LV Strip (Nevada gaming area)

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The LV Strip is one of the designated Nevada Gaming Control Boards reporting areas. It consists of the Las Vegas Strip casinos and many of the surrounding casinos.[1] The Strip earns roughly 50% of the gaming revenue from all sources for the state of Nevada.

For the previous 12 months ending 31 August 2009, the Las Vegas Strip earns 83.6% of the pit revenue in Clark County, and 50.6% of the gaming revenue from other sources (slot machines, sports bet, parimutuel, etc.).

Penny slot machines is the only categories of gaming devices where revenue is increasing. After decades of being the top earning game in the pit, blackjack has been surpassed by baccarat for the previous 12 months ending 31 August 2009. In August 2009, the game of baccarat was responsible for over 50% of the pit gaming revenue for the Strip which surpassed the game's contribution in the month of February during Chinese New Year.

Since the year 1999, non-gaming revenue at the Strip casinos exceeds gaming revenue. In more traditional gaming areas like Downtown Las Vegas or Laughlin gaming is still the primary revenue source.

Gaming revenue of Strip casinos[edit]

Financial information is provided to show where the source of gaming revenue comes from (slots revenue, vs. pit revenue, etc.). Current data it is contrasted for the year ending Oct 2007 when revenue peaked.[2][3] The other-pit category is all the other table games like Bingo, Keno, Let it Ride, Mini-Baccarat, Pai-Gow, Pai-Gow Poker, 3-Card Poker, Caribbean Stud, Sports Book, Racing Book, and so forth.

Gaming Revenue in USD Thousands For Year Ending:
Source 30 Nov 2009 31 Oct 2007
Twenty-One $741,594 $1,078,626
Baccarat $891,597 $970,726
Craps $251,635 $318,855
Roulette $260,515 $303,385
Other-PIT $475,885 $663,137
Poker $85,596 $97,114
Slots $2,815,438 $3,513,608
Total $5,522,260 $6,945,451

The year ending August 2009 is the first year that Baccarat has had higher revenue than Twenty One (or Blackjack). Although Baccarat is played in other areas of Nevada besides the Strip, 99.2% of the Baccarat revenue in the state is from the Strip.

List of Strip casino hotels for fiscal year 2009[edit]

The Gaming Abstract contains the following notice: No other informational breakdown is available than that presented in this report. Names of casinos in the various groupings, other than those shown for publicly owned casinos, are not available to users of this report. Aria Casino had not yet opened in FY09.

Las Vegas Strip Casinos with Gaming Revenue over $72 million per year
INDEPENDENT MGM Mirage Harrah's Entertainment
Wynn Resorts Bellagio (hotel and casino) Caesars Palace
The Venetian MGM Grand Las Vegas Harrah's Las Vegas
Palace Station Mandalay Bay Resort and Casino Flamingo Las Vegas
Palms Casino Resort Luxor Las Vegas Rio All Suite Hotel and Casino
Las Vegas Hilton Excalibur Hotel and Casino Imperial Palace Hotel and Casino
New York-New York Hotel & Casino Treasure Island Hotel and Casino Bally's Las Vegas
Gold Coast Hotel and Casino Monte Carlo Resort and Casino Paris
The Mirage Planet Hollywood Resort and Casino
  • Palazzo operated under the same license as the Venetian for this year.
Las Vegas Strip Casinos with Gaming Revenue under $72 million per year
$36–$72 $12–$36 $1–$12
Tropicana Hooters Ellis Island
Riviera Airport Slot Concession Wild Wild West
Sahara Casino Royale Casuarina
Hard Rock Slots-A-Fun
Tuscany
Bill's Gamblin' Hall
Terrible's
Circus Circus Las Vegas
  • The Nevada Gaming Commission's definition of the LV Strip reporting area includes casinos surrounding the Strip.
Clark County Casinos with Rooms (over $1m) for fiscal year 2008
Category Per Room Revenue Rooms Rented Occup
Strip > $72m $156.41 $3,797,326,096 25,529,460 24,277,794 95.1%
Strip < $72m $89.78 $272,680,274 3,493,628 3,037,058 86.9%
Rest of County $61.47 $618,206,516 12,672,369 10,056,881 79.4%
  • The gaming abstract as published only says there are 38 casinos that are in the Gaming Commission's definition of the Strip, the individual names of those casinos are not published since it is not permitted under state law.
  • At least 9 of the 23 casinos currently on the over $72 million list existed before 1989. Some of the older casinos, like the Tropicana in previous years may have earned more than $72 million a year in gaming revenue, but have since dropped below that amount. The gaming commission does not adjust the $72 million from year to year.
  • Outside of the Strip there are 22 licenses in the rest of the state of Nevada that earn more than $72 million per year apiece in gaming revenue. The casinos locations are: 1 in Lake Tahoe, 5 in Reno, 3 in Laughlin and 13 in other parts of the Las Vegas urban area such as downtown Las Vegas, Summerlin, North Las Vegas, Henderson and Paradise.

North Strip[edit]

The North Strip is the unofficial name of the first mile of Las Vegas Blvd. just outside of the Last Vegas City Limits, corresponding to Winchester, Nevada. This section of the Strip currently includes five budget resorts, like the Sahara Hotel, Circus Circus Las Vegas, Slots-A-Fun Casino, the Riviera Hotel and Casino and the Greek Isles Hotel and Casino. Collectively they have less than 200 table games, 4200 slots, 31 poker tables and less than 8000 hotel rooms. Also numerous time shares have been built in this region.

The North Strip was planned to be rebuilt as an upscale gambling district comparable to center Strip. Billions of dollars were invested in land speculation. The former Stardust Resort & Casino and New Frontier Hotel and Casino were imploded in anticipation of new development.

Many new resorts Las Vegas Plaza, Crown Las Vegas, Echelon Place, an unnamed joint MGM & Kerzner project,[4] and the Fontainebleau Resort Las Vegas planned for development, but all these projects are in various stages of bankruptcy or incomplete status. In addition a major redevelopment and expansion of the Sahara Hotel and Casino and the Stratosphere Las Vegas were put on hold.[citation needed]

The Triple Five Group was in the process of trying to assemble 27.3 acres (110,000 m2) of North Strip land just south of the Riviera Casino. By April 2008, they had acquired 13.7 acres (55,000 m2) at a cost of $380 million. They applied to the FAA for height clearance for eight 572' towers.

Another project announced was the construction of a Marriott Marquis on land currently occupied by a Residence Inn and a Courtyard Inn belonging to Marriott corporation.

The Fontainebleau Resort Las Vegas was the most visible failure as it topped out the tallest building in Las Vegas before going bankrupt. Initial offers for selling the uncompleted tower are far less than the raw land value from two years ago. The Echelon also got as far as erecting steel girders up as high as the eighth floor for several buildings. The owners, Boyd Gaming sold the property to the Malaysian company Genting. They plan on opening Resorts World Hotel and Casino in 2016. The style will be Chinese themed.

Casino revenue in fiction[edit]

In the movie Ocean's Thirteen the lead character, Danny Ocean, is describing the new ultra luxurious fictional casino opening on the Strip. He states that the big casinos on the Strip take in $3m a day just from the [casino] floor, and this new resort is aiming for $5m. In reality the two largest corporate operations in Las Vegas, MGM Mirage and Harrah's Entertainment for the first quarter of 2009 brought in $5.9m and $4.1m per day in gaming revenue alone respectively from their combined Las Vegas Strip resorts. MGM Mirage currently owns 9 Strip resorts, and Harrah's owns 8 Strip resorts (although one is a minor property originally intended to be a tear-down). No single casino operation has ever brought in close to $3m a day from the casino floor alone, and the NVGC uses the qualification of greater than $200K per day ($72m /year) as a grouping for reporting purposes.

Distribution of total revenue of Strip casinos high to low[edit]

The Nevada Gaming Commission (NGC) publishes annual information about total revenue including gaming, hotel rooms, food & beverage, and attractions. If the casinos are numbered with #1 being the highest grossing casino then the following show the total revenue, for the period 1 July 2008 through 30 June 2009.

TOTAL REVENUE (GAMING + etc.)

  • $759,063,730 is revenue for casino #6
  • $571,415,161 is average of casino #10 and #11
  • $390,381,914 is revenue for casino #12
  • $266,022,372 is revenue for casino #18
  • $246,291,317 is average of casinos #20 and #21

The NGC does not publish data for individual casinos. But based on the size, age, and relative luxury of the casinos an analyst can guess the top six.

  • Venetian & Palazzo operated under one license
  • Wynn Casino (Encore had not opened yet)
  • Caesars Palace
  • Bellagio
  • MGM Grand Hotel
  • Mandalay Bay & THE Hotel operated under one license

Harrah's Entertainment Corporation only reports aggregate numbers for regions, but their flagship property, Caesar's Palace, is clearly the biggest moneymaker in their portfolio. Harrah's earns 54% of their revenue from the casinos, unlike MGM-Mirage which earns 38% of their revenue (before promotional allowances) from the casino floor.

Harrah's & MGM Yearly Earnings from Las Vegas Properties
Company 2009 2008 2007 2006
Harrah's $2,698.00 $3,254.30 $3,626.70 $3,267.20
MGM $4,656.87 $5,889.08 $6,473.79 $6,227.77

Both companies are experiencing 20% drops for Calendar Year 2009 vs 2008. MGM-MIRAGE sold their Strip casino Treasure Island in 2009. The revenue from TI for a portion of 2009 is not included in the total. Revenue reported by MGM-Mirage for the year ending 31 December 2004 for top Las Vegas casinos owned at this time. Mandalay Bay, Luxor, Excalibur, Circus Circus, and Monte Carlo were acquired at a later date.

MGM Casino # Revenue from 2009 Revenue from 2004
Bellagio 1 $1,064,729 $1,068,517
MGM Grand LV 2 $976,261 $860,778
Mandalay Bay 3 $725,129
The Mirage 4 $624,132 $566,276
Luxor 5 $344,722
Excalibur 6 $265,076
New York-New York 7 $250,055 $337,198
Monte Carlo 8 $206,377
Circus Circus 9 $200,385
Total $4,656,866

Change in revenue[edit]

The revenue for the Strip is contrasted with that of the state of Nevada. Gaming Revenue went flat for 3.5 years from July 2000 through January 2004, partly because of the downturn after 9/11. For the four years from January 2004 to January 2008 gaming revenue increased by a third. During this time, the only new casino to open on the Strip was Wynn Resort, and a new hotel tower opened on Mandalay Bay. Several dozen new casinos were planned. Finally, when the Palazzo casino opened in January 2008, gaming revenue was starting to fall. The Palazzo was followed by Palms Place, Trump Tower, Wynn Encore, The Cannery, The M Resort, and the yet to open MGM City Center and Fountainbleau. Also numerous new condominiums, and hotel towers were added to existing casinos.

Multi Year Stats for Total Revenue
Data through 30 July 2009
Strip gaming.png

In fiscal year 1990 (1 July 1989- 30 June 1990), the Commission reported a total of 13 casinos on the Strip that earned more than $72 million per year in gaming revenue. The first modern mega-resort, The Mirage, opened about halfway through this fiscal year and the Rio All Suite Hotel and Casino opened 8 weeks later. Presumably some of the casinos in this category have since been imploded in favor of newer resorts. At that time the average gaming revenue was $129.2 million per year and non-gaming revenue was $97.8 million (for an average of $227 million total revenue). Non-Gaming revenue has since surpassed gaming revenue for the Las Vegas Strip.

In 2008 Cash sales of Food and Beverage come fairly close to covering the raw cost of sales, and the departmental expenses. In 1990 both food and beverage were sold at a loss. Complimentary food and beverage is shown as well (everything relative to the raw cost of sales).

In 1990 Room Sales only slightly exceeded departmental expenses and complimentary rooms. In 2008 room sales far exceed expenses and comps. Amounts are shown in millions of dollars. The statistics are contrasted with those of Downtown Las Vegas where cash sales are still not much higher than the departmental expenses plus the cost of the comped rooms.

Hotel / casino development construction bulletin[edit]

The Las Vegas Convention Center website posts a monthly update to the planned construction for the Las Vegas metropolitan area for the future.[5] In the four years between 2003 and 2007 there was a cumulative addition of 1,444 rooms to Las Vegas. The major openings were Wynn Las Vegas and THE Hotel at Mandalay Bay, which were offset by the implosion of several resorts like New Frontier, The Stardust, Bourbon Street, and Castaways. During the same four years visitor volume increased by 3.66 million or 10.3% and gaming revenue in Clark county increased by $3 billion or 38.8%. On many weekends there was insufficient room supply to meet demand. However, once the new rooms opened the recession hit.

Las Vegas Construction for 2008–2012
Name of Property Location Completion Cost
(Millions)
Convention
(Sq Ft)
Timeshares Rooms
TOTAL 2008: $6,642 209,644 1,268 8,661
TOTAL 2009: $11,606 557,622 1,121 8,627
TOTAL 2010: $3,925 226,000 400 3,993
TOTAL 2011: 107
TOTAL 2012: 97
Las Vegas Construction for 2008 and 2009
Name of Property Location Completion Cost
(Millions)
Convention
(Sq Ft)
Timeshares Rooms
The Palazzo Resort
Hotel Casino
3339 Las Vegas Blvd S 17-Jan-08 $1,900 3,066
MGM Grand Hotel &
Casino expansion
3799 Las Vegas Blvd South 25-Jan-08 92,000
Marriott's Grand Chateau
phase 2
75 E Harmon Ave 29-Feb-08 200
Nevada Palace closure 5255 Boulder Highway 29-Feb-08 -104
Odgen House
closed for redeveloping
651 Ogden Ave 29-Feb-08 -101
Trump International Hotel
and Tower Las Vegas
2000 Fashion Show Dr 31-Mar-08 $600 2,460 1,282
Palms Place 4321 West Flamingo 31-Mar-08 $650 2,500 400
MonteLago Village
Resort expansion
30 Strada Di Villaggio 10-Apr-08 3,829
Homewood Suites by Hilton 230 Hidden Well Rd 8-May-08 1,500 147
World Mark III, The Club 5275 W. Tropicana Ave. 15-May-08 208
Microtel Inn & Suites
phase 2
55 E. Robindale Rd. 13-Jun-08 1,000 35
South Point Hotel
expansion
9777 S. Las Vegas Blvd 28-Jul-08 $95 10,000 807
Tahiti Village
Vacation Club phase 2
7200 Las Vegas Blvd South 15-Aug-08 $135 510 --
Staybridge Suites 5735 Dean Martin Drive 27-Aug-08 118
Eastside Cannery
(Site of Nevada Palace)
5255 Boulder Hwy 28-Aug-08 $250 20,000 307
Bluegreen Club #36 372 E. Tropicana 28-Aug-08 350 120
Aliante Station Casino and Hotel 215 & Aliante Pkwy 11-Nov-08 $662 14,000 202
Hampton Inn Las Vegas North Speedway 2852 E. Craig Rd. 15-Dec-08 650 96
element Las Vegas Summerlin 10555 Discovery Drive 18-Dec-08 $25 441 123
Hampton Inn & Suites
Las Vegas Airport
6575 S. Eastern Ave. 18-Dec-08 $25 1,264 129
Encore Las Vegas 3131 Las Vegas Blvd S 22-Dec-08 $2,300 60,000 2,034
TOTAL 2008: $6,642 209,644 1,268 8,661
Comfort Inn & Suites 475 Marks St. 1-Jan-09 127
M Resort, Spa, and Casino 12300 Las Vegas Blvd South 1-Mar-09 $1,000 60,000 390
Cabana Suites
(formerly Odgen House)
651 Ogden Ave 4-May-09 $6 64
The Grandview at Las Vegas
tower 4
9940 Las Vegas Blvd S 17-May-09 400
Marriott TownePlace Suites 1471 Paseo Verde 17-Jun-09 112
Caesars Palace expansion 3570 Las Vegas Blvd S 13-Jul-09 110,000
Hard Rock Hotel
expansion and redevelopment
4455 Paradise Road 31-Jul-09 $750 60,000 490
Marriott Spring Hill Suites
Henderson/Green Valley
1481 Paseo Verde 1-Sep-09 120
Marvin Garden closure 5125 S. Swenson Rd. 30-Sep-09 -250
Airport Inn & Suites closure 5100 Paradise Rd. 30-Sep-09 -100
Marriott Spring Hill Suites
Las Vegas Convention Center
2989 Paradise Rd 14-Oct-09 4,522 299
Golden Nugget expansion 129 E. Fremont St 20-Nov-09 $150 500
CityCenter (MGM Mirage) 67 acres (270,000 m2) on west side of LVB $8,500
Vdara Hotel & Spa 2600 W. Harmon Ave 1-Dec-09 10,000 1,495
Mandarin Oriental 3752 Las Vegas Blvd 4-Dec-09 12,000 392
ARIA Resort & Casino 3730 Las Vegas Blvd 16-Dec-09 300,000 4,004
Planet Hollywood
Towers by Westgate
3667 Las Vegas Blvd South 28-Dec-09 $1,200 721 480
Holiday Inn Las Vegas 4055 Palos Verdes St. 28-Dec-09 1,100 129
Hard Rock Hotel
expansion and redevelopment
4455 Paradise Road 28-Dec-09 375
TOTAL 2009: $11,606 557,622 1,121 8,627

Since so much was constructed in 2008 and 2009 there is very little planned for the near future.

Las Vegas Planned Construction as of 4 November 2009
Name of Property Location Completion Cost
(Millions)
Convention
(Sq Ft)
Timeshares Rooms
Planet Hollywood Towers by Westgate 3667 Las Vegas Blvd South Q1 2010 35,000 0
La Quinta Inn & Suites Las Vegas Airport South 6560 Surrey May-10 4,000 140
Marriott SpringHill Suites Craig& Frehner Jun-10 96
Wingate by Wyndham 315 W. Warm Springs Mid 2010 209
The Grandview at Las Vegas tower 6 9940 Las Vegas Blvd S Jul-10 400
Hampton Inn & Suites SE corner of Sunset Rd. & Grier Dr. Fall 2010 $25 2,500 150
The Cosmopolitan Resort & Casino 3708 Las Vegas Blvd S Late 2010 $3,900 167,000 2,998
The Harmon Hotel & Spa (CityCenter) Within CityCenter development Late 2010 17,500 400
TOTAL 2010: $3,925 226,000 400 3,993
Marriott Courtyard Tropicana & 215 Sep-11 107
TOTAL 2011: 107
Marriott SpringHill Suites Tropicana & 215 Nov-12 97
TOTAL 2012: 97

Because the timeline is unknown the report omits the Fontainebleau Resort Las Vegas which is already topped out, but is currently in bankruptcy. Also the Echelon Place which is built as far as steel framing, but is on indefinite hold.

References[edit]