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June Gaming Revenue in Nevada Drops 3.5%; Nevada Blames High Gas Prices

The Gaming Control Board, Nevada's casino regulator, has reported on Thursday a 3.5% decrease in the state's gambling revenues for the month of June blaming reduced tourism for the decrease.

From almost a billion dollar gaming revenue ($954.2M) in June last year, Nevada's gaming win for June this year plunges to $921.1 million, a slight decrease of 4 percent.

The state board said that the drop was caused largely by the weakening tourism in Nevada as a result of the increase in gasoline prices and also the economic downturn in the United States.

Senior Analyst Frank Streshley said, "With the economy slowing and gasoling staying around the $3 (a gallon) mark, we assume there is going to be a softening for the lower-end market."

Hotel and casino operations in Nevada have been experiencing business growth in the last three years since the economic crisis brought by the 9/11 tragedy, but this time around, Nevada's gaming industry has experienced a minimal but alarming drop-off in June revenue.

Nevada State Governor Kenny Guinn said that the slim decline is a cue that a tourism-driven economy is always at the mercy of increasing cost of gasoline and even slowing of the economy.

He added that Nevada should always be watchful and keen to factors that affect tourism.

Nevada's ultimate pride The Las Vegas Strip reported a 7.1% drop to $454.8M gaming revenue while Casinos in Reno in the north had an increase of 1.9% to $63.8M in June from the same month last year.