Wendover casinos loosened the odds a bit too much and turned what could have been a double digit increase in gaming win this May into a 3.5 percent drop according to this weeks report from the state gaming control board.
According to the report casinos in the Nevada/Utah border town reported $14.23 million in gaming win down about 3.5 percent from the same month last year.
“Win” is a gross figure, with no operating costs or other expenses deducted. And it’s casino revenue only _ separate from hotel, restaurant or bar revenues generated by the resorts.
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While win indicates a casino market’s profitability another statistic “play” is an indicator of how casino workers are fairing. With some casino workers dependent on tips for up to half of their total income, play, the amount of money wagered by gamblers is a good indicator of how much casino workers received in tips and how many gamblers are actually in the casino.
Wendover casinos have seen both their win and play numbers on a general decline since the Great Recession hit the border town in 2007. Currently the Nevada/Utah border town is running close to 20 percent less in gaming win than it was during its heydays of the mid-2000’s.
May’s numbers were however different than the slow, steady erosion seen in the last two years.
While win was down, play was up dramatically. In slots total win fell 2.5 percent to $11 million. Play however shot up 12.3 percent to $204.3 million from may 2010. The difference was in hold which fell almost a full point from 6.27 percent last year to 5.39 percent this May.
Figuring the right slot hold is both an art and a science in the modern gaming industry. With computerized systems and ticket in ticket out payoffs, casinos have precise control on just how much is kept. The art is finding the right balance between just how much the casino keeps and how much it pays out to keep the seats full. If the slots are too “tight” even the most one armed bandit player will become discouraged but if the are too loose the casino will lose money or rather not make as much as it could have made. If hold had remained the same from last year Wendover slots would have reported a hefty 12 to 13 percent increase in win.
The same was true on the tables. According to the report total games’ win was down 3.9 percent to $3 million, but play was up 2.9 percent to $8.4 million. The difference was again in hold which fell from 22.22 percent in May 2010 to 21.04 this May.
For the fiscal year Wendover clubs are down 2.11 percent to $150 million.
In the balance of Elko County, local casinos reported a total win of $9.27 million up 4.63 percent from May 2010. Slot win was up 3.1 percent to $8.2 million. Slot play was up 3.8 percent to $107.4 million. Slot hold fell but only slightly from 7.66 percent to 7.61 percent. Table win was also up by a whopping 19.2 percent to $1 million. Table play increased 8.1 percent to $4.1 million while hold went up from 22.81 percent in may 2010 to 25.14 percent this year.
In the entire state Nevada casinos posted a big gain in May, reporting a total gambling win of $984 million, an increase of nearly 16.2 percent compared with the same month a year ago, the state Gaming Control Board said Monday.
“This is the largest total win since Sept. 2008 and the largest percent increase since December 2006,” said Mike Lawton, senior analyst with the Gaming Control Board.
For the 11 months of the fiscal year, total win is up nearly 2 percent statewide and 5.2 percent on the Las Vegas Strip.
Taxes collected in June on the May winnings totaled $68.3 million, up 17.6 percent. Because casino’s pay taxes based on winnings in the previous month, collections for the fiscal year that ended June 30 were $651.8 million — up $3.9 million or less than 1 percent — over projections made by the Economic Forum.
Resorts on the Strip — Nevada’s gambling mecca that accounts for half of statewide casino revenues — posted a 29 percent increase in winnings for the month, up $130.2 million to $580.5 million.
For the Strip, it’s the largest win amount since January 2008, Lawton said.
The $2.9 billion gambled on games was up $474.2 million, while the $9.29 billion pumped into slot machines was off slightly by 0.5 percent.
Part of the statewide gains is attributed to a soft comparison for the same month a year ago, when the win was down 4.7 percent. Two special events — the May 7 Pacquiao-Mosley bout and a UFC card on May 28 — also helped spur Las Vegas casino action, Lawton said.
Baccarat, a high roller game favored by Asian players, accounted for $142.8 million of the statewide win after gamblers spent $1.2 billion. Both the win and the amount wagered are a May record for Nevada, Lawton said.
In Reno, the $48.5 million won by casinos was down 7.7 percent in Reno. For Washoe County as a whole, winnings dropped 6.63.
“Reno has not had a positive month this calendar year,” Lawton said.
Winnings were up 7.9 percent in downtown Las Vegas and 15 percent at South Lake Tahoe, but down 0.4 percent in Elko and 2.2 percent in the Carson Valley area.
Gains were seen in some local markets — smaller neighborhood casinos that have been slow to rebound after the Great Recession left Nevada crippled with record joblessness, bankruptcies and foreclosures.
Las Vegas local markets were up 2.3 percent and “may be picking up traction, which is a good thing,” Lawton said.
Analysts, however, remain skeptical.
“We continue to be apprehensive about the overall recovery in the Las Vegas locals market,” Bill Lerner, an analyst with Union Gaming, said in a note to investors.
While unemployment numbers improved in May to 12.1 percent — down from a record 14.9 percent in December — the state’s joblessness is still well above the 9.1 percent national rate.
“In our opinion, the fall in statewide unemployment is a false positive and has been a result of outmigration and a declining work force rather than economic improvement,” Lerner wrote.