January’s record bitter cold bit into Wendover’s gaming industry which posted on of its largest declines in gaming win since the Great Recession.
According to last week’s report from the Gaming Control board Wendover total gaming win plunged 15.63 percent to just under $11 million.
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While there were other factors to the decline such as a loss in football betting and a later Chinese New Year, the arctic like weather that included five major snow storms and just one day of above freezing temperatures was certainly the major factor at least in Wendover’s decline.
“Markets like Wendover that rely so much on road conditions are especially vulnerable to weather,” said senior research analyst for the Gaming Control Board Michael Lawton.
The month of below freezing temps was the longest since accurate records began to be kept in the region in the 1920’s. The previous record was set during the winter of 1992/93 when in December and again in later January and February the temperature stayed below freezing for three weeks.
Apart from the general discomfort the unprecedented cold caused thousands of dollars in damage around Wendover mostly due to frozen and broken pipes.
“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.
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.
Slot win in Wendover was down 15.5 percent to $8.4 million. Slot play was down 9.8 percent to $161.1 million . Slot hold declined from 5.55 percent to 5.2 percent.
Win from table games and sports betting was down 16.1 percent to $2.6 million. Play was up 2.4 percent to $15.6 million. Hold declined from 21.76 to 20.21 percent.
For the fiscal year to date Wendover clubs are down 3.32 percent at $93.1 million.
Casinos in the rest of Elko County saw total gaming win drop 19.71 percent to $6.5 million. Slot win was down 17.4 percent to $5.9 million. Slot play was down 5.1 percent to $89.9 million. Slot hold was down from 7.5 percent to 6.53 percent. Table games were down 37.6 percent in the balance of Elko County posting total win of $574,000. Table play was down 20.4 percent at $2.1 million . Hold plunged from 23.6 percent to 18.5 percent.
In the entire state Nevada casinos suffered a 12.4 percent drop in their gaming win in January.
The state Gaming Control Board reported Nevada clubs won $909.1 million compared with $1 billion in January 2012.
According to Lawton, the Chinese New Year fell in February this year compared with January last year. That celebration attracts high-end gamblers from China and Southeast Asia, he added.
Another reason for the drop in winnings was New Year’s fell on a Monday; it was on a Saturday in 2012.
The casinos on the Las Vegas Strip took an even bigger hit, down 18.6 percent. And players won $6.2 million on football betting during the month that featured the college championship game plus the playoffs in professional football.
“We are hopeful that the gross win will rebound in February,” Lawton said.
Lawton also said this January was being compared to an 18.4 percent gain in the same month of last year.
“It was a difficult comparison,” he said.
Casinos on the Strip won $802.5 million before taxes and expenses compared with $925.4 million a year ago.
Baccarat win fell 50.7 percent to $95.5 million; that accounts for more than 50 percent of the state’s gambling. Slot winnings inched down 0.16 percent for the month.
Downtown Las Vegas casinos were off 4.9 percent, North Las Vegas was off 11.8 percent, Laughlin dropped 6.7 percent, and Mesquite fell by 5 percent.
Clubs in the balance of Clark County showed a 2.2 percent gain in gross win and those on the Boulder Strip held their own with a 0.7 percent increase.
For the fifth straight month, gaming win fell in Washoe County by 1.9 percent. Carson Valley was off 5.6 percent and South Lake Tahoe dropped 2.6 percent.
For this fiscal year, the state has collected $443.9 million in taxes, an increase of 5.5 percent.