Nevada Gambling Revenues Continue Decline (MGM, LVS, WYNN, CZR)

In its latest report on gambling revenues in the state, the Nevada Gaming Commission said that total revenue for June 2012 came in at $832.5 million, down -6% compared with June 2011. For the fiscal year ending in June, state-wide revenues were up 0.66%. The Las Vegas Strip accounted for more than half of the state’s revenue, with a June total of $483.7 million, down -4.5% from June 2011. Revenues from The Strip were up just 0.6% this year.

Here are a few interesting numbers for the Nevada report:

• Total slot machine revenue from The Strip represented about 44% of the state’s win at Strip casinos.
• Penny slots provide more than 3x the revenue of dollar machines at Strip casinos.
• Slot machines provided about 63% of statewide revenue in the fiscal year.
• Bingo revenue grew by nearly 32% statewide in the fiscal year.

The consensus current quarter EPS estimate for MGM Resorts International (NYSE: MGM) calls for a loss of -$0.16 on revenue that is essentially flat with the same period a year ago. At Ceasars Entertainment Corp. (NASDAQ: CZR) an expected second-quarter EPS loss of -$0.94 at Ceasars came in at -$1.93 on Monday. Wynn Resorts Ltd. (NASDAQ: WYNN) missed second-quarter EPS by -$0.11 and the consensus estimate for the current quarter has been reduced by $0.17 in the past three months. Las Vegas Sands Corp. (NYSE: LVS) also fell short of a consensus EPS estimate of $0.62 in the second quarter.

MGM shares are down -1.6% at $9.66 in a 52-week range of $7.40-$14.94. Wynn shares are off -0.9% at $101.77 in a 52-week range of $90.11-$161.33. Las Vegas Sands’ shares are off -0.4% at $39.85 in a 52-week range of $34.72-$62.09.

Ceasars stock is up more than 2% at $8.18 in a 52-week range of 7.98-$17.90, for reasons impossible to fathom.

The Gaming Control Board’s full report is available here.

Paul Ausick