Consumer attitudes toward spending have been volatile since the summer months, and that appears to be taking a toll on Las Vegas Strip casinos.
Confidence deteriorated last month, according to the Conference Board's Consumer Confidence Index, as the index declined by over 6 points, from 105.6 in August to 99.2 in September.
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Consumer confidence had increased in both July and August and consumers had been less pessimistic about the future, according to the board.
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After confidence plummeted in September, it rebounded in October as the index rose by 9.5 points from 99.2 to 108.7.
The volatility may signal consumer uncertainty, making them less willing to travel and bet money in Las Vegas Strip casinos.
Consumer sentiment swings wildly in September and October
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.
“Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years,” Dana M. Peterson, chief economist at The Conference Board said in a statement regarding the October survey.
Views on the current availability of jobs rebounded after several months of weakness, consumers were substantially more optimistic about future business conditions and remained positive about future income, Peterson said. Also, for the first time since July 2023, consumers showed some cautious optimism about future job availability.
The October consumer confidence stats could be good news for future Las Vegas Strip gaming revenue, but the September stats might have had a different effect.
September's consumer confidence decline was the largest since August 2021. Consumers' assessments of current business conditions turned negative while views of the current labor market situation softened further.
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Consumers were also more pessimistic about future labor market conditions and less positive about future business conditions and future income, according to the September report.
In July, the survey said that consumers planned to spend less over the next six months on many discretionary items, including gambling, amusement parks, and personal travel.
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Those consumer attitudes may have carried over through September and affected gaming revenue on the Las Vegas Strip.
Image source: John Greim/LightRocket via Getty Images
Las Vegas Strip casino gaming revenue declines
Casino win revenue on the Strip in September 2024 fell by 1.83% year-over-year to $727.6 million, while the three-month win revenue from July through September plummeted by 7.23% to $2.08 billion year-over-year, the Nevada Gaming Control Board reported in its monthly revenue report released Oct. 29.
The September decline was the third month in a row that win revenue fell year-over-year at casinos on the Strip.
Win revenue in August 2024 plummeted by 3.46% year-over-year to $643.6 million, while the three-month win revenue from June 1 to Aug. 31 fell by 5.27% to $2.1 billion year-over-year.
Casino win revenue in July 2024 plummeted by 15% year-over-year to $709.2 million on the Strip. while the three-month win revenue from May 1 to July 31, fell by 3% to $2.2 billion year-over-year.
It's not all bad, though.
The state of Nevada's win revenue turned the corner in September as revenue increased by 3.4% to $1.3 billion year-over-year. The three-month win revenue, however, decreased by 2.59% to $3.7 billion from July through September year-over-year.
Downtown Las Vegas win revenue in September rocketed by 33% to $91 million year-over-year, and three-month revenue from July through September rose 11.8% to $221.2 million. Reno's win revenue in September increased 12.3% to $71.8 million year-over-year, and its three-month win revenue from July through September rose slightly by 0.79% to $206.5 million.
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