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In the third quarter, Las Vegas Strip casinos still won money from gamblers, but gaming income as a whole declined—which makes investors understandably impatient because, after all, the house is always supposed to win, and win big.
Back in August, the conference calls for both Caesars Entertainment and MGM Resorts International were muted, ahead.
The September disappointment caps a challenging quarter during which net gaming win decreased by over seven percent.
Considering that, in their second quarter conference calls, casino executives were apologetic over a quarter that actually saw a nearly six percent net increase in gaming win on the Strip, one can only imagine the tenor of the third quarter calls when a net decline is on the books.
Looking at the last six months, the Las Vegas Strip is still down more than one percent compared to that period in 2017, so it seems likely that this is not a blip—there is a slight but perceptible downward trend for gaming win on the Strip.
There is an interesting pattern at work, and it speaks to a possible realignment of revenue on the Strip.
The dominance of baccarat las vegas casinos on strip less than 15 years old.
As Wynn Resorts, and Las Vegas Sands opened casinos in Macau starting in 2005baccarat, the game of choice of many Chinese high rollers, became an increasingly important part of the bottom line in Las Vegas.
Baccarat got more than one company through the worst of the recession.
But following a 2013 Chinese crackdown on graft, the flow of high roller funds to American casinos has slowed.
And, while baccarat had been trending upward, that momentum has reversed, as total baccarat win fell to levels last seen before the recession.
Is this baccarat decline an aberration?
That has the makings of a new reality on the Strip, which could be worrisome.
And, if the companies that run Las Vegas casinos continue on their post-recession las vegas casinos on strip, the diminishing size of baccarat win could spell big trouble.
If anything, from an out-and-out trade war to simple skittishness on the part of international high rollers, is going to permanently depress high end play, the big casinos that dominate the Strip—and corporate balance sheets—could be in trouble.
Doubtless the third quarter conference calls will speak of optimism for the fourth quarter and higher convention bookings in the coming year, which, like swallows returning to Capistrano, are paragons of las vegas casinos on strip />And the optimism may not be far off, particularly if the summer triggers a change in how Las Vegas casinos are marketed.
Baccarat, remember, got Las Vegas through the recession, when click here retail play was curtailed.
In 2018, though, it is that retail play that looks to be on the rebound.
Total slot win on the Strip increased nearly six percent in July; fell one percent in August; and grew by five percent in September.
Overall, slots showed over two percent growth for the quarter, which might not sound impressive.
Baccarat, though, fell 18 percent over that quarter.
Casinos could be relying more on similar machines if current revenue trends continue.
In order to bring these players free play slots in las vegas, casinos might have to back off some of the more aggressive revenue-enhancing elements that have characterized the Strip over the past decade, like resort fees, paid parking, and other added expenses perceived, rightfully or not, as nickel-and-diming by many loyal customers.
So while the initial reaction to that ongoing baccarat slide might be panic, worry, or even defeatism, the continued growth of casino gaming in Las Vegas might depend on how well casinos can adapt to what appears to be a new landscape.
History shows click the following article kind of realignment is to be expected.
Slots saved Las Vegas once before, in the 1980s.
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Check out my or some of my other work.
I grew up in Atlantic City, New Jersey, and worked in casinos there, catching bad guys and selling nuts not simultaneously.
That's how I got interested in studying… Read More I grew up in Atlantic City, New Jersey, and worked las vegas casinos on strip casinos there, catching bad guys and selling nuts not simultaneously.
That's how I got interested in studying casinos, gambling, games, and tourism.
Day job is directing the Center for Gaming Research and teaching history at the University of Nevada, Las Vegas.
Personal highlight: being interviewed by Henry Rollins for "Ten Things You Don't Know About Las Vegas.


Bellagio Hotel Casino Las Vegas Walkthrough October 2019


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