Are People Gambling More When They Come to Las Vegas These Days?

In the “Vegas News” section of your website, you note that visitor volume for October 2020 is down 50 percent from October 2019, but the gaming win for the Strip is down only 30 percent for the same time period. Am I correct in deducing that this means that people are gambling more?

It would seem so.

Regional casinos, which are doing better than Las Vegas, have been reporting less visitation, but higher spend per customer. (An exception should be noted for Las Vegas Strip baccarat play, an important component, which was down 42 percent in October.)

As Deutsche Bank analyst Carlo Santarelli writes of gaming spend, we are “... seeing this everywhere, which is somewhat reasonable, right? If you're going to a casino in the current environment, you're going there to gamble, since many other amenities are closed, whereas historically, you may have been stopping in for a bite to eat, etc. In Las Vegas, same thing. People aren’t showing up for nightclubs or shows or conferences right now. It’s just the mechanics of who your customer is today.”

JP Morgan analyst Joseph Greff wouldn’t comment on October revenues, but cc’d us a copy of his report on November trends in Las Vegas, which is a bit grim.

“In November, casino visitation decreased in Clark County, Nevada (both the Strip and Locals segments are included in here), which we view as notable given [gross gaming revenue] and visitation have been tracking at a similar pace relative to pre-COVID levels since reopening this past June. … The relationship between casino visitation in regional markets has not been as closely linked relative to that observed in Clark County.”

Greff elaborates. “For the month of November, visitation in Clark County declined to 58% of pre-COVID (February 2020) levels vs. 66% in February, though visitation trends across regional markets were relatively more positive. … Clark County gross gaming revenue has, on average, been tracking at around 54% of pre-COVID levels, similar to visitation tracking at 56% of February levels.”

It should be noted that gross gaming revenue in the major regional markets nosedived in November, meaning that we may be in for a shock when Nevada’s GGR numbers for last month are released.

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Comments

Pat Higgins Dec-17-2020

Big Tex

Was in Vegas in October and frankly the gambling (table games) was really sad.  With fewer spots for players--3 players per BJ tables for example and only 3 spots on each end of a craps tables you had to wait in line to get a spot to play.  Also a lot of craps tables had plexly glass and it was hard to impossible to have a decent throw.  You might have to  wait several hours to get a spot on a table and then you might have an argument with another player if a spot opened up.  We actually checked out of the casino hotel early and flew home.  Won't go back until things  improve greatly.

Dave in Seattle. Dec-17-2020

Wait in line.

At the Tulalip tribal casino in Marysville, you took a "number" (pager) and wait until a spot on the craps table opened up. $15 minimum, last month. Now, That place is NO SMOKING.

Seamans Dec-17-2020

gambling more?

Most casinos have raised the minimums on the table games. It is hard to find a decent $5 BJ game. Craps is $10. I am a low roller but I will roll a long time if the price is right. The casinos are just plain greedy. I personly am a lot more selective gambler. I just want to have fun. The casinos want it all right away.

Adumb Dec-17-2020

It kinda sucks now...

I was also at Tulalip Dave...and Snoqualmie outside of Seattle. I was in Vegas in September as well. The whole thing sucks now....the high limits really annoy me. As if we weren’t being squeezed tight enough before the casinos (it seems) are trying to get every dollar out of the few customers that walk in the door and it just isn’t fun anymore. I’m done until things open up again.

Kevin Lewis Dec-17-2020

Gouge mentality persists

Why are visitors gambling more? The answer is, since "more" refers to amounts bet (and thus, casino win) rather than frequency, it's the jacking up of table limits that's the culprit. That, and a lack of anything to do other than gamble.

So everybody, we should NOT return to Vegas, now, or EVER. Not EVER. How do they handle the pandemic? Put the squeeze on the people who DO come. Desperately try to make as much money as possible so that the annual report doesn't look too awful. Overcharge, under-serve, gouge, gouge, gouge.

This, folks, shows you how much respect they have for us. During past recessions, they slashed prices and rolled out the welcome mat. Now, they have cynically concluded that there will always be a hard core of addicts--who would come to Vegas even if it literally killed them--and the best short-term strategy is to milk those suckers for all they're worth.

I'm going to remember all this, Vegas, and when you want me to come back, I'll tell you to pound sand.

[email protected] Dec-17-2020

agree with kevin

I agree with Kevin on a lot of what he said,they raise  table limits just to try and show that they are doing alright,in all they are not.They make it sound like they are giving you something when i reality they are not.To stand in line to get on a table is just crazy.People will sit longer than normal just so they don't lose their seat in case they want to come back in an hour.I am planning on going out to las vegas in march,but now im wondering if i should stay shorter than usual due to if i get frustrated by not being able to gamble as i like to.Will things ever get back to near normal in las vegas,i don't think so,people are now seeing the real side of sin city on how greedy they can really be

MannyB007 Dec-17-2020

What does the future hold?

Will Vegas become a less expensive or more expensive destination following the pandemic?

Kevin Rough Dec-17-2020

Limits are higher

I was in Vegas in August.  I visited the Gold Coast, which typically has plenty of $5 BJ tables.  The weeknight that we visited they were all $20 and there were people playing them.  I think the higher end gambler is still visiting while the little to no gambling visitors aren't coming.

Question of the Day - 17 December 2020

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