the fact that statewide GGR had already posted a year-over-year decline in July, making this the second consecutive month of lower gaming revenue compared to 2023.

Baccarat and betting losses weigh heavily

One of the primary drivers of the revenue decline was a sharp drop in baccarat winnings. The game, popular among Asian high-stakes players, saw a dramatic 34% reduction in GGR on the Strip, bringing in $75.7 million for the month. Lawton noted that without the game of baccarat, the Strip's GGR would have actually increased by 2.8% year-over-year.

Adding to the challenge, Strip oddsmakers also struggled in August, generating only $7.4 million in revenue with a hold rate of merely 3.7%, well below expectations. This poor performance mirrored similar trends in other parts of Nevada, such as Reno and Washoe County, where GGR fell by 3.8% statewide to $1.16 billion.

Despite these headwinds, August's gaming revenue declines were not as severe as some analysts had predicted. Deutsche Bank had forecast a year-over-year decline of 4.8%, which was slightly worse than the actual numbers reported.

Smaller markets show growth while leisure travel boosts visitor numbers

While major gaming markets like Las Vegas and Reno saw declines, several smaller Nevada counties posted gains in August. Carson Valley, for example, reported a 9% increase in GGR to $12.3 million. Other areas also saw notable growth, including Churchill County, which reported revenues of $2.4 million (up by 24%), and Nye County, where revenue climbed 4% to over $5.6 million. The South Shore of Lake Tahoe in Douglas County posted a modest gain of 1.3% to $26.7 million.

The rise in visitor numbers was driven primarily by leisure travelers, according to the Las Vegas Convention and Visitors Authority. Public visitation helped push the overall visitor count up by over 2%, despite a slight drop in convention attendance, which fell by more than 1% to just 638,300 attendees.

The influx of tourists also contributed to higher hotel occupancy rates in Clark County. The overall occupancy rate climbed 0.9 points to as much as 81.2%, with weekend occupancy reaching 90.2%. Weekday occupancy, which relies more heavily on business travelers, dipped slightly to 76.9%. On the Strip, hotel rooms were nearly 85% full for the month, with an average nightly rate of $186.

Airport traffic reflects growth

Harry Reid International Airport, Las Vegas' primary air hub, continued to see strong passenger traffic in August, with over 4.8 million passengers. This marked a 5% increase from the previous year. Year to date through August, the airport has handled over 38.7 million passengers, a nearly 3% increase from 2023, which was a record year for the airport.

Southwest Airlines continues to dominate the Las Vegas market, accounting for 14.5 million passengers in 2024's first eight months.

Despite the declines in gaming revenue, Las Vegas remains a bustling destination, buoyed by strong tourism numbers and a recovering leisure travel sector. However, with volatile gaming results and challenges in the casino industry, the city's financial outlook remains mixed.