• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Nevada Business Magazine

The Decision Maker's Magazine

Subscribe Now!

  • Subscriptions
    • Print
    • Mobile App
    • Email
    • Nevada News & PR Wire
  • Features
    • New This Month
    • View Issues
    • Cover Stories
    • Feature Stories
    • Industry Focus
    • Building Nevada
    • Special Reports
    • Press Release Wire
    • Nevada Industries
  • Departments
    • A Matter of Opinion
    • Around the State
    • Business Indicators
    • Commentary
    • Commercial RE Report
    • Crossfire
    • Expert Advice
    • Face to Face
    • Free Market Watch
    • Inside Politics
    • Power of Attorney
    • Profit & Loss
    • Speaking for Nevada
    • Tech.knowledge.me
    • The Last Word
    • Vital Signs
  • Planning Calendar
  • Advertising
    • Advertising Info
    • Advertising Staff
    • Submission Requirements
    • Online Advertising
  • Events
    • NBM Events
  • About
    • About the Magazine
    • Contact the Staff
  • Connect
    • Business Directory
    • Press Release Wire
    • Business Calendar
    • Submit Listing
    • Post Press Release
    • Add Your Event
    • Sign Up
    • Log In
You are here: Home / Features / Building Nevada / Gaming: Betting on a Comeback

Gaming: Betting on a Comeback

September 1, 2012 By Doresa Banning Leave a Comment

Nevada’s gaming industry today continues to recover, with some regions faring better than others.

“Both Southern and Northern Nevada markets are struggling right now,” said John Farahi, CEO of Monarch Casino & Resort Inc., which owns Atlantis Casino Resort Spa, in Reno.

State gaming revenue has been picking up slowly since it took about a $2.4 billion hit when the national economy headed south, data from the Nevada Gaming Commission show. Yet, it still has a way to go to reach its decade high.

At its most recent peak, in fiscal year 2006-2007, the Silver State’s casinos took in about $12.7 billion. The statewide gaming win dropped 19 percent the next few years to roughly $10.3 billion. Subsequently, it turned around and has risen since. At the end of fiscal year 2011-2012, on June 30, 2012, it stood at $10.7 billion.

The story of Southern Nevada’s gaming is similar—one of a big drop between 2007 and 2010, then a slow climb—but that of Northern Nevada’s isn’t. Washoe County’s gaming revenue has decreased annually since its past 10-year high in fiscal year 2005-2006.

Stable In The South

Gaming in Southern Nevada is stable but not thriving. Its revenue in Clark County has increased year over year since the start of fiscal year (July) 2010. For the fiscal year 2011-2012, it was $9.2 billion.

“The industry is improved over last year, and we are confident we will continue to see improvement,” said Rossi Ralenkotter, president and CEO of the Las Vegas Convention and Visitors Authority (LVCVA), the destination marketing organization of Las Vegas.

More people are visiting Southern Nevada and about 70 percent gamble, but they’re spending less on the activity than previously. The average gaming budget of those who played in Las Vegas in 2011 was $447.63, down from $555.64 in 2007, according to the LVCVA 2011 Visitor Profile.

“It’s really nothing more than a reflection of the broader instability in the economy,” says Jan Jones, executive vice president, communications and government relations, Caesars Entertainment Corp. “People aren’t sure what’s going to happen. Their gambling budgets are more conservative.”

Caesars Entertainment Corp. (formerly Harrah’s Entertainment Inc.) has fared well since 2007, purchasing Planet Hollywood Las Vegas in 2010, but its margins have declined about 10 percent since 2007, Jones said. The corporation owns or operates 12 Nevada casinos, nine in Las Vegas, one in Reno and two in Stateline.

“We’ve not only positioned ourselves where we can operate in an uncertain economy going forward to the far future, but we’re also developing an expansion pipeline,” Jones said.

South Point Hotel Casino & Spa, a single-owner (Michael Gaughan) property located off the Strip, also has done well since the recession, expanding every year since opening in 2005, but has been affected, says Tom Mikovits, director of marketing at South Point Hotel Casino & Spa, in Las Vegas. Its core business is locals who aren’t spending as much as they used to. The visitors it caters to tend to drive in from Southern California, but Native American gaming in that region has decreased that crowd.

“Michael has always believed that when times are tough, you loosen the purse strings, not tighten them,” Mikovits said. “He’s looking at the customer and what they want.”

Trouble Up North

The gaming industry is Northern Nevada is bleaker, with revenues on the decline since 2005-2006. The Washoe County gaming win for fiscal year 2011-2012 was about $739,000. Visitor counts were up in 2010 but fell in 2011, and totals for the first half of 2012 aren’t as high as they were for the comparable period last year.

The region faces a huge challenge in trying to turn the industry around in this depressed market, Jones said.

“How are you going to invest in infrastructure or even new entertainment amenities,” she asked. “It’s too difficult to get a return on those investments.”

About 60 percent of the lost gaming revenue is due to a combination of the weakened local, regional and national economies, Farahi said.

The other 40 percent can be attributed to the spread of Native American gaming in the area’s major feeder markets, including Northern California, Oregon and Washington, which accounts for about three-quarters of Northern Nevada’s gaming business.
“When like products became available, it was just more difficult to compete because it never had really evolved as a destination,” said Jones.

Unlike Las Vegas, which is an international destination, Washoe County is a regional one and hasn’t devised and worked a plan for growing different segments of the tourism market, Farahi said. Many believe this is, in part, due to past poor and revolving management at the Reno-Sparks Convention and Visitors Authority, the marketing organization promoting convention and tourism business in Washoe County.

In Northern Nevada, unfortunately, there has always been talk of what we need to do, but action has been lacking,” he added. “We’re hoping that the new [RSCVA] CEO Chris Baum and his team will be able to turn the corner and have a mid and long-term plan that they implement.”

Since the recession, there has been excess capacity in the number of rooms and gaming space, Farahi said. This has caused fierce competition among casino properties and, therefore, lowering of rates and even giving away rooms for free. Properties that were marginal at the outset have lost money. Two distinct classes of properties have emerged—those that have reinvested and improved and are capturing increasing market share and those that have and are not.

The parent company of the Atlantis Hotel Spa Casino has continued to reinvest in the resort since 2007, even completing a major expansion. Last month, the Atlantis received the Four Diamond award from the American Automobile Association, making it the third property in Northern Nevada with the honor. Having Four Diamond-rated properties in the region indicates to the traveling public they have the option of a fine resort to stay in should they visit.

“We feel that being the only Four Diamond property connected to the convention center is going to help the RSCVA attract more conventions to our destination and help us book meetings for the more discriminating or demanding traveler,” Farahi said.

Virtual Gaming Emerges

Online gaming, in which money is transacted, is entering Nevada’s economic picture, with the first such offering slated to go live by year’s end.

“It’s here now, and it’s the future of gaming,” Mikovits said. “Nevada will hopefully set the blueprint for the rest of the country.”

Last year, the U.S. Department of Justice reversed its interpretation of the 1961 federal Wire Act, now saying it only applies to sports betting, not all online gaming. On the heels of that opinion, Gov. Brian Sandoval signed into law Assembly Bill 258, which mandated the Nevada Gaming Commission adopt by Jan. 1, 2012 regulations for Internet poker and its derivatives.

Per those initial rules, manufacturers and operators of interactive gaming systems must be licensed, along with service providers, who act on behalf of operators (i.e., software providers, gaming system developers and marketing firms).

Finally, certain interactive gaming systems and their components must be approved by the Nevada Gaming Commission.

Only Nevada residents and visitors while in the state can participate in Nevada’s online gaming offerings.

Last month, the Nevada Gaming Control Board recommended approval of the first two interactive gaming operators licenses, one for South Point Poker (affiliated with South Point Hotel Casino & Spa) and one for Monarch Interactive Inc. (affiliated with the Atlantis Hotel Casino Spa).

South Point, which also received approval for a manufacturing interactive gaming license, has developed, with a local entrepreneur, an online poker gaming system, which currently is undergoing mandatory testing.

Monarch plans to investigate all possible Internet gaming opportunities, Farahi said.

A second, large Reno hotel casino, in a joint venture with 3G Studios Inc., also plans to launch an online poker site, said James Kosta, CEO of 3G Studios. 3G Studios is a Reno-based developer of gambling games, casual social/mobile games and console-based video games. Those companies are pursuing interactive gaming licenses currently.

A handful of game makers, including Bally Technologies Inc., International Game Technology and Shuffle Master Inc., also have applied for interactive gaming licenses.

“We think the next thing to get legalized is statewide sports betting.” Kosta said. “Bingo will be right up there. Then you’ll start to see the chance-based games.”

Experts disagree on whether the future of online gaming threatens the brick-and-mortar kind. Some consider it different and, therefore, complementary to what already exists.

“I do not see that you can get the same kind of entertainment value, excitement and amenities that you will find in a resort with what you can achieve on the Internet,” Farahi said.

Others believe it could have a negative impact.

“I’m somewhat concerned about Internet gaming,” said Caesars’ Jones. “If people have an option to gamble online, it could change the number of visits they make. I think that poses a real threat to our entire economic base, our job base.”

Future of Nevada Gaming

Clark County gaming revenue is on the rise. Will it continue?

It will, Jones said, once people feel more comfortable spending their discretionary cash.

“I think you’ll see Las Vegas and other family markets come right back,” she added. “People like to gamble as entertainment. I just don’t expect it in 2013 or 2014.”

The industry in Clark County could get back to its $10.7 billion high in 2006-2007, but right now, it will settle for consecutive-quarter growth in gaming revenue.

“That’s what we’re all looking for,” she added. “I think that we are very well positioned for the future.”

Northern Nevada, on the other hand, most likely already has seen the highest gaming revenue ($1 million) it will, said Chris Baum, president and CEO of the RSCVA.

“With gaming available in 48 states, we’ll never have an industry like we did in years past,” he added.

Farahi agreed, “the more realistic scenario is going to be that we have excess capacity, and frankly, some of the struggling marginal properties are going to go by the wayside. The stronger ones are going to do that much better.”

Since Baum joined the RSCVA earlier this year, the organization has been promoting Reno-Tahoe as a four-season destination resort that features gaming as opposed to a gaming destination.”

“That’s a rather large mental shift for people to make here because gaming has been so dominant for so many decades,” Baum said.
As for the online component, Mikovits said he thinks short- and long-term revenue are both in Internet gaming.

“We have to be forward thinking,” he said. “Nevada has to lead the national charge in online gaming.”

Filed Under: Building Nevada Tagged With: 3G Studios, American Automobile Association, Assembly Bill 258, Atlantis Casino Resort Spa, Atlantis Hotel Spa Casino, Bally Technologies Inc., Brian Sandoval, Caesars Entertainment Corp., Chris Baum, Clark County, Four Diamond award, gaming industry, International Game Technology, James, Jan Jones, John Farahi, Kosta, Las Vegas Convention and Visitors Authority, LVCVA, LVCVA 2011 Visitor Profile, Michael Gaughan, Monarch Casino & Resort Inc., Monarch Interactive Inc., Native American gaming, Nevada Gaming Commission, Northern California, Northern Nevada, Oregon, Planet Hollywood Las Vegas, Reno, Reno-Sparks Convention and Visitors Authority, Rossi Ralenkotter, RSCVA, Shuffle Master Inc., South Point Hotel Casino & Spa, South Point Poker, Southern California, Southern Nevada, Stateline, The Strip, Tom Mikovits, U.S. Department of Justice, Washington, Washoe County, Wire Act

Sponsored Features

Sponsored Features

Sun City Anthem HOACashes in on Water Savings

U.S. Bank’s Good TruckComes to Las Vegas

GC Garcia, Inc. Celebrates 25 YearsAnd Looks Back on Southern Nevada’s Changing Landscape

Las Vegas Valley Water DistrictSupports Local Fire-Fighting Efforts

Advertise With Us

Advertise With Us. more details ►

Primary Sidebar

Education OutlookBig Issues and Hard Work for K-12

Industry FocusBuilders & Developers

Industrial SubmarketDemand Over Pandemic

Cyber SecurityKeeping Your Business Safe

Nevada News & PR Wire

  • Las Vegas-Based Pandmedic Solutions Donates 10,000 Face Masks to Non-Profit Core and Two Opportunity 180 Schools

  • Korin Woods Named Executive Director of Nonprofit UNSHAKEABLE

  • CSN First-Generation Student Named Regents’ Scholar – the Honor Includes a $5,000 Award

  • Cure 4 the Kids Foundation Tees up 9th Annual Golf 4 The Kids

  • Call for Proposals for Two Visit Carson City Murals

  • Northcap Commercial Arranges Sale of Azure Park Apartments for $2,854,000

  • Special Olympics Nevada to Host 2021 South Lake Tahoe Plunge at Round Hill Beach Resort

  • City of Las Vegas Launches Smart Curbside Management Corridor with Cox

  • De Castroverde Law Group Announces Winners of Its Fall 2020 Teacher Appreciation Awards

  • NAIOP Southern Nevada Urges Congress to Pass the Southern Nevada Economic Development and Conservation Act

  • Dueling Axes Announces Spring Specials and Weekly Programming

  • Desert Radiology Receives Renewal as Diagnostic Imaging Center of Excellence From American College of Radiology

  • Junior Achievement of Southern Nevada Announces New Board Member Hilary Nelson of Lexicon Bank

  • Cure 4 the Kids Foundation Recognizes Founder Annette Logan-Parker – Dr. Suess-Themed Patient Examination Room Dedicated During Nevada Reading Week

  • Local Business Owner Accepted Into Goldman Sachs 10,000 Small Business Program

  • James M. Wright Named Chief Marshal for the Nevada Appellate Courts

  • CAMCO Employees Demonstrate Their Giving Hearts in February

  • Nevada Donor Network Applauds AOPO’s “50,000 Organ Transplants by 2026” Campaign that Focuses on Improving System and Saving More Lives

  • Reno Aces and Greater Nevada Credit Union Help Youth Sports Return to Play

  • Diversity in Practice Panel to Explore Middle Eastern/South Asian Representation in Law

  • Founder of “Gracefully Greying”, Family Attorney Henry S. Gornbein Joins Lipson Neilson as Of Counsel

  • La Strega’s Weekend Fish Market Continues, Scheduled for Sun., Mar. 7

  • Prominence Health Plan Advises Nevadans to Protect Themselves from Medical Scammers

  • A Virtual Restaurant and Fast Casual Concept Set to Debut in Henderson

  • Suit up and Help End Childhood Cancer With St. Jude Children’s Research Hospital®

  • Faith Lutheran Middle & High School’s Conservatory of the Fine Arts Presents Filming the Arts – Student Showcase Proceeds Benefit Renowned Fine Arts Program

  • Carson City Named Top Place in America to Travel Right Now and Avoid the Pandemic by Forbes

  • Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP Relocates its Reno Office

  • De Castroverde Law Group Awarded Las Vegas Latino Bar Association Inspira Award

  • Virtual Poker Tournament with “Poker Brat” Phil Hellmuth Will Benefit Junior Achievement of Southern Nevada Mar. 13-14

  • Future Smiles Receives Unrestricted $25,000 Program Grant From LIBERTY Dental Plan of Nevada

  • Desert Radiology Encourages COVID-19 Vaccination Among Team Members and Community

  • Northcap Commercial Arranges Sale of MCR Apartments for $6,800,000

  • Helix Electric Announces Completion of Meow Wolf’s Omega Mart

  • Brooke Conway-Kleven Leads Cure 4 the Kids Foundation Physical Medicine Department

  • Coral Academy of Science Las Vegas Accepting Enrollment Applications Through Feb. 28

  • JING Las Vegas to Host Wine Tasting Tuesdays, Every Tuesday Beginning Tues., Feb 23

  • Reno Public Market’s Nettie Oliverio Elected as Pioneer Center Board Chair

  • Alaskan-Born Neeser Construction Expands in Reno-Tahoe

  • More Matcha on the Menu: Dunkin’ Debuts Blueberry Matcha Latte and New Matcha Topped Donut

  • Las Vegas Local Businesses Celebrate with February Events Margarita Day, Happy Hour Specials, Wine Pairing and Charitable Fundraisers

  • Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP Relocates its Las Vegas Office

  • Supreme Court to Consider Creating Commission to Study Water Adjudication

  • WGU Launches Initiative to Remove Barriers for Students With High Financial Need and Those Without Access to Federal Financial Aid

  • Applications Open for Nevada State College’s Newest Summer Bridge Program Designed for Incoming Black Students

  • Silver State Schools Credit Union Announces 2021 Scholarship Program Available To Graduating Nevada High School Seniors

  • Broadbent & Associates, Inc. Names New Director of Engineering

  • Nathan Adelson Hospice Names Cheryl Johnston as Clinical Manager for Pahrump Location

  • Former Las Vegas Police Officer Offers Help To Local Residents

  • Statewide Partners Unite to Facilitate Equal Vaccine Access Through Nevada Vaccine Equity Collaborative

  • Nevada Small Business Development Center Presents The Top 5 PPP Myths, Busted!

  • Jewish Nevada and Jewish Family Services Agency (JFSA) Team up to Launch Hebrew Free Loan Program to Assist Nevada’s Jewish Community

  • Cassie Catania-Hsu Accepted Into NAIOP Research Foundation Visionaries Program

  • Ascent Multifamily Now Offers Corporate Accounting

  • Nevada State Contractors Board to Hold 2nd Annual ‘Hammers & Hope’ Event

  • TMC Financing Helps Eby Iron Designs Secure Future with Building Purchase

  • Economic Impact of COVID Closures White Paper Published

  • ioneer and Caterpillar Complete Autonomous Haul Truck Feasibility Study and Sign Memorandum of Understanding

  • United Pain Urgent Care Launches in Reno

  • Terra Contracting Launches New Service Offering; Public Utilities to Save Millions

  • In Plain Sight Marketing Ditches Brick and Mortar Digs, Goes Virtual

  • Eleven Lipson Neilson Attorneys Receive AV Preeminent® Rating for 2021

  • Nevada Supreme Court Appoints Katherine Stocks as Director of the Administrative Office of the Courts and State Court Administrator

  • Cold Brew With Sweet Cold Foam and Chocolate Stout Cold Brew With Sweet Cold Foam Arrive at Dunkin’ Restaurants Nationwide on February 24

  • Desert Radiology Continues to Hire for Several Available Positions

  • Dr. Phillip Ruiz Joins Nevada Donor Network as Associate Laboratory Medical Director

  • Colliers Las Vegas Represents Sale of Undeveloped Land in North Las Vegas

  • Special Olympics Nevada to Host 2021 Las Vegas Polar Plunge at Cowabunga Bay

  • G.C. Garcia, Inc. to Host ‘Reading to Rescued Dogs’ Books & Pet Supplies Donation Drive to Benefit Spread the Word Nevada & Heaven Can Wait Animal Society

  • Steinberg Diagnostic Medical Imaging and SR Construction Break Ground on New Facility

  • Sandeep R. Pandit, M.D. Brings Hip and Knee Expertise to Crovetti Orthopaedics

  • NV Energy Foundation Provides $550,000 to Support Scholarships, Workforce Readiness & Student Emergency Fund. the Funds Will Provide Scholarships and Aid to Hundreds of CSN Students

  • NAIOP Southern Nevada Presents “Land: Why Our Future Depends on It” at Feb. 18 Virtual Breakfast

  • Concrete Slabs Poured at Latest Brass Cap Development Industrial Project in West Henderson

  • The Discovery Welcomes New Board Members

  • Deryk Engelland Joins the 8 News Now Team

  • Dress for Success Southern Nevada Welcomes Norma Intriago as Executive Director

  • Lutheran Social Services of Nevada to Celebrate Opening of Expanded DigiMart™ Food Pantry – Feb. 16 Ribbon Cutting Will Celebrate Completion of Expansion That Will Serve an Additional 5,000+ Families Annually

  • NAIOP Honors Southern Nevada Chapter With Three National Awards

  • Zero1 Off-Road, LLC Acquires Vegas Off-Road Tours, LLC and Transfers the Existing RZR Off-Road Experience to “Vegas Off-Road Tours”

  • Dermody Properties Promotes Kimberly Rossiter to Director of Property Management, West

  • RSAR Releases January 2021 Existing Home Sales Report

  • PureCare Living’s Newest Skilled Nursing Facility Enters Final Phase of Licensing

  • LPGA Pro Gigi Stoll Joins Reflection Bay Golf Club

  • Northcap Commercial Arranges Sale of 2566 Sherwood Street Apartments for $1,700,000

  • Business Continuity Technologies Protecting Las Vegas Business From Cyberattacks

  • MassMedia Marketing, Advertising and PR Signs Circus Circus Hotel & Casino Las Vegas

  • Colliers Las Vegas Industrial Team Sells Out Six-Unit Industrial Complex Valued at $6.6m During Pandemic

  • Tuscan Highlands Opens Second Round of Nominations for Valley’s Top First Responders

  • The Las Vegas Business Academy Announces Allyson Bunker and Candace Davis-Martin as New Board Members

  • Southern Nevada Housing Market Starts Year With Prices Still Rising

  • Two University of Nevada, Reno Graduates Earn Certificate in Principles of Public Relations

  • Reno Sportsdome Partners With Swift Orthopedic Urgent Clinic

  • Nevada State College Ranks #2 in Nationwide Search for Best Elementary Education Degree

  • College of Southern Nevada & City of Las Vegas Partner to Offer Education, Workforce Training in Historic West Las Vegas

  • Future Smiles Receives $10,000 Gift From Dentaquest – Nonprofit Will Use Funds to Support Local Children in Need of Critical Dental Services

  • Colliers Las Vegas Retail Broker Chris Clifford Promoted to Senior Vice President

  • Silver State Schools Credit Union Increases Share Insurance Coverage Up To $500,000

  • Lamar Advertising of Las Vegas to Honor African American “Firsts” Throughout Black History Month

  • ioneer Welcomes Rose McKinney-James as Non-Executive Director to its Board



 
Submit Your News & PR | Subscribe
Submit Your News & PR

Business Connection

Business Connection Portal

Log In Sign Up

Business Connection Portal

Log In Sign Up

Nevada Business Calendar

  • Ely Film Festival 2021
    March 12, 2021 12:00 pm

    Location: 501 E Aultman St, Ely, NV 89301, USA

    More details...
  • Play 4 JA Virtual Poker Tournament
    March 13, 2021 12:00 am

    More details...
View Full Calendar ►

Nevada Business Directory

Featured Businesses
Find a Nevada-Based Business Submit Your Business Subscribe to the Nevada News & PR Wire

Nevada Industries

Architects & Engineers
Arts & Culture
Banking
Commercial Real Estate
Construction
Credit Unions
Economic Development
Education
Financial Management
Healthcare
Human Resources
Insurance
Law
Manufacturing
Marketing
Media
Mining
Philanthropy
Residential Real Estate
Rural Nevada
Sports
Tax Planning and Accounting
Technology
Telecom
Tourism
Transportation
Utilities

Footer

Subscriptions

  • Print Subscription
  • Mobile App
  • E-mail Subscription

Editorial

  • Features
  • Departments
  • Events

Advertising

  • Advertise
  • Submission Requirements

Connect

  • Contact
  • LinkedIn
  • Facebook
  • Twitter

Copyright © 2020, Business Link LLC dba Nevada Business Magazine and Nevada Business Journal. Privacy Policy | Terms & Conditions
Nevada Web Design services by Nevada Central Media using Genesis Framework by StudioPress