FANTINI ’ S FINANCE
On the Rise
All indicators point to a healthy and growing casino revenue picture
BY FRANK FANTINI
Both the latest data and anecdotal evidence continue to point to the health of the land-based U . S . gaming industry .
The latest statistical report from a major jurisdiction comes from Nevada . The latest anecdotal evidence comes from the just-held Indian Gaming Association convention and trade show in San Diego .
The Nevada revenue numbers can only be described as a blowout . Statewide gaming revenues in February jumped 11.15 percent over last year . The Las Vegas Strip was especially strong , soaring 18.92 percent . Table drop was about even as a 20.11 percent rise in baccarat offset a 4.74 percent decline in domestic indicator blackjack . Slot drop , perhaps the best indicator of the health of the American gambler , rose a healthy 11.02 percent .
Another indicator is that every Southern Nevada submarket rose healthily — Downtown Las Vegas , the various locals markets , Laughlin . That consistency was especially noteworthy .
Visitation and hotel rates also told a story of strength . Hotel occupancy continues its doubledigit growth over last year . And , while still low to mid-single digits below pre-Covid-19 , higher rates are pushing up revenues . February RevPAR along the Strip rose a hefty 29.6 percent over 2019 .
The only declines were in Reno and surrounding communities , but that was because of the historic snows that buried the Sierra Nevada Mountains , which separate the Biggest Little City from its largest feeder markets in Northern California .
On the anecdotal side , there was no need to make comparisons at the Indian Gaming Association event with 2019 . Attendee registration was simply a record . Period .
IGA , or NIGA as some of us veterans forgetfully continue to call it , may be a better barometer of business confidence than the Las Vegas numbers , which reflect consumer spending , or of G2E , which draws such a wide array of exhibitors and attendees for a variety of business reasons .
Motivation to attend IGA tends to be more simple and direct — a very high percentage of attendees are there to buy and a very high percentage of exhibitors expect to write business .
Thus , the big turnout at IGA did more than reflect recovery from Covid . It was an expression of business confidence by both suppliers and their casino customers whose dispersion across the United States can also be said to be a proxy for the health of regional gaming in general .
A Personal Note A longtime friend recently received an important and singular honor . IGT President of Sports Betting Joe Asher was appointed by President Biden as chairman of the board of the Wilson International Center for Scholars .
The Wilson Center is a congressionally created and funded think tank that tackles the great issues of international relationships .
The appointment might seem unusual for a gaming executive , but it is not unusual for those who know Joe as a keen intellectual mind , a former Wall Street attorney , a person whose integrative skills were proven when , now some years ago , he accepted and succeeded in the task assigned by thenemployer Cantor Fitzgerald to go to Nevada and win legalization of remote gaming .
After moving to Nevada , the young attorney pursued his enthusiasm for sports betting , by founding Brandywine Gaming , which launched and operated sportsbooks both under the Lucky ’ s name and those of various large casinos .
Joe and I share a heritage . We are both Delawareans . And , as I like to say , Delaware is not a state . It is a club . It is so small that we all know each other and , like a club , keep coming back together in different roles .
Indeed , the name Brandywine would mean nothing to most people , but mention it to a
The Nevada revenue numbers can only be described as a blowout . Statewide gaming revenues in February jumped 11.15 percent over last year . The Las Vegas Strip was especially strong , soaring 18.92 percent . Table drop was about even as a 20.11 percent rise in baccarat offset a 4.74 percent decline in domestic indicator blackjack . Slot drop , perhaps the best indicator of the health of the American gambler , rose a healthy 11.02 percent .
Delawarean and there is an immediate understanding of Brandywine Hundred , Brandywine Valley , Brandywine River and images of things Brandywine .
Later , Joe became CEO of William Hill US and currently heads IGT ’ s sports betting operations .
Now , he will play a role helping develop U . S . international policies .
In a sense , Joe ’ s appointment also is acknowledgement that gaming is now truly and fully mainstream . Not all that long ago , appointing a gaming entrepreneur and executive to such a role might have seemed incongruous . Not today . Way to go , Joe .
Frank Fantini is principal at Fantini Advisors , investors and consultants with a focus on gaming .
12 Global Gaming Business MAY 2023