According to some reports, the pre-pandemic revenue of Las Vegas casinos has exceeded the benchmark set in 2019. The executives of Boyd Gaming and Red Rock Resorts made this known last week.
Interestingly, the Gaming Control Board also confirmed their assertions. If that’s the case, what could have caused the boom in the Las Vegas casino industries? Also, it doesn’t seem like the land-based casinos in Las Vegas are doing anything differently from last year.
Nonetheless, let’s take a close look. Was anything done differently? Let’s see!
Las Vegas Casinos Approach That Exceeded the Pre-pandemic Revenue
From all the findings, it doesn’t appear that the casinos in Las Vegas did anything differently to attract the huge revenue that is recorded. According to Steven Wiecznski, Stifel Financial gaming analyst, there seems to be no exact reason for the growth recorded. Steven also added that the market operating factors in the Las Vegas casino industry had remained the same.
However, it appears that other gaming analysts perceive the reason for the growth in Las Vegas casinos’ pre-pandemic revenue from a different perspective. Carlo Santarelli, the Deutsche Bank gaming analyst, pointed out some factors that may have caused the increase in revenue of Las Vegas casinos. Carlo outlined the following as the reason for the growth:
- Young Players: According to Carlo, younger players are visiting the casinos more often. Amazingly, the younger players seem to spend more at the casinos too.
- Non-Gaming Activities: Although non-gaming activities have not fully resumed in some Las Vegas casinos, revenues from restaurants and movie theatres at the casinos have also increased.
- Tax Rate: Considering Nevada’s “favorable” 6.75 percent tax rate on gaming revenues has also improved casinos’ take-back.
Aside from all these factors, Wiecznski also pointed out that Southern Nevada’s growing retiree base may have also improved the patronage at the real money casinos. Besides, casinos are now offering diversified amenities on their properties.
Overview of Boyd Gaming and Red Rock Casinos Pre-Pandemic Revenue
Boyd Gaming and Red Rock Resort Casinos are some of the biggest names in the land-based casino industry located in the Las Vegas Valley. They currently operate more than two dozen casinos in the area.
In a report released by Boyd, the casino company recorded $236.1m as their total revenue in the quarter that ended June. This is 6.9 percent higher compared to the same quarter in 2019. Also, within the same period in view, Red Rock recorded a total of $426.4m as revenue.
Despite the huge revenue recorded by these casinos, Boyd and Red Rock Resort have kept some of their locations closed to date. Of course, the pandemic is the reason for the closure of the locations. Nevertheless, it appears Red Rock Resort is on the verge of selling their off-Strip Palms Casino to the San Manuel Indian Tribe. The deal is expected to make Red Rock Resort $650m richer.
The Gaming Control Board New Casino Regulations
Although more than half of the residents have been vaccinated, it appears that the Gaming Control Board wants to impose a new casino regulation. The Gaming Board informed casinos in the counties that despite the success in the vaccination of residents, employees and customers have to wear a mask.
Despite the vaccination of most residents, the Center for Disease Control and Prevention has recommended wearing a mask to reduce the spread of the pandemic. Also, it does appear that gaming operators are not opposed to the new regulations. Smith Keith, the CEO of Boyd, told reporters that his company would wholeheartedly accept the changes. Besides, such regulation doesn’t seem to affect their business. Having navigated through tougher times, wearing a mask by customers and employees would not pose any threat to the casinos.
Effect of Wearing a Mask at Las Vegas Casinos
Wearing a mask will not affect the operation of the land-based casinos as recommended by the Gaming Board.
The gaming operators in Las Vegas accepted the new regulations set out by the Gaming Board. Besides, having gone through months of several lockdowns, there is no way wearing a mask would affect their operations. Wiecznski, during his interview with reporters, said the wearing of a mask would also help stop the risk of the new variant spreading.
Is the Las Vegas Casino Revenue Growth Levels Sustainable?
Considering that the pandemic has not fully been eliminated, it may seem that the growth in casino revenue may be impeded. However, with online casinos fully legal in Nevada, the online gaming platforms can complement the land-based casinos.
Finally, both the land-based and online casino markets have kept the Las Vegas gaming market vibrant. States that have not legalized online casinos may continue to suffer a decline in revenues.