Nevada Revenue Records Modest April Growth

The gambling capital of the United States reported a 2.7% year-on-year increase in gambling revenue for April 2023. This positive result reflects the resilience and recovery of Nevada’s gambling industry despite ongoing challenges. However, lacking momentum means that the state’s winning streak may be nearing its end.

Slots and Sports Betting Spearheaded Growth

April marked another month with gambling revenues exceeding the $1 billion mark. Nevada casinos made $1.16 billion, a 2.7% year-on-year increase. The result was a notable drop compared to March’s $1.31 billion, but that decrease can primarily be attributed to seasonal trends. Overall, the state’s gambling sector remains healthy despite lacking momentum.

Sector-wise, slot machine revenues traditionally contributed the most to operator bottom lines, generating $837.9 million. This 4.2% increase compared to April 2022 was enough to offset the 0.8% drop in table, counter, and card game revenues which settled at $321.8 million. Blackjack remained the most popular game, followed by baccarat, craps, and roulette.

Nevada’s sports betting sector performed significantly better than last year, bringing in $32.4 million. The 27.6% yearly increase is primarily due to a stacked sports calendar and the state’s ongoing efforts to attract various leagues. Bets on basketball led the pack, generating revenues of $15.2 million. Football wagering notably netted a $4.9 million loss for operators.

Normalization of Revenues Was within Expectations

The positive year-on-year increase in gambling revenue in April 2023 sets an optimistic tone for Nevada’s gambling industry. Despite last month’s slump, overall revenues are again on the rise. High-profile operators in the state have started to diversify their offerings, hoping to attract visitors with a wide range of entertainment options beyond traditional gambling activities.

The return to single-digit growth also signals a long overdue market correction that has become evident over the past few months. According to Nevada Gaming Control Board senior analyst Michael Lawton, the initial post-pandemic frenzy has mostly subsided. Despite normalized revenues, the initial boost was enough to get operators back on their feet, allowing them to return to a sustainable business model.

April’s slight year-on-year revenue increase marks a return to normality for the state’s gambling industry. Nevada’s casinos and resorts demonstrated significant resilience during the pandemic and were rewarded with a stellar 2023. Farsighted businesses used the opportunity to prepare for the inevitable market normalization, promote diversification and invest in long-term projects.