In what is reported to being the largest drop in gambling revenue in 8 months, Las Vegas saw its revenue fall 7.6% in June. This percentage reflected a drop from $414.5 million to $383 million year on year. It was also the third month in a row that gambling revenues continued to drop.
One of the main reasons for these numbers was the fact that a number of Strip casinos showed that they earned 61% less in baccarat – a number that affected the overall gambling revenues.
“It’s a volatile business and, as it happens, the gamblers played lucky,” said a senior research analyst with the Gaming Control Board, Mike Lawton. “Baccarat absolutely moved the needle.”
Nevertheless, casinos are starting to see improvement in the second half of 2010 as they spearhead promotional campaigns in a bid to bring gamblers and vacationers back to the city. A number of top resorts such as MGM Resorts International and the Las Vegas Sands Corp. have cut room prices and launched a series of special offers.
Competition is definitely fierce as casinos try to outdo each other by offering complimentary rooms, and this is seen as hurting rates at other casinos.
“There is too much comping,” said Robert Goldstein, the head of Las Vegas Sands’ two resorts, “but there is also too much supply in the market right now. You will see that continue to be a problem for us and for the market in general until travel strengthens.”
“Las Vegas and Atlantic City have long been the standard by which other gaming destinations in the US were judged,” noted another gambling analyst. “The two cities understand, however, that competition is greater than ever. Newer casino resorts are being built in places such as Pennsylvania and California, and Las Vegas and AC casinos are feeling the pressure.”