The Nevada Gaming Control Board is responsible for reporting the monthly gambling revenue for places like Las Vegas – something that many investors use as an indicator to track the overall environment of the country’s economy. The basic concept is, the more people can afford to gamble in sin city, the more they usually have to spend in other areas of the economy – like real estate, cars and consumer electronics.
Case in point, following the economic crisis of 2008, Nevada took a major hit in pretty much every metric that matters to the tourism dependent state. But since then, the state has been battling back, and if January’s gambling revenue numbers are any indication, it seems the economic recovery that everyone is hoping for may be well under way.
When it comes to monitoring investments, people often compare a business’s current performance against its numbers from the year prior in an attempt to gauge what direction things are headed in. For January, The Nevada Gaming Control Board reported a 29 percent increase from last year for gambling revenues generated on the Las Vegas strip. This amounted to $623.5 million in gambling revenue for that one month.
Clark County, which includes the Las Vegas strip as well as places like Laughlin and Mesquite, saw a nearly 22 percent increase in total revenue. That was good for $925.5 million.
Beyond a strengthening economy, many have attributed the Chinese New Year for the increase in gambling revenue enjoyed by Las Vegas casinos. Evidence of this was indicated by the significant rise in baccarat numbers that came in for January.
Another contributing factor for the month’s positive numbers were the various conventions and trade shows that took place, including the Consumer Electronics Show and the World of Concrete convention. Similar to gambling numbers, convention and trade show numbers also indicate the possibility of a strengthening economy since turnout for these kinds of events usually goes down during recessions.