Las Vegas sees revenue rise in second quarter 2015
04 June 2015
According to the Nevada Gaming Control Board, casinos might have had an average year in 2014, however the situation in 2015 is looking much more promising with improved revenue standings. Compared to 2014, Las Vegas Casinos reported a 5% rise increase, making a collective revenue of $95 million dollars and a total revenue of approximately $898 million dollars for the state of Nevada, making this a total revenue increase of 5.4%.
The main gaming activity that showed much popularity and responsible for the massive revenue increase in most Las Vegas casinos is baccarat. Las Vegas casinos reported that mini baccarat skyrocketed by 31.6 % during the month of April 2015 and responsible for bringing in $4.9 million dollars. These figures are ironic as baccarat has never been that popular in Las Vegas, however it is a more popular table game in Macau.
Ever since Beijing started its recent anti-corruption crackdown on Macau’s casinos, these VIP Asian gamblers have since refrained from visiting Macau and now playing their hand in other lucrative gaming markets such as Las Vegas. Gamblers and visitors have been flocking to Las Vegas and as a result a greater demand for the table game of baccarat.
Managing director of JP Morgan Securities, Joseph Greff commented saying: “The market will and should continue to experience volatility in baccarat play given a likely slowdown in Chinese players. That said, April baccarat numbers were encouraging.”
A recent report published by Morgan Stanley Research Ltd and AlphaWise, a market research firm indicated that Las Vegas casinos are dependent on VIP and high stake gamblers from Macau to enhance and boost their revenues. A sure indication that the revenue rise in the month of April 2015, is directly related to the influx of the VIP gamblers from Macau. Other attractive casino locations such as The Philippines, Vietnam, Cambodia and South Korea are also marketing their respective casinos and lucrative offers, targeting these high volume VIP gamblers from Macau.
Macau making more than six time the revenue than that of Las Vegas, has experience the opposite as a 12 month consecutive revenue decline has been reported by Macau Casinos.
Las Vegas casinos are confident that their recent market fall in 2014 is finally over and looking forward to increased revenue figures and growth for the remaining standings of 2015.