Nevada Casinos Return to Profit in FY 2016January 13, 2017 2:15 pm
This week, the Nevada Gaming Control Board released its annual report on how its casinos fared throughout the Fiscal Year ending June 30th, and according to the results the Silver State has recorded its first profitable year since the Great Recession struck in 2008.
The country’s largest casino market has 273 casinos that generate gambling revenue of $1 million or above, and in FY 2016 they collected a combined $25.23 billion, just 0.1% less than the record set in 2007 of $25.3 billion. The state subsequently received $821 million by way of gambling taxes.
In the meantime, Nevada’s aim of becoming more of an all-round tourist destination seems to be paying dividends, and in 2016 gaming win accounted for just 42.6% of overall revenues, breaking last year’s record of 43.2%. Helping Nevada to return to positive growth in 2016 was the casinos’ room rentals and fees which produced a net income of $979 million, compared to a net loss of $661.8 million in 2015. Commenting on the industry’s overall impressive results, Michael Lawton, Senior Research Analyst for the Nevada Gaming Control Board, stated:
“It’s been a long road to get back in the black. It’s good not only because it’s net income for the first time, but because it’s net income in all areas across the board.”
Total Revenue for FY 2016
The Las Vegas Strip
In FY 2016, the Las Vegas Strip accounted for around 68% of Nevada’s total revenues, or $17.1 billion, with its net income amounting to $279.4 million. That figure was around 2% more than the previous fiscal year, while its gambling revenues were higher by one-quarter of a percent. Room revenues, on the other hand, soared by 8%, and its food business, too, was up by 3%
Back in 1990, gambling revenues accounted for around 58% of The Strip’s revenues, but in 2016 that figure stood at just 34.2%. Commenting on the dramatic shift, David Schwartz, director of the Center for Gaming Research at the University of Nevada, explained that the industry’s revenue pattern had shifted over the years, and that Nevada casino resorts were now about “more than just gambling”.