The latest data for June indicates that Nevada's gaming, visitation, and economic metrics were largely stagnant, marking the close of the fiscal year for both Las Vegas and the entire state.
According to the Nevada Gaming Control Board, gross gaming revenue statewide reached $1.34 billion last month, reflecting a minimal year-over-year increase of 0.8%. The fiscal year-end total for the state amounted to $16 billion, showing a rise of about 2.5% compared to the previous year.
On the iconic Las Vegas Strip, June's gross gaming revenue dipped slightly, down 1% year-over-year to $754.6 million. After a decline last year, the Strip experienced growth this fiscal year, concluding with a 2% year-over-year increase to $8.9 billion. A notable factor contributing to the recent decline was a significant slump in baccarat performance, with the Strip winning $102.7 million from the game in June, a drop of 20% from the previous year as reported by the NGCB.
In other southern Nevada regions, growth varied, with Mesquite recording the most substantial percentage increase, achieving $207 million and a growth rate of 6.6%. North Las Vegas (4%), the Boulder Strip (3.6%), and downtown Las Vegas (3%) also reported upward trends, with Boulder and downtown both nearing the $1 billion mark in gross gaming revenue. The Las Vegas locals market remained steady at nearly $2 billion, showing no change year-over-year.
Visitation in Las Vegas remained relatively stable in June, with 3 million visitors, although conference attendance saw significant growth, up 25%. Hotel occupancy in the Las Vegas area stayed unchanged at 78%, but average daily rates and revenue per available room on the Strip fell by approximately 5%.
While specific passenger data from Harry Reid International Airport was unavailable, total traffic was reported to be down 6% year-to-date as of May.
Further north, Reno stood out in June with a gross gaming revenue of $81.6 million, representing a remarkable increase of 20% compared to last year, making it the most successful market tracked by the NGCB. For the fiscal year, Reno's GGR increased by 7% year-over-year, totaling $825.3 million.
The Reno-Tahoe area has experienced a record tourism surge this year, with a 4% rise in air traffic noted by Reno-Tahoe International Airport in June. The passenger count figures for April and May marked the highest numbers seen in nearly twenty years. Additionally, the first quarter of the year saw Reno's taxable room revenue hit $106 million, a record high for the city's first quarter, according to Visit Reno Tahoe.
Changes in market dynamics are anticipated in the coming years, as Caesars Entertainment, currently based in Reno since its acquisition by Eldorado Resorts in 2020, will transition its headquarters to Houston under Fertitta Entertainment. Caesars operates three properties in downtown Reno, namely the Eldorado, Silver Legacy, and Circus Circus.
Meanwhile, other operators are investing substantially in growth initiatives. The Grand Sierra Resort is undergoing a multi-phase expansion valued at $1 billion, while the J Resort recently completed a $400 million renovation and expansion in May.
On the employment front, Nevada experienced a 2% year-over-year increase in nonfarm jobs in June, according to the state's Department of Employment, Training, and Rehabilitation. The leisure and hospitality sector led this rise, adding 1,700 jobs statewide.
In the Las Vegas metro area, employment remained flat month-over-month but rose by 2% year-over-year. The Reno metro area reflected similar trends, maintaining a flat month-over-month status and a slight year-over-year increase of 1.5%.
David Schmidt, the Chief Economist at DETR, remarked on the labor market, stating, "Nevada has added jobs at a brisk pace, and that trend continued in June with over two percent growth in jobs over the past year. The labor force participation rate and unemployment rate both decreased, aligning with the changes in national rates this month. Overall, the state's labor market remained on a solid footing in June."
