Washoe County Gaming Continues Declining

The gaming win, a leading economic indicator in Nevada, plunged again in October, the latest reporting month. Statewide, the take was down 11.6% from the same period in 2008. Put another way, the total was the lowest since December, 2003. In Washoe County it was down 13.9%, the 28th straight month of year-over-year declining revenues. Drilling down a bit, we get local declines like this - Reno at 16%, South Lake Tahoe at 24.1%, and the Carson City area at 7.3%. Adding to the bleak picture, another casino is going down - Bill's Lake Tahoe Casino in Stateline is closing on January 4. If there is a bottom to this, we're not there yet.

As a primary revenue source for Nevada (30% of the general fund), it looks to me like gaming is a sinking ship that is beyond repair. The numbers are indisputable - Nevada is simply no longer the nation's gambling mecca. When given the choice they now have, all those gamblers in California go to their local Indian casino rather than drive over the hill to Reno or Lake Tahoe. Throw in a recession and winter storms and it's really no contest.

It's obviously time to bite the poker chip and get serious about restructuring Nevada's tax and revenue structure, from Carson City on down to the local government level. Depending on others to pay our bills no longer works and I don't see it coming back. If you've got some ideas, leave a comment and let's talk it over.

Sources: Nevada Gaming Control Board, Reno Gazette-Journal.

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