Sunday, July 20, 2008

Vegas going into the Toilet - Another disturbing datapoint

I've been stating for awhile (Feb & April posts) that I expected Vegas to really get hit by this consumer slowdown. It seemed to me, the last two times I have gone, that it was increasingly more and more expensive to go there and nothing was free anymore. Hotels weren't cheap, cheap dining options were dwindling, freebies (comps) were down, etc. Don't get me wrong, I think there are tons of cool new options but, as their costs are higher than historic levels, they pass it along so they can make $$$.

Here is some supporting data

Nevada gaming is seemingly in a freefall, earning 15.2 percent less in May 2008 than in May 2007. Put another way, it's the worst May in 10 years. The decline is across the board, with the Strip at 16.4 percent less, downtown at 17.3 percent less, Mesquite at 3.2 percent less, North Las Vegas at 29.4 percent less, and Boulder Strip at a whopping 30.2 percent less.

Gambling on tables and slots were shown to be down approximately the same amount, at 15.7 and 15.1 percent, respectively.

In table games, blackjack was down 26.2 percent, craps was down 7.3 percent, roulette was down 27.7 percent, and baccarat was down 0.6 percent.

The downturn also equates to less tax money going to the state, almost $19 million less. Either taxes go up or spending gets cut...

Dan Ross

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