Gambling Revenues Continue to Fall in Nevada

By Paul Ausick Published Jul 12, 1:14PM EDT

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

In its latest report on gambling revenues in the state, the Nevada Gaming Commission said that total revenue for May 2012 came in at $885.1million, down -10.05% compared with May 2011. For the first eleven months of the fiscal year, state-wide revenues are up 1.26%. The Las Vegas Strip accounted for more than half of the state’s revenue, with a May total of $475.1 million, down -18.2% from May 2011. Revenues from The Strip are up 1.1% this year.

First quarter EPS estimates for MGM Resorts International (NYSE: MGM) and Ceasars Entertainment Corp. (NASDAQ: CZR) have both fallen, with an expected EPS loss of -$0.14 at MGM and -$0.91 at Ceasars. Wynn Resorts Ltd. (NASDAQ: WYNN) and Las Vegas Sands Corp. (NYSE: LVS) are expected to post first quarter EPS of $1.56 and $0.62, respectively. Wynn’s profits are expected to be lower than the same period a year ago, while Las Vegas Sands is expected to boost EPS by $0.08.

But higher profits will depend on revenues from the casinos’ holdings in Asia, principally in Macau. And revenues there are declining as China restricts visitor visas to the former Portuguese colony and sets limits on credit card spending at the Macau casinos.

Here are a few interesting numbers for the Nevada report:

Total slot machine revenue from The Strip represented more than half the state’s win at Strip casinos.
Penny slots provide 3x the revenue of dollar machines at Strip casinos.
Baccarat, bingo, and 21 revenues have fallen -47%, -47%, and -36% respectively, year-over-year at Strip casinos.
Slot machines provided about 68% of statewide revenue.
Baccarat, bingo, and 21 revenues are down -48%, -44%, and -29%, respectively, year-over-year statewide.

The casino stocks are getting hit hard on the Nevada report. Ceasars is down more than -13% at $8.95 after posting a new 52-week low of $8.78. The previous range was $9.00-$17.90.

MGM shares are down -4.1% at $9.80 in a 52-week range of $7.40-$16.05. Wynn shares are off -4.8% at $97.18 in a 52-week range of $95.82-$172.58. Las Vegas Sands’ shares are off -4% at $39.37 in a 52-week range of $36.08-$62.09.

The Gaming Control Board’s full report is available here.

Paul Ausick

Contact [email protected] for any questions or corrections.

DISCLOSURE:

Customer must fund their Active Invest account with at least $50 within 45 days of opening the account. Receive a minimum of $15. Probability of member receiving $3,000 is a probability of 0.026% If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Percentages for the $3,000 are subject to decrease. See full terms and conditions.

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org). Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation.

Follow 24/7 Wall St. on Google

About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.