Las Vegas Off-Strip Properties Fare Better Than Counterparts
The Las Vegas Strip has seen a steep decline in revenue in October year-over-year whereas local casinos continue to weather the pandemic much better.
Southern Nevada Casinos Stay Strong Despite Pandemic
Las Vegas casinos seem to be recovering at a different pace as the pandemic drags on and drains businesses’ purses. Yet, for casino companies targeting local communities beyond the glitz and glamor of the Las Vegas Strip, things do seem better already.
According to Nevada Gaming Control Board’s most recent report on the gaming results for October revenue at the Strip declined by 30% year-over-year, posting just $375.8 million. In comparison, local casinos posted a modest decline of 11%.
Southern Nevada casinos seemed to do quite well under the guidance of Boyd Gaming Corp. and Golden Entertainment. While Las Vegas’ properties depend on tourist influx, Southern Nevada properties beckon to locals who are happy to visit a casino that is a short drive away.
Now, though, even local properties have to face the added difficulty of handling a 25% reduction in capacity compared to 50% previously. One way or another, the new three-week slowdown will take a toll on business. According to Brenda Bussman from Global Market Advisors, the capacity reduction will lead to an impact on non-gaming amenities as well.
Locals Happy to Bolster the Economy
Recovery right now outside Las Vegas is fueled by locals who are happy to visit their nearby casinos and help gross gaming revenue grow. Something like this is not possible in Las Vegas where the main driver of traffic are airlines who have come to a grinding halt, despite some signs that restrictions may let up soon.
With a new round of tougher measures against the pandemic, though, air traffic is not likely to pick off very soon. To get a better grasp of the situation with airline traffic, McCarran International Airport posted 57% decline in passengers in October.
International passengers, though, were down 95%, and McCarran is unlikely to see the milestone 1 million international passengers this year. It’s in this context that Boyd and Red Rock Resorts have said that they would continue to favor local gaming over The Las Vegas Strip.
According to Golden Entertainment Chief Financial Officer Charles Protell the company has been helped a lot by the fact that it doesn’t rely on conventions and meetings as much as other Las Vegas Strip properties, making the casino fairly resilient in the lack of customers and more importantly, big business events.
Businesses on the Las Vegas Strip have certainly suffered with restrictions see-sawing in Park County to the point where they have become difficult for most business-owners to keep up with.
Right now, though, for business to return back to normal, Nevada will have to try and rein in the exploding numbers of covid-19 infections spreading across the state that have prompted Gov. Steve Sisolak to issue the new round of restrictive measures. Sisolak has cautioned that unless the numbers are brought under control, Nevada may need to introduce even harsher measures.