Miriam Marcus, 12.10.08, 07:30 PM EST
Revenues at Nevada casinos plunged 24.6% in October.
The house may always win, but Las Vegas’ take-home has been dwindling lately.
On Wednesday, Nevada’s Gaming Control Board said that casinos on the Las Vegas Strip took in $475.0 million in gambling proceeds in October, a 25.8% decrease from the same month last year. Casino revenues statewide dropped 24.6% drop to $905.0 million in October.
With the recession leading to layoffs, credit persistently tight and the housing market slumping, Americans have curbed discretionary spending. Airlines have been reducing flight capacity to trim costs, which means less flights are coming into Nevada’s gaming center.
The numbers will likely show that the Las Vegas gambling market weakened further in the fourth quarter given the negative economic trends, Morgan Stanley analyst Celeste Mellet Brown said in a research note.
Control Board senior research analyst Frank Streshley said spending at casinos began to decelerate sharply at the end of September, adding that the October-to-October comparison was particularly harsh because casino revenues had hit an all-time high in October 2007.
Gambling revenues in Nevada have fallen for 10 consecutive months, and October’s year-over-year drop was the steepest on record…
