Boulder strip (biggest money losing district in the state)
February 22nd, 2010 at 8:18:23 PM
permalink
Casino profits plunge in fiscal year 2009 by $6.8 billion .
BOULDER STRIP is the name given by the Gaming Commission to casinos in Henderson and on the Boulder Highway from Last Vegas to Boulder city. This district had two new casinos this year, Eastside Cannery, and M Resort (which is actually inside the Henderson City limits).
Because of the new casinos this district only lost 3.5% in total revenue. The increase in food and beverage revenue was higher than the loss in hotel revenue.
Despite having revenue drop by one of the lowest amount in the state, write offs of property value meant that the Boulder strip lost the biggest percentage (-68.4% of $1.204 billion) In comparison the South Shore Lake Tahoe had a huge drop in revenue (17.5%) which was about the worst in the state. The culprit besides the recession was competition with Sacramento Indian casinos. It is so bad, that they may close two of the five casinos. Yet SS Lake Tahoe reported losses of 60%.
So even if you retain revenue you can still lose big money.
BOULDER STRIP is the name given by the Gaming Commission to casinos in Henderson and on the Boulder Highway from Last Vegas to Boulder city. This district had two new casinos this year, Eastside Cannery, and M Resort (which is actually inside the Henderson City limits).
Because of the new casinos this district only lost 3.5% in total revenue. The increase in food and beverage revenue was higher than the loss in hotel revenue.
Despite having revenue drop by one of the lowest amount in the state, write offs of property value meant that the Boulder strip lost the biggest percentage (-68.4% of $1.204 billion) In comparison the South Shore Lake Tahoe had a huge drop in revenue (17.5%) which was about the worst in the state. The culprit besides the recession was competition with Sacramento Indian casinos. It is so bad, that they may close two of the five casinos. Yet SS Lake Tahoe reported losses of 60%.
So even if you retain revenue you can still lose big money.
| 1 | ARIZONA CHARLIE'S BOULDER | medium |
| 2 | BOULDER STATION HOTEL & CASINO | large |
| 3 | CASINO MONTELAGO | medium |
| 4 | CLUB FORTUNE CASINO | medium |
| 5 | EASTSIDE CANNERY CASINO & HOTEL | large new |
|---|---|---|
| 6 | ELDORADO CASINO | medium |
| 7 | FIESTA HENDERSON CASINO HOTEL | medium |
| 8 | GREEN VALLEY RANCH STATION CASINO | large |
| 9 | HACIENDA HOTEL & CASINO | small |
| 10 | JOKERS WILD | small |
| 11 | KLONDIKE SUNSET CASINO | small |
| 12 | LONGHORN CASINO | small |
| 13 | M RESORT SPA AND CASINO, THE | large new |
| 14 | RAILROAD PASS CASINO | small |
| 15 | SAM'S TOWN HOTEL & GAMBLING HALL | large |
| 16 | SKYLINE CASINO | small |
| 17 | SUNSET STATION HOTEL & CASINO | large |
| 18 | 19TH HOLE | slots |
| 19 | ALBERTSON'S #6046 | slots |
| 20 | BARLEY'S CASINO & BREWING COMPANY | slots/race |
| 21 | DRAFT HOUSE BARN & CASINO | slots |
| 22 | EMERALD ISLAND CASINO | slots |
| 23 | GOLD RUSH CASINO | slots/race |
| 24 | LAKE MEAD LOUNGE | slots |
| 25 | MARDI GRAS INN | slots |
| 26 | MYSTIC LODGE CASINO | slots |
| 27 | OASIS RESORT CASINO GOLF & SPA | slots |
| 28 | RAINBOW CLUB AND CASINO | slots |
| 29 | TERRIBLE'S TOWN CASINO | slots |
| 30 | VILLAGE PUB AND CASINO - GREEN VALLEY | slots |
| 31 | WILDFIRE CASINO - BOULDER | slots/race |
| 32 | WILDFIRE CASINO AND LANES | slots/race |
February 23rd, 2010 at 12:33:33 AM
permalink
I'm confused.
We know casinos generally had to lower room rates and lower buffet rates in order to attract visitors and that visitors didn't necessarily spend all that much at the tables, but where did these losses come from? What exactly was written off?
M is very new. I'm surprised its categorized under Boulder Strip but so be it.
I'm puzzled by the economics of the various NCCs: Non-Casino Casinos. That is, licensed slot parlors that seem to exist as slot parlors or as bars/restaurants. There has been some discussion on this forum about Arizona Charlies Decatur which is basically a slot parlor for retirees but has minimal table games and therefore is a real casino.
There are also these slots only places and some slots/bars places.
I wonder what these places do in recessions? Slots only places seem to have large comfortable chairs and can't really do much in a recession since they have no hotel, no buffet. I've always assumed these places were locals only and regulars only and basically drew from the immediate neighborhood only. I've no real idea if my assumptions are valid.
I don't know if these Beer and Burger joints that feature slot machines make their money on the beer, the burgers or the slots. Are these places simply watering holes for locals seeking relief from the throngs at casinos? How does a Beer 'n Burger joint compete with a "real" casino that also offers beer and burgers? Location? Ease of entry and parking? Faster service? Better beer?
Why would a yuppie living in Vegas go to a Beer and Burger joint instead of a Locals Casino?
We know casinos generally had to lower room rates and lower buffet rates in order to attract visitors and that visitors didn't necessarily spend all that much at the tables, but where did these losses come from? What exactly was written off?
M is very new. I'm surprised its categorized under Boulder Strip but so be it.
I'm puzzled by the economics of the various NCCs: Non-Casino Casinos. That is, licensed slot parlors that seem to exist as slot parlors or as bars/restaurants. There has been some discussion on this forum about Arizona Charlies Decatur which is basically a slot parlor for retirees but has minimal table games and therefore is a real casino.
There are also these slots only places and some slots/bars places.
I wonder what these places do in recessions? Slots only places seem to have large comfortable chairs and can't really do much in a recession since they have no hotel, no buffet. I've always assumed these places were locals only and regulars only and basically drew from the immediate neighborhood only. I've no real idea if my assumptions are valid.
I don't know if these Beer and Burger joints that feature slot machines make their money on the beer, the burgers or the slots. Are these places simply watering holes for locals seeking relief from the throngs at casinos? How does a Beer 'n Burger joint compete with a "real" casino that also offers beer and burgers? Location? Ease of entry and parking? Faster service? Better beer?
Why would a yuppie living in Vegas go to a Beer and Burger joint instead of a Locals Casino?
February 23rd, 2010 at 3:08:32 PM
permalink
Quote: FleaStiffI'm confused.
We know casinos generally had to lower room rates and lower buffet rates in order to attract visitors and that visitors didn't necessarily spend all that much at the tables, but where did these losses come from? What exactly was written off?
M is very new. I'm surprised its categorized under Boulder Strip but so be it.
I'm puzzled by the economics of the various NCCs: Non-Casino Casinos. That is, licensed slot parlors that seem to exist as slot parlors or as bars/restaurants. There has been some discussion on this forum about Arizona Charlies Decatur which is basically a slot parlor for retirees but has minimal table games and therefore is a real casino.
There are also these slots only places and some slots/bars places.
I wonder what these places do in recessions? Slots only places seem to have large comfortable chairs and can't really do much in a recession since they have no hotel, no buffet. I've always assumed these places were locals only and regulars only and basically drew from the immediate neighborhood only. I've no real idea if my assumptions are valid.
I don't know if these Beer and Burger joints that feature slot machines make their money on the beer, the burgers or the slots. Are these places simply watering holes for locals seeking relief from the throngs at casinos? How does a Beer 'n Burger joint compete with a "real" casino that also offers beer and burgers? Location? Ease of entry and parking? Faster service? Better beer?
Why would a yuppie living in Vegas go to a Beer and Burger joint instead of a Locals Casino?
STATEWIDE COMMENT
Last year net income before federal taxes was reported at +2.9% for the entire state ($721 million). In a year total revenue dropped by $3 billion (from $25 billion to $22 billion). I was expecting to see some small percentage of $3 billion as the net loss in revenue. Instead net revenue loss was a whopping $6.8 billion. The 200 page report does not offer much help as billions of dollars in expenses are in the other expenses.Gaming Control Board Tax and License Division Chief Frank Streshley said that casino companies took more than $5 billion in non-cash write downs or impairment charges on their operations.
BOULDER STRIP COMMENTS
M resort is actually inside the City of Henderson which has a winding boundary. It's a little confusing because NGCB doesn't actually release a list of the casinos in a region. I calculated which casinos were on their list.
The NGCB has a restricted license which is good for up to 15 slot machines and no table games or sports book. There are over 2000 of these licenses given in Clark County alone. The above list is all unrestricted licenses. If you go into a bar you will often count exactly 15 bar top gaming machines.
Some of the Non Casino Casinos, have un-restricted licenses, but are still pretty small places.
The Albertson's grocery store has 20 slot machine.
The 19th Hole has 50 slot machines.
The Lake Mead Lounge has 75 slot machines.
Barley's Casino and Brewing Company has 199 slot machines and sport's book.
The Railroad Pass hotel has 340 slots, 5 table games, and a poker table, and is one of the original licenses granted in 1931.
The only requirement is that they have an un-restricted license and they make more than $1 million in gaming revenue alone for the year to be included in the Abstract.
The region spanned by the casinos above include some very blue collar places like Boulder Station. They move up to middle class places that someone doing business in Henderson might stay, like Sunset Station. They climb to some of the priciest n'hoods in the metro area where you have casinos like Green Valley Ranch and the M Resort. Casino Montelago is a tiny casino in the upscale Lake Las Vegas Resort with 415 slot machines and a smallish pit with 12 tables. Since the Ritz Carlton is closing, they have decided to close the casino as well.
At the beginning of the fiscal year there there were roughly 3700 rooms on the Boulder strip in the casinos. Eastside Cannery opened three months into the fiscal year and added 300 rooms. The M Resort opened 9 months into the fiscal year and added another 400 rooms (but much higher quality). The Boulder Strip rooms went for $80/day on average with 80% occupancy. Last year they went for $88/day on average with 85% occupancy.
The total revenue for BS dropped from $1.25 billion in FY08 to only $1.20 billion in FY09.
I was shocked by the $823 million (68.4% loss for the year).
These casino's earned more than $72 million for the fiscal year (in gaming alone).
| 2 | BOULDER STATION HOTEL & CASINO | large |
| 8 | GREEN VALLEY RANCH STATION CASINO | large |
| 15 | SAM'S TOWN HOTEL & GAMBLING HALL | large |
| 17 | SUNSET STATION HOTEL & CASINO | large |
Boulder strip earns 86.5% of its revenue from slot machines, while Downtown earns 74.9% from slot machines. The strip earns 55.0% from slot machines.
