Downtown Las Vegas Continues To Outperform The Strip In 2015
With revenue in the world’s largest gaming destination, Macau, China, falling to its lowest level since November 2010, casino investors have been looking to the state of Nevada for some much-needed good news this year. The state's Gaming Control Board recently released its report on gaming revenue for the month of May. Here’s a summary of the report.
Nevada’s nonrestricted gaming licensees reported a total “gaming win” of $1,003,548,230 in May, a 3.33 percent year-over-year increase. The updated fiscal year picture, however, remains weak. Total win from July 1, 2014 through the end of May is down 0.99 percent from the previous year.
Las Vegas Strip
More than $601 million (nearly 60 percent) of Nevada’s total gaming win in March came from the Las Vegas Strip. Shareholders of strip mega-resort operators Wynn Resorts, Limited (NASDAQ: WYNN), Las Vegas Sands Corp. (NYSE: LVS), MGM Resorts International (NYSE: MGM) and Caesars Entertainment Corp (NASDAQ: CZR) are watching Strip numbers closely.
Win numbers for the Vegas Strip were some of the weakest in the state, as the May number represented only a 1.39 percent year-over-year gain. However, the current fiscal year totals for the Strip are the worst of any gaming area in the state, lagging the state’s overall numbers and trailing the previous fiscal year’s total by 3.25 percent.
While the Vegas Strip is struggling, historic Downtown Las Vegas’ numbers continue to be relatively strong. Fiscal year numbers for Downtown Vegas are slightly ahead of last year’s numbers by 3.17 percent, but the May total gaming win for downtown was $44,574,376, a 15.45 percent increase from last May’s numbers.
Shares of Boyd Gaming Corporation (NYSE: BYD), which operates three downtown casinos, are up 16.5 percent year-to-date.
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