Nevada casinos report $1.3 billion September win, baccarat volatility impacts Las Vegas Strip

Nevada casinos posted a $1.3 billion gaming win in September, marking a 3.3% increase from the same period last year, but volatility in baccarat earnings led to a 1.8% decline on the Las Vegas Strip, the Nevada Gaming Control Board reported Tuesday.

In contrast to the Strip’s decline to $727.7 million, downtown Las Vegas registered a 33% increase, buoyed by record slot machine revenue. Statewide quarterly revenue, however, fell 2.6% from the prior fiscal year, a dip largely attributed to unpredictable baccarat earnings.

“The decline is being driven by difficult hold comparison which saw the same quarter of 2023 recorded a hold percentage of 21.5%, which was historically very high, compared to the 11.6% recorded during this quarter which is below average,” Michael Lawton, Senior Economic Analyst at the Nevada Gaming Control Board, explained.

Baccarat, a high-stakes table game sensitive to win rate fluctuations, saw a significant drop in its “hold” rate this quarter. Excluding baccarat, gaming on the Strip rose 3.4% for the quarter, indicating continued growth across other gaming areas.

The quarter’s performance benefited from Las Vegas’ bustling September, driven by high-profile sporting events and entertainment. Allegiant Stadium hosted the Vegas Kick-Off Classic featuring a college football game between Louisiana State and the University of Southern California on Sept. 1, while UFC 306 was the first-ever sporting event held at the Sphere on Sept. 14, to name two highlights of the calendar.

In a milestone for Nevada sportsbooks, the state reported record betting revenue of $80.9 million in September, a 29.8% jump over the previous year. “This represents a new all-time record beating the previous high of $72.0 million set in November of 2021,” Lawton said, attributing the record-breaking revenue to a 10.57% hold rate despite a slight decrease in total wagers.

Across other local markets, the Boulder Strip recorded a 19.3% revenue increase, while Clark County locals casinos rose by 15.9% and Reno by 12.4%. However, South Lake Tahoe saw a decline of 18.8%, with similar losses reported in North Lake Tahoe and Laughlin.

Analyst Joe Greff from J.P. Morgan highlighted a reporting quirk, noting that "because the prior month ended on a weekend, slot win for Saturday, August 31, was reported in September results, overstating September 2024 slot revenue.”

Gaming revenue exceeded $1 billion for 43 consecutive months in Nevada.