Nevada Casinos Crawl Back Into Profit

ian bruce
Written by Ian Bruce
Published on Wednesday 18th January 2017, 9:45 am

Nevada Casinos Crawl Back Into Profit

The Nevada Gaming Control Board has released figures for the fiscal year to 2016 which show that casinos in the state have collectively posted an income of $978.9 million, ending several years of losses. The corresponding figure for the fiscal year 2015 was a $661.8 million net loss, so the move into profit represents a positive swing of more than $1.5 billion. 

The Nevada Gaming Abstract shows combined financial information for all Nevada gaming licensees that gross $1 million or more in the fiscal year and, in the 12 months to 30 June 2016, there were 273 such licensees. These establishments reported revenues of $25.23 billion, which was significantly better than in the previous year, when revenues totalled $24.59 billion. 

The figures also include non-gambling revenues for hotel accommodation, food, drinks and associated products and services, and the Nevada Gaming Control Board has stated that $10.76 billion, or 42.6%, was gaming revenue. That is down from the fiscal year 2015 figure of 43.2%, and indicates – not for the first time – that entertainment and hospitality revenues are becoming increasingly important to the bottom line of casinos in Nevada.

Casinos in Nevada, like everywhere else in the world, are having to adapt to a fast-changing environment where gamblers need more of an incentive to visit a bricks-and-mortar establishment than was the case a couple of decades ago. One way in which Nevada has sought to adapt to the fluctuating landscape is by introducing legislation which permits online gambling. Only online poker is legal in the state at the time of writing, but pro-gambling lobbyists in the USA are constantly pushing for more games to be legalised, citing the fairly common use of overseas gambling sites and the tax income which is being lost as a result.

We will have to wait and see if casinos in Nevada can continue their positive direction now that they have finally ended their seven year profit drought, but these figures from the state’s Gaming Control Board are certainly encouraging, and should give the industry plenty of motivation to maintain its momentum. Facebook

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