Las Vegas Strip casinos face disturbing trend

The Consumer Confidence Index takes the pulse of the economy and can sometimes predict a recession.

The index has been volatile since September 2024, as attitudes toward current and future business conditions and the labor market deteriorated in January and December after favorable numbers in November and October, according to the Conference Board.

💸💰 Don’t miss the move: Subscribe to TheStreet’s free daily newsletter 💰💸

The Consumer Confidence Index is a monthly survey that measures consumer confidence in business conditions, the economy, and the labor market, conducted by tech firm Toluna for the Conference Board, a non-partisan, not-for-profit think tank.

Related: Las Vegas Strip casinos face alarming trend

Consumer confidence plummeted in January 2025 by 5.4 points to 104.1 after it had been adjusted upward by 4.8 points to 109.5 in December 2024, which was still 3.3 points lower than November’s index, according to the board’s Jan. 28 statement.

The Expectations Index, which is based on consumers’ short-term outlook for income, business, and labor market conditions, declined by 2.6 points to 83.9 in January 2025 after being adjusted upward from mid-month to the end of December from 81.1 to 86.5.

The January Expectations Index remains above the 80 threshold that usually signals a coming recession. The cutoff date for the month’s preliminary results was Jan. 20, 2025.

“Consumer confidence has been moving sideways in a relatively stable, narrow range since 2022. January was no exception,” Dana M. Peterson, chief economist at the Conference Board, said in the statement.

“The Index weakened for a second straight month, but still remained in that range, even if in the lower part,” Peterson said.

On a six-month moving average, consumer purchasing plans for homes, cars, and appliances were flat, and electronics were down

Consumers were still interested in dining out, but spending on vacations continued to trend downward, which is not good news for tourist locations, such as Las Vegas.

Las Vegas Strip win revenue dips for sixth straight month

Casino win revenue on the Las Vegas Strip in December 2024 declined for the sixth month in a row, by 2.66% year-over-year to $881.2 million.

Related: Legendary superstar singer returns to Las Vegas Strip residency

Gaming win revenue for the fiscal year from July 1 through Dec. 31, 2024, plummeted by 5.13% year-over-year to $4.44 billion, the Nevada Gaming Control Board said in its December revenue report released on Jan. 30.

More Las Vegas:

• Las Vegas Strip casino signs legendary singer for residency
• Las Vegas Strip casino signs superstar rocker for residency
• Las Vegas Strip casino closes iconic singer’s residency

The Las Vegas Strip casino doldrums did not reflect all of Nevada’s gaming win results, as revenue statewide in December 2024 increased by 2% year-over-year to $1.46 billion, compared to $1.43 billion in December 2023.

Gaming win revenue for the fiscal year July 1, 2024, through Dec. 31, 2024, however, declined by 1.98% to $7.84 billion compared to $8 billion in the same period in 2023.

Downtown Las Vegas win revenue increased in December

Downtown Las Vegas prospered in December 2024 as gaming win revenue increased by 8.38% to $82.2 million, compared to $75.9 million in December 2023.

Win revenue for Downtown also rose for the fiscal year July 1, 2024, through Dec. 31, 2024, by 3.73% year-over-year to $469.2 million.

Reno’s gaming win revenue had a huge increase in December 2024, rising 19.8% to $65.8 million, compared to $54.9 million in December 2023.

Win revenue in Reno for the fiscal year July 1, 2024, through Dec. 31, 2024, had a slight increase of 1.1% year-over-year to $392.5 million.

South Lake Tahoe also had a significant increase in gaming win revenue in December 2024, rising by 20.3% year-over-year to $19.3 million. The fiscal year of July 1, 2024, through Dec. 31, 2024, was a bit disappointing, declining by 1.37% year-over-year to $133.6 million.

The Nevada Gaming Control Board report did not draw any conclusions about the declines or increases in gaming win revenue.

Related: Veteran fund manager delivers alarming S&P 500 forecast

#Las #Vegas #Strip #casinos #face #disturbing #trend