Nevada Casinos Continue Growth Despite Troubled Economy

The nation sits on the verge of simultaneous recession and inflation. Gas and food prices rise drastically each month, while income is stagnant or even in decline. Yet, one industry that continues to show growth, with no sign of slowing, is the Nevada casino industry.

According to the Nevada Gaming Control Board, the state's casinos won more than $1.16 billion in October, setting an all-time high and breaking the previous record set in July of this year. The increase was almost 10% higher than the amount of gambling winnings in October of 2006.

Las Vegas led the way to this new standard, as Vegas casinos brought in over $1 billion for the first time in a single month. Southern Nevada resorts showed a 20% jump in revenue.

Not all areas enjoyed the same growth. Reno casinos showed a decline of 8.7%, and Tahoe casinos dropped 6.4%.

Table games were largely responsible for the record-setting performance, leading growth by increasing 21%, while slots followed with a 5% jump. High-stakes baccarat was by far the best performer, up to over $100 million, an increase of 338%.

By contrast, more established games remained level, or even declined. Blackjack income was up 3.3%, while craps was down 12.9%, and sports books down 57 %.

Taken in context with findings in Missouri and other mid-western states, where total traffic has dropped but profit and revenue continued to increase, it may be seen that the future of the industry will largely cater to the high rollers and ultra-rich. Casinos realized through cost-analysis a while ago that an almost-empty high-stakes table is far more profitable than a jammed table with a low minimum; now high-stakes games are driving the industry, while working-man's joints are stagnant in growth.

Las Vegas has learned the lesson early: even in troubled economic times, when the average player may have to watch his budget, the truly wealthy have money to lose that won't even be missed.

December 13, 2007
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
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