(Las Vegas gaming revenue article updated with additional analyst commentary.)

NEW YORK ( TheStreet) -- Casino stocks were in the red as gambling revenue in Las Vegas fell in January.

During the month, statewide revenue dipped less than 1% to $877.4 million, while revenue on the Las Vegas Strip dropped 2.5% to $482.7 million. This marks the fourth straight month that gaming revenue in Nevada has declined.

The decline came as a surprise to Wall Street.

"Much was made of the strong start to the year with visitor and convention volumes up significantly in January on the Strip," wrote Wells Fargo analyst Carol Santarelli. "Add in the Cosmopolitan opening in December and a fairly easy comparison, despite having one less weekend day in January 2011, and we believe expectations for January results on the Strip certainly called for year-over-year growth."

"We view these Strip results as disappointing, even adjusting for hold," JPMorgan analyst Joseph Greff wrote in a note. "While one can't view from aggregate results, we believe there is a big disparity in performance between relatively better performing higher-end properties and underperforming mid-tier and lower price point Strip properties."

But January's report wasn't all bad. The locals market generated $188.8 million in revenue, a 3.9% increase from last year. This was unexpected given Boyd Gaming's ( BYD) concerning comments made during its fourth-quarter conference call aboutv its outlook for the first half of the year.

Boyd operates a chunk of its casinos in the Las Vegas locals market.

Shares of Las Vegas Sands ( LVS) were off 3.9% to $40.58, Boyd Gaming was declining 3.1% to $9.57, Wynn Resorts ( WYNN) fell 3.3% to $123.87, and MGM Resorts ( MGM) was dropping 4.7% to $12.88.

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--Written by Jeanine Poggi in New York.

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