Once again, Las Vegas has fallen short of revenue projections. According to new reports, LV Strip revenue is down by double digits in May. In Atlantic City, casinos are earning more than ever before. Is Sin City in trouble?
Casino gambling and sports betting continue to grow around the country. As more states begin to embrace these industries, Las Vegas revenue seems to drop. Let’s look at how much the Strip’s revenue has dropped, and why gambling revenue in Atlantic City is increasing so quickly.
Competition Leads to a Drop in LV Strip Revenue
Las Vegas is and always has been the gambling hub of the United States. The first casinos were constructed here in the 1930s and over the years many of the world’ biggest and most profitable casino companies have begun operating here. Unfortunately, gambling revenue has been dropping in the city for most of 2019.
Part of this is the competition that Vegas faces from other cities. Atlantic City is proving to be the biggest competitor. This wasn’t always the case.
During the Great Recession, Atlantic City was almost dead. Multiple casinos were forced to permanently close their operations, and revenue here was incredibly low. In May of 2018, New Jersey legalized sports betting, and the state’s casinos began to turn things around.
Over the past 13 months, New Jersey casino earnings have increased. More people located on the East Coast are choosing to gamble inside AC, as opposed to Las Vegas.
How Much Has Las Vegas Revenue Dropped?
May appears to be the worst month for Las Vegas of 2019. Reports show that gross gaming revenue on the Strip dropped by 11% overall. A number of casino games, in particular, struggled to generate any significant earnings.
Revenue from baccarat in Las Vegas dropped by a staggering 55% last month to just $53.85 million. Blackjack dropped by 14.8% to $67.4 million. Interestingly, slot revenue increased in the city by 6.3% to $117.8 million.
Since the beginning of this year, Las Vegas has experienced a year-on-year revenue drop every single month. It’s clear that the city is struggling to pull in the figures it did just a few years ago. Is sports betting to blame for all of this?
New Jersey Sportsbooks Earn More than Las Vegas
For the first time in history, sports betting revenue in New Jersey has surpassed Las Vegas’ revenue. In May, Atlantic City sportsbooks printed more than $318 million in wagers. Vegas sports betting platforms printed just $317.4 million. Incredibly, Vegas earned only $11.26 million of this $317 million.
Before PASPA was struck down, Nevada was the only state legally allowed to offer sports bets. Now that every state has the ability to legalize this industry, Las Vegas sportsbooks are experiencing a revenue decline. Today, a number of different states including New York and Pennsylvania offer legal sports betting platforms.
New Jersey is clearly the most profitable gambling market outside of Las Vegas. For more than a year, gambling revenue has increased here. Every casino in the state offers a legal sports betting platform, and most provide an online sportsbook, as well.
LV Strip revenue has dropped once again. How long will this continue? Stay tuned for more news on Las Vegas gambling revenue in the coming months!