Are Nevada Casinos coming out of their Slump?

By Goodluck | 5th April 2012 | Casino News

The big question going around the water cooler at Nevada-based casinos is, “Are we back?” The state just published official documents showcasing its annual revenue for 2011 and it is the second year in a row that it has gone up. Analysts were also quick to point that these results are not just reliant on Baccarat play, the popular casino game that lifted this industry’s performance throughout the recession.

Throughout the state, the casinos collected over $10 billion in casino gaming revenues in 2011. This is a 2.8 percent increase over the total in 2010, as well as the biggest jump for the Nevada industry in four years.

On the Las Vegas Strip alone, casino gaming revenues went up by 5.1 percent. These casinos made $6.068 billion. It was the first time the casinos along the Strip made over $6 billion since 2008.

Subtracting the Baccarat figures from the mix, casinos throughout Nevada had a 2.4 boost in casino gaming revenue, which has not been seen since the year 2007.

Michael Lawton, a senior research analyst over at Gaming Control Board said that this is a very broad recovery. While it is not double digits, it is steady and gradually climbing, which is what casinos want to see.

The highest amount of revenue earned in 2010 did not come from Baccarat but actually slot machines. In 2011, casinos in Nevada saw their revenues increase by 1.5 percent from all slot machine wagering. In 2010, revenues from slot machines were actually down by 2.7 percent

So the question is again, is Nevada back on the scene?

Chad Beynon, a gaming analyst for Macquarie Securities said that these numbers are a very good indication that spending is growing. Joe Greff, a gaming analyst for JP Morgan noted that it is the belief that JP Morgan’s Nevada casino gradual recovery thesis will remain intact going into 2012.