Nevada’s Largest Casinos Show Gains; Break Losing Streak
The Nevada Gaming Abstract report shows that the larger casinos of the state have been able to finally break a long losing streak for yearly earnings.
Once a year ends, the governing body of casinos in an individual state will release various reports showing how the venues of that particular state fared for the year. These reports are used for a variety of reasons, including showing how venues are doing in regards to total earnings and revenues created from particular games. The gaming regulators in Nevada recently released the Nevada Gaming Abstract to show the performance of the larger venues of the state, with 2016 finally breaking a long losing streak.
The 2016 Report
The report released by regulators showed that the Fiscal Year 2016, a year that ended on the 30th of June, $1 million or more was grossed in gaming revenues were earned by 273 gaming venues. Net income for the Nevada Casinos came to $979 million from revenues of $25.23 billion.
For the Fiscal Year of 2015, the casinos saw a net loss of just over $661 million within revenues of $24.6 billion. Reportedly, the state was able to break a losing streak that had taken place each fiscal year beginning from 2008. The slow recovery process seems to be coming to an end and the state is beginning to see a turn around after the Great Recession began in 2008.
The casino industry of the state considers total revenues being money that is spent by visitors in areas of gaming, hotel stays, dining, beverage and other attractions. Many casino operators just recently announced a new charge for Sin City which will include patrons paying for parking at venues. This new charge will see even more revenues created for the state.
The term net income refers to the money that is kept by casinos after their expenses have been paid. This amount is also not counting federal income tax deductions and other expenses. For the casinos of the state, total expenses decreased by more than 7% for 2016 Fiscal Year by a total amount of $831 million.
The gaming win for the state was set at $10.76 billion which is just over 42% of the total revenues in the report. This is considered low with 2015 showing 43.2%. This figure actually shows that the state is starting to rely less on casino gaming and focus more on other types of attractions. The millennial generation is the new group to impress and they are not keen on playing blackjack or hitting the slot machines. It has been projected that Las Vegas will see a big change as to what is offered by way of entertainment over the new few years to meet the technology and entertainment demands of the new generation of visitors.
As far as total revenues are concerned, gaming brought in the largest amount at $10.76 billion. Guest rooms at hotels produced $5.8 billion in revenues while food created $3.9 billion. Beverages came in at $1.7 billion and other spending totaled $3 billion.
Breaking down the totals shows that Clark County had the most casinos hitting the $1 million gross mark during the Fiscal Year at 159. These venues created $748.2 million of the total revenues earned. 90% of the total revenue for the state came from this area. The Strip earned $17.1 billion in total revenues which is a big chunk of the state’s earnings.
It will be interesting to see where Nevada goes from here as the new Fiscal Year continues. Overall, there could be changes on the horizon as to what types of entertainment are offered. We shall stay tuned to see what happens as the gambling landscape is constantly changing.