Nevada’s State Gaming Control Board recently released gaming revenues for the month of January 2015 for Nevada and Las Vegas. Revenues increased by 7.75% to $953 million year-on-year. For the fiscal year to date from July 1, 2014, through January 31, 2015, gaming win decreased by 2.1%.
The Las Vegas Strip, which generates more than 50% of Nevada’s gaming revenues, soared above 15% year-on-year to $577 million for the month of January. This is due mainly to an improvement in Baccarat gambling activity.
An improvement in the US economy could have also driven gambling activity at the Strip. US consumer sentiment hit an 11-year high, unemployment rates dropped, inflation fell, and gasoline prices plummeted. We’ll look at all these factors in later parts of this series.
A good way to get access to these casino companies is to invest in the VanEck Vectors Gaming ETF (BJK). BJK has the highest exposure of 8.6% in LVS. ETFs such as the Consumer Discretionary Select Sector SPDR Fund (XLY) help investors have a broader exposure to the leisure industry.
Nevada collected ~$68.4 million in percentage fees during the month of February 2015, based on taxable revenues generated in January 2015. This represents a 1.68% decrease compared to February 2014 when percentage fee collections were $69.6 million.