Nevada’s gaming industry ended the first half of 2024 on a high note, particularly in Las Vegas, while northern regions faced challenges. The state saw $1.28 billion in gaming revenue in June, a 3.2% increase from June 2023, according to the Nevada Gaming Control Board.
Las Vegas Strip Resilient with 4.2% Revenue Increase
Casinos serving local patrons drove much of this growth, with a 6.2% rise in June and a 9% increase for the second quarter. The Las Vegas Strip showed resilience, with revenue climbing to $758.5 million, marking a 4.2% year-over-year increase and a 4.8% gain for the second quarter.
Downtown Las Vegas also performed well, seeing a 5.8% rise to $66.2 million. The Boulder Strip and Mesquite experienced moderate increases, while Laughlin saw a slight decline. However, northern Nevada did not fare as well, with Reno, Sparks, and South Lake Tahoe all reporting significant drops in revenue.
Michael Lawton, a senior economic analyst for the Control Board, noted that an extra weekend day in June 2024 compared to the previous year contributed to these gains. Las Vegas welcomed nearly 3.5 million visitors in June, a 1.8% increase from the same month in 2023.
Las Vegas Sees Robust Weekend Occupancy Despite Midweek Dips and Upcoming Hotel Closures
Overall hotel occupancy in June slightly decreased to 85.2%, but weekend occupancy was robust at 91.3%, while midweek occupancy dipped slightly to 82.6%, with convention attendance down 7.9% due to scheduling shifts. The average daily room rate rose by 6.4% to $176, and revenue per available room increased by 6% to nearly $150.
Notably, the closure of The Mirage and Tropicana hotels is set to reduce room availability on the Las Vegas Strip by nearly 5%, leading to higher hotel rates. Recently, CBRE’s director of equity research John DeCree predicted this will benefit mid-tier hotels, driving earnings growth as demand shifts and average daily rates increase.
Moreover, the Las Vegas Strip’s gaming win was notably boosted by a busy events calendar, including performances by Bruno Mars and Lady Gaga, a significant boxing match, soccer matches in the Copa America Tournament, the NHL Draft, and major UFC fights. These events contributed to a 4.3% increase in the Strip’s gaming win.
June also marked the end of Nevada’s fiscal year, with the state achieving a record $15.8 billion in gaming revenue, a 4.4% increase from the previous fiscal year. This marks the third consecutive year of record-breaking gaming revenue for the state. The Las Vegas Strip, in particular, saw its gaming revenue rise by 6.1% to $9.1 billion, accounting for 57.4% of the state’s total.