US casinos post record May revenue figures
The casino industry in the United States is experiencing exceptional growth in its gross gaming revenue (GGR) following the COVID-19 pandemic. Through the American Gaming Association (AGA), commercial casinos in the country, often referred to as nontribal gaming facilities, had their best May record ever this year. The month was also named the second-best all-time month in the history of the domestic gaming industry.
The AGA regularly observes the gaming industry by taking note of and calculating the reports on monthly revenue of the 31 states where commercial casinos function. According to the trade group, around 18 of the observed states experienced year-over-year GGR gains.
The GGR at land-based casinos climbed by 1.5 percent in April, which led to a bit above 5 percent increase in the gains accrued by operators. Compared to other verticals in the gaming industry, slot machines continue to reign supreme by delivering more money than the rest. This past May, the machines earned $2.94 billion, which was around 58 percent of the gaming industry’s income. On the other hand, online gambling establishments had a monthly decline of 2.4 percent in terms of revenue.
The records showed that each of the last 15 months, Nevada casinos earned over $1 billion. GGR comfortably topped $1 billion in May, continuing a record-setting trend. Nevada’s casinos fared 5.7 percent better than they did in May 2021.
The Las Vegas Strip spurred the increase, as it attracted special event visitors. Las Vegas hosted Canelo Alvarez vs. Dmitry Bivol and the Electric Daisy Carnival music festival. Big crowds kept Las Vegas casinos busy throughout the month of May. Despite having one weekend day fewer in May ’22 than in May ’21, Strip casinos gained $731.5 million, over 12 percent more than a year before.
A senior economic analyst for the state, Michael Lawton, stated in May that: “This month’s total win amount represents the highest May total gaming win recorded all-time for the state, Clark County, downtown Las Vegas, and the Strip. Gaming win on the Las Vegas Strip benefited from special events and baccarat win amounts.”
According to the AGA, May marked the best three-month revenue streak the US casino industry had ever experienced. The Association released a statement that read, “As the mid-year mark approaches, the US commercial gaming industry continues to maintain momentum. Despite macroeconomic challenges and increasingly tougher year-over-year comparisons, March, April, and May have been the three best gaming months in industry history— each surpassing gamin revenue of $5 billion.”
While the sportsbooks recorded $555 million of the wagered bets, in-person table games earned $873.9 million. The iGaming revenue recorded was $406.4 million in total. Due to the addition of new states to gambling activity, the importance of sports betting has increased. The $555 million recorded by the sportsbook signifies a 103 percent income surge. The revenue of tables increased by 10.5 percent, and the iGaming platforms brought in around 31% more than they earned in May 2021.
As a result of the inflation that has been rampant throughout 2022, gaming play could be affected. According to the US Bureau of Labor Statistics, the prices increased by more than 9 percent year-over-year this week than in June.
Prices for household items have spiked, and economists are concerned about the looming recession. The hospitality sector and the gaming industry are usually the first groups to be affected in the middle of a recession. This is because, due to the shortage of funds, most travelers prefer to cut back on their leisure spending.
Although the Vegas Strip casino CEOs mentioned that they were yet to see any turndown, that is not the entire situation. In a recent interview with CNBC, Derek Stevens, the Downtown Las Vegas casino CEO, admitted that “every weekend has been worse than the prior weekend” for his Circa, D, and Golden Gate casinos.
Comerica Bank Chief Economist Bill Adams thinks casinos and hotels are particularly prone to inflation as Americans restrict their spending. According to the executives, while they did not doubt that inflation could trouble the Las Vegas and US gaming industry greatly, they simply did not see clear-cut signals that a recession was on the horizon.