Nevada Casinos Break Seven-Year Losing StreakLargest Casinos In State Report Net Income Of Nearly $1B |
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Nevada gaming regulators on Wednesday released the annual Nevada Gaming Abstract, a comprehensive look at the performance of the largest casinos in the state.
According to the report, during Fiscal Year 2016, which ended June 30, there were 273 casinos in Nevada that grossed $1 million or more in gaming revenue. Together, these casinos generated net income of $979 million from total revenues of $25.23 billion.
In FY 2015, the casinos had a net loss of $661.8 million on total revenue of $24.6 billion. According to a report from Vegas Inc, the last time the casinos had net income in a fiscal year (rather than a net loss) was in FY 2008.
The Great Recession hit in 2008, and it’s been a slow recovery for the Nevada casino industry.
What is total revenue?
Total revenue for the Silver State casino industry is the money spent by patrons on gaming, hotel rooms, food, beverage and other attractions. Several Las Vegas casino operators recently announced paid parking plans in an effort to generate even more revenue.
Net income or net loss is the money retained by casinos after expenses have been paid but prior to deducting federal income taxes and prior to accounting for extraordinary expenses.
Nevada casinos had total expenses decrease by 7.7 percent, or $831 million, in FY 2016.
Gaming win at a relative historic low
In FY 2016, gaming win accounted for $10.76 billion, or 42.6 percent, of total revenue. That’s a historic low. FY 2015 had gaming win account for 43.2 percent of total revenue.
What does this mean? The Nevada casino industry is relying less on its slot machines and table games than it ever has in the past. In 1984, the farthest back the data goes, gaming win represented nearly 62 percent of total casino revenue in the fiscal year, according to University of Nevada Las Vegas research.
Here’s a breakdown of FY 2016 total revenue:
Gaming: $10.76 billion
Rooms: $5.8 billion
Food: $3.9 billion
Beverage: $1.7 billion
Other: $3 billion
How did Las Vegas perform?
Clark County had 159 casinos grossing $1 million or more in gaming revenue during FY 2016, which generated combined net income of $748.2 million from total revenues of $22.6 billion.
Ninety percent of statewide total revenue came in Clark County.
The Las Vegas Strip accounted for $17.1 billion of the $25.23 billion in statewide total revenue, which was nearly 70 percent. Net income for Strip area casinos was $279.4 million.
Nevada casino market dominated by corporations
Seventy casinos owned by public companies accounted for 78 percent of the total gaming revenue generated statewide during the fiscal year.
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