Nevada’s Gambling Revenue Falls in Early 2019
The world’s casino industry is certainly changing. Some of the most powerful gambling hubs on the planet have seen their revenue drop, while the casino market in some smaller countries is growing exponentially. This week, news came out that Nevada’s gambling revenue has dropped during the month of January.
There are a number of factors contributing to these losses. Let’s take a look at the casino industry in this state, and what to expect for the future.
Gambling Options Opening Around the US
In mid-2018, the US Supreme Court ruled that PASPA was unconstitutional, opening the doorway for individual states to set their own laws on sports betting. For years, the federal government had banned gambling on sports in just about every state around the country. With PASPA gone, many states began introducing legislation to allow sports betting inside casinos.
Today, eight states in the US have outright legalized sports betting. A number of other states have pending legislation to allow this popular form of gambling. Within a few years, it wouldn’t be a surprise to see almost every state with at least some form of legal sports betting.
Just recently, New York passed a law to allow sports betting inside casinos. The casino revenue here has been struggling due to high competition. Lawmakers hope that opening the sports gambling market will substantially increase revenue.
The fact that there are now so many gambling options around the country seems to be affecting previous gaming hubs such as Las Vegas. So how much has Las Vegas’ revenue dipped this year?
Nevada’s Gambling Revenue Falls 3% in January
According to numerous reports, the gambling revenue in Nevada fell by 3% in January compared to the same month in 2018. Casinos across the entire state earned $984.6 million last month. Baccarat gambling revenue dropped down significantly at just $95.9 million, representing a 15.1% decrease from January of 2018.
Sports betting attributed to the biggest dip in Nevada’s gambling revenue. Incredibly, the city of Las Vegas earned just $14.6 million this January. That’s a 40% drop from last January.
The state of New Jersey actually earned more through their sports betting in January than Nevada did. More money was spent on bets in Nevada ($385 million), but their win rate was tiny at 2.9%. New Jersey sportsbooks had a win rate of 7.8%.
Casinos in Reno earned a little more than $44 million last month, representing a decrease of 1.1%. It’s clear that Nevada’s gambling revenue is dipping. The question that many people are asking is whether or not that trend will continue.
What to Expect for Nevada’s Gambling Industry in 2019
Just because Nevada had a rough January doesn’t mean the gambling industry here is in trouble. Las Vegas remains the biggest gambling hub in all of the United States. Despite the major increase in gambling across other states, Nevada will be the top dog for years to come.
Senior Analyst of the Nevada Gaming Control Board, Michael Lawton, gave his take on why the losses occurred.
“Everything is kind of being disrupted by baccarat,” he said. “The overall picture of what we’re seeing is the baccarat hold percentage is kind of holding us back or disrupting those other positive trends that we are seeing, for example, slot (machine) win is up fiscal year to date 4 percent and has increased five consecutive times.”
It’s interesting to see Lawton attribute Baccarat to Nevada’s gambling revenue decrease. This form of gambling is certainly costing the state money, yet it seems more likely that competition from other states is to blame.
The rise of online gambling in the US may also be a reason for Nevada losing money. The US Department of Justice recently changed its stance on the Wire Act, yet a number of states are still considering opening up their online gambling industry. There are a huge number of online sportsbooks available to US citizens already.
Las Vegas and the state of Nevada don’t need to worry. Vegas remains one of the most popular tourist cities in the country, and it continues to bring in millions through the gambling industry every month. Make sure to stay tuned for updates on how the gambling industry performs as the year goes on!
Do you think New Jersey could overtake Nevada as the biggest gambling state? Will online gambling begin affecting Vegas more in the future? Let us know what you think in the comment section below!
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