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Robust Performance by Las Vegas Casinos
Boosts State's Winnings in November

By Jeff Simpson, Las Vegas Review-Journal
Knight Ridder/Tribune Business News

Jan. 14--The resurgent power of Las Vegas casinos was more than enough to offset weakness in Northern Nevada, driving the state's 4.3 percent increase in November casino win to $763.7 million, from $732.3 million in November 2002, according to Nevada Gaming Control Board numbers reported Tuesday.

Robust November performances by casinos on the Strip and the Boulder Strip, in North Las Vegas and downtown contributed to a 6.5 percent increase in Clark County casino winnings, to $631.4 million from $592.7 million.

Southern Nevada's vitality was mirrored by sluggish results in the rest of the state; casinos outside Clark County reported a 5.3 percent drop in casino win.

"Strong convention business in Las Vegas despite the smaller Comdex convention was a big factor in November," control board statistical analyst Frank Streshley said.

Much of the statewide gain was generated by slot players, who lost $503.1 million, 13.1 percent more than the $444.7 million they lost in November 2002.

The amount bet on slots, the sum of the total cost of every pull or button-push, called "coin-in" was up 1.3 percent, to $9.5 billion from $9.4 billion.

The slot win increase was partially offset by a decline in the win on table games, which dropped 8.1 percent to $254.8 million.

Blackjack win dropped 13.2 percent to $86.3 million, craps win was down 23.2 percent to $29.4 million and roulette win dropped 6.2 percent, to $20.1 million.

But the biggest table-game culprit was baccarat, which suffered from the double whammy of a slightly below average win percentage of 17.5 percent, with par about 21 percent, and a tough comparison with November 2002, when baccarat parlors reported 30.3 percent rate.

Streshley said operators blamed the continuing lack of high-end domestic and international play for the table-game downturn.

The Las Vegas locals markets and downtown reported solid increases in the amounts won from gamblers.

North Las Vegas' 11 casinos reported a $19.3 million win, up 44 percent from $13.4 million.

Station Casinos' Rancho Drive arsenal of Texas Station, Fiesta Rancho and Santa Fe Station dominate the market. The Cannery, Silver Nugget and Jerry's Nugget are a few of the market's other key properties.

North Las Vegas casinos have reported double-digit win increases in five of the most recent six months, and, since July 1 have reported a 20.8 percent increase in win, to $95.5 million from $79 million.

"No other market in the state is even in double digits," Streshley said.

In a Tuesday research note, Fulcrum Global Partners analyst Joe Greff cited an unfavorable calendar comparison that makes November's results even more impressive.

November had one fewer weekend day in 2003 than in 2002, he noted, a factor because weekend days are better revenue days than weekdays.

Compared to the projections made by the May 2003 Economic Forum, percentage fee tax collections from casinos for the first half of fiscal 2004 are 4.9 percent above the forecast.

The forum projected that the state would collect $305.5 million in percentage fee taxes through Dec. 31, but the actual amount collected was $320.5 million.

In a statement, Gov. Kenny Guinn noted the better-than-expected performance with a cautionary note.

"I am encouraged by continued moderate growth on the gaming front. However, we must keep this trend in perspective," Guinn said. "Our total gaming win since the beginning of the fiscal year began in July is (up) just 1.76 percent. Our gaming revenue collections are slightly ahead of the economic forum's projections, but our gaming win will need to increase in the coming months to remain positive."

-----To see more of the Las Vegas Review-Journal, or to subscribe to the newspaper, go to http://www.lvrj.com.

(c) 2004, Las Vegas Review-Journal. Distributed by Knight Ridder/Tribune Business News. STN,

 
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