For the second consecutive month, Nevada’s Las Vegas Strip reported an increase in gaming revenue, reaching $679.4 million in August, according to the state’s Gaming Control Board. This marks a 5.5 percent rise compared to the previous year, slightly below July’s 5.6 percent growth, both of which were heavily influenced by strong performance in high-stakes baccarat games. n nBaccarat revenue on the Strip surged by 51.1 percent year-over-year, totaling $114.1 million. Despite a drop in total wagers—down more than 14 percent—casinos retained 18.5 percent of the money bet, up from 10.5 percent in August 2024. Analysts attribute the improved hold percentage to favorable outcomes rather than increased volume. n n”Baccarat clearly lifted the headline figures for August, underscoring the continued strength of premium gaming on the Strip,” noted Daniel Politzer, gaming analyst at J.P. Morgan Securities. n nOutside of baccarat, results were less encouraging. Slot machine earnings dipped slightly compared to the prior year, and non-baccarat table games saw a 1.4 percent decline. For the first eight months of the year, Strip gaming revenue is up 1 percent compared to the same period in 2024. n nDeutsche Bank analyst Steven Pizzella acknowledged the positive top-line numbers but cautioned that underlying trends present a mixed outlook. “Results are exceeding expectations, but the fundamentals remain uneven,” he told investors in a research update. n nThe broader tourism picture shows signs of strain. August marked the seventh straight month of declining passenger traffic at Harry Reid International Airport, which handled over 4.5 million travelers—6 percent fewer than last year. Year-to-date, airport volume is down 4.5 percent. n nSpirit Airlines, once the airport’s second-largest carrier, filed for Chapter 11 bankruptcy on August 29 and saw a 46.3 percent drop in monthly passenger numbers. Its year-to-date traffic has fallen 32 percent. In contrast, Southwest Airlines reported a 4.2 percent increase in August and a 1 percent rise for the year. n nInternational visitation also declined, falling 3.7 percent in August and 2 percent year-to-date, largely due to steep drops in flights from Canadian carriers. WestJet traffic is down 34 percent, Air Canada by 32 percent, and Flair Airlines—having suspended all Las Vegas routes—saw a 62.5 percent annual decline. n nDespite these headwinds, statewide gaming revenue rose 5.5 percent to $1.22 billion, the second-highest monthly total of the year after February’s $1.21 billion. Most regional markets posted gains: Downtown Las Vegas saw an 8.4 percent increase, Laughlin rose nearly 11 percent, and Reno was up 4.9 percent. Only unincorporated Clark County and North Lake Tahoe reported decreases. n nCBRE Equity Research analyst John DeCree suggested that ongoing geopolitical concerns, immigration-related travel hesitancy from Southern California, and reduced flight availability could continue to affect Las Vegas visitation into 2026. n
— news from The Nevada Independent
— News Original —
Strip, Nevada gaming revenue rises in August despite economic slowdown fears
For the second straight month, a handful of Strip casinos dealing high-end baccarat games boosted Nevada’s gaming market and provided a counter to myriad headlines declaring Las Vegas dead. n nThe Strip recorded its second consecutive monthly gaming revenue increase during August, reporting $679.4 million for the month, the Gaming Control Board said Friday. The 5.5 percent increase nearly matched July’s 5.6 percent jump, which was also attributed to baccarat results. n nStrip baccarat revenue grew 51.1 percent in August to $114.1 million. While wagering on the game was down more than 14 percent, casinos held 18.5 percent of all bets, compared to 10.5 percent last August. n n“Baccarat obviously buoyed [the] August headline numbers, showing the ongoing resilience of Las Vegas Strip gaming,” wrote J.P. Morgan Securities gaming analyst Daniel Politzer. n nOn the Strip, slot machine revenue was $100,000 less than a year ago, while table game revenue minus baccarat declined 1.4 percent. n nThrough August, Strip gaming revenue is up 1 percent compared to the same eight months of 2024. n nDeutsche Bank gaming analyst Steven Pizzella told investors in a research note that Strip results were exceeding expectations, “although the underlying metrics are still painting somewhat of a mixed picture.” n nRead more: Headlines say Vegas is dead. What’s actually going on is more complicated. n nMeanwhile, August marked the seventh consecutive month of declining passenger volume at Harry Reid International Airport. Tourism totals for the Strip and Southern Nevada are expected to be released later Friday by the Las Vegas Convention and Visitors Authority. n nThe visitation results won’t reflect the authority’s recent ‘Fabulous’ advertising campaign, which began after Labor Day weekend. n nStatewide, August turned out to be a strong revenue month for casinos throughout Nevada. Only two reporting markets — the unincorporated areas of Clark County and North Lake Tahoe — showed declines. Downtown Las Vegas had an 8.4 percent gaming revenue increase, Laughlin was up almost 11 percent and Reno was up 4.9 percent. n nStatewide, gaming revenue increased 5.5 percent to $1.22 billion, which was the second-lowest single-month total this year, trailing $1.21 billion in February. n nIn a research note published Friday morning ahead of the announcement, CBRE Equity Research analyst John DeCree suggested that Las Vegas visitation could face challenges into 2026. n nHe wrote the Strip’s normal “slow summer” has been “exacerbated by negative geopolitical sentiment from Canada and Mexico, immigration control concerns from Southern California, and reduced flight capacity from Spirit Airlines.” n nSpirit, which had been Reid Airport’s second busiest passenger carrier behind Southwest Airlines, filed for Chapter 11 bankruptcy protection for the second time this year on Aug. 29. Spirit saw a 46.3 percent drop in passenger volume during the month and is down 32 percent through August. n nReid Airport’s passenger volume of more than 4.5 million passengers was a 6 percent drop compared to a year ago. Through eight months, the airport has seen a 4.5 percent overall decline in passenger totals. n nSouthwest reported a 4.2 percent increase in passengers during August and is up 1 percent for the year. n nInternational travel was down 3.7 percent in August and is off 2 percent from a year ago, due primarily to a continued freefall in passenger volume from the three Canadian-based airlines with direct service to Las Vegas. n nThrough eight months, WestJet passenger traffic is down 34 percent compared to 2024. Air Canada is off 32 percent and Flair, which didn’t have any flights to and from Reid in August, is down 62.5 percent for the year. n nThis story will be updated with Las Vegas tourism results for August.