Baccarat, penny slots overtake blackjack as games of choice on Strip
March 15th, 2011 at 1:35:26 PM
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Two extreme ends of the gambling spectrum — baccarat and penny slots — are helping Nevada survive the Great Recession.
Over the past decade, both games have rapidly overtaken more traditional or widely played casino games to become the state’s biggest moneymakers, hitting revenue records last year, according to the latest figures from the Gaming Control Board.
Nevada casinos generated nearly $2 billion in revenue from penny slots last year, a 21 percent increase from 2007, when the state’s gambling and tourism business peaked.
For the first time last year, baccarat generated more revenue statewide than blackjack, a game that is losing ground as the most widely played table game in Nevada casinos. There are 149 more baccarat tables than a decade ago, and 815 fewer blackjack tables.
Blackjack revenue is down 17 percent from a decade ago and has plummeted 31 percent from 2007. Anthony Curtis, publisher of Las Vegas Advisor, attributes much of the decline to the recession.
Gambling’s high end, represented by baccarat, has been least affected by the economy, Curtis said. Blackjack is a mass-market game played primarily by midrollers who can less afford to gamble, however, he said.
“This is why Vegas got hammered,” he said. “It needs the middle market.”
ASK NOT FOR WHOM THE BELL TOLLS, IT TOLLS FOR THEE
Over the past decade, both games have rapidly overtaken more traditional or widely played casino games to become the state’s biggest moneymakers, hitting revenue records last year, according to the latest figures from the Gaming Control Board.
Nevada casinos generated nearly $2 billion in revenue from penny slots last year, a 21 percent increase from 2007, when the state’s gambling and tourism business peaked.
For the first time last year, baccarat generated more revenue statewide than blackjack, a game that is losing ground as the most widely played table game in Nevada casinos. There are 149 more baccarat tables than a decade ago, and 815 fewer blackjack tables.
Blackjack revenue is down 17 percent from a decade ago and has plummeted 31 percent from 2007. Anthony Curtis, publisher of Las Vegas Advisor, attributes much of the decline to the recession.
Gambling’s high end, represented by baccarat, has been least affected by the economy, Curtis said. Blackjack is a mass-market game played primarily by midrollers who can less afford to gamble, however, he said.
“This is why Vegas got hammered,” he said. “It needs the middle market.”
ASK NOT FOR WHOM THE BELL TOLLS, IT TOLLS FOR THEE
March 15th, 2011 at 1:57:27 PM
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Quote: buzzpaffTwo extreme ends of the gambling spectrum — baccarat and penny slots — are helping Nevada survive the Great Recession.
“This is why Vegas got hammered,” he said. “It needs the middle market.”
I have been making this point for several years. See my quotes in the Vegas newspapers.
As an addendum both these markets are very vulnerable in Las Vegas. The penny slot conversion seems to have peaked. In addition penny slots are the most vulnerable to competition with local casinos in other states. No one is going to fly to Vegas just to play penny slots, if they can drive to a casino to play them all the time.
Baccarat is extremely vulnerable to wide swings. Last February 2010 baccarat made over $200 million in on month for Chinese New Year's and only four months later baccarat revenue was a mere $18 million for the month of June. I think that when February 2011 revenue is reported it will become obvious that Sands is entertaining most of it's big players in Singapore instead of Vegas where it is easier to fly Chinese players and has a lower tax rate than Macau. By mid 2011 I think that baccarat will return to it's pre-recession levels.
Also baccarat is not going to create a lot of employment. You need a smaller number of people to provide high end service to a smaller number of gamblers. The "casino departments" of Clark County employment levels are now about the same as they were in mid 1990 just as the Mirage opened. Surprisingly employment by the food, beverage, and rooms departments has only increased by about 50% (compared to a 200% increase in the county population).
