Vegas Strip Revenue Down

Nevada has experienced its first earnings drop since 2001, data reveals.

The mighty casino industry of Las Vegas and the state's casino industry at large have seen a nearly 5 percent decrease in their revenue in January, compared with the same month last year. Their take, however, was still exceptionally high, at $1.06 billion.

Nevada's Gaming Control Board, which stands behind the data and its publication, reported also that the Las Vegas Strip itself has fallen 1.3 percent, to a "mere" total of $597.3 million in January.

The decrease elsewhere around Nevada, in places such as Reno and North Lake Tahoe, was even more punctuated, at down 9.4 percent.

More Numbers
Nevada is not buried, far from it. Tourism to the city of Las Vegas and statewide, even if not gambling as heavily, was near the 40 million people mark for 2007. Representing a rise of 2.2 percent from the previous year, they have also spent $11 billion in their visits, the Las Vegas Convention and Visitors Authority reported.

February too has seen somewhat of a slump, compared to last year. Tax revenues have fallen from $93 million in February 2007 to $82 million last month.

Keeping the Faith
Although such drops - or dips of any kind - are practically foreign to Nevada, having not occurred since 2001, they are no end game. Not according to Steve Wynn, owner of Wynn Resorts.

Wynn claimed in December that Las Vegas is no island, and that the nation's economic woes will and do affect it.

Not the Wynn, but another Vegas establishment, MGM Mirage, which operates Mandalay Bay, MGM Grand and the Bellagio, saw its income rise considerably. Yet other casinos, such as those operated by Las Vegas Sands Corp., Harrah's Entertainment Inc., Boyd Gaming Corp and Station Casinos Inc. have not fared that well.

The X Factor
China and Chinese tourist play a major factor in the Nevada industry numbers. International tourists from all over the world flock to Vegas especially when the dollar is weak, as it is now.

The Chinese tourists in particular visit on and around the Chinese New Year, though this year they have not.

Perhaps Macau is posing some competition that hurts Vegas? Or maybe Americans account for much of the decrease? Online Casino Reports will follow the data and see which way the wind blows.