This October’s Las Vegas Strip gaming turnover was announced mere hours ago by the Nevada Gaming Control Board. According to the financial report, revenue dropped by 5.6% to US$520 million, as compared to last year’s results. The fall in baccarat win was pointed as the main reason for this.
Generally speaking, baccarat win consists of the amount of money staked minus the prizes that were paid to players.
Back in October, baccarat win in Las Vegas and all around the area decreased 35.5% to US$97.3 million. What is more, it dropped by 24.9% to US$345.3 million for the three-month period ended October 30, as compared to last year’s figures.
Earlier this year, Union Gaming Research LLC, a popular Macau- and Las Vegas-based research firm, contributed June’s 155% growth in the Strip’s baccarat win to a probable increase in the number of Chinese visitors, traveling to the famous American gambling Mecca.
Baccarat is known to be extremely popular among Chinese and East Asian players as a whole. A total of 311 tables were offered to fans of the game on the Strip by October 30.
Cameron McKnight, senior gaming analyst at Wells Fargo Securities LLC, stated that if baccarat and slot games were removed from the estimations, the October turnover would mark only a 1% drop as compared to last year’s results.
He also announced that baccarat volumes were 15% on the Strip and mass table volumes were 4%. In addition to this, volumes from slot machines were +4%.
The Nevada Gaming Control Board reported that gaming venues around the state posted a total baccarat win amounting to US$913.6 million, a 4.3% drop, as compared to last October.
Brent Pirosch, a CBRE analyst, commented on the decrease in baccarat win on the Strip as an imminent result from the fall that was witnessed in Macau. As mentioned before, a significant drop in Chinese high-rollers’ spending was marked at the Asian gambling hub.
Gross revenue from VIP baccarat decreased 4.1% in Macau in the first nine months of this year. A total of MOP166.5 billion (US$20.8 billion) was reported to have been earned during the period.
This market-wide downfall trend was ascribed to several factors. According to analysts, the current mainland anti-corruption campaign against Chinese officials has significantly affected profits from gaming activities. What is more, the slump in credit volumes by country’s banks as well as the overall economic instability in China are also among the most probable reasons.
Apart from Macau and Las Vegas, a drop in baccarat wins was marked in Singapore, as well.
Mr. Pirosch commented on the situation as a “global VIP problem”. According to him, when several high-rollers stop playing, this imminently influences the baccarat win.
