Posts Tagged ‘casinos’

Revenues Increase But Major Nevada Casinos Lost $4 Billion In FY2011

By Sean Whaley | 2:08 pm January 6th, 2012

CARSON CITY – Nevada’s major casinos saw total revenues increase to $22 billion last fiscal year, but the 256 properties reported a net loss of just under $4 billion, the Gaming Control Board reported today.

It was the third year of losses in a row. The only other loss since records have been kept came in 2002.

The report, called the Nevada Gaming Abstract, analyzes those casino properties grossing $1 million or more in gaming revenue for the year ending June 30, 2011.

It shows that total revenues increased by just over $1.1 billion from Fiscal Year 2010, but the total dollar value of the loss reported by the properties increased as well, by $600 million from the $3.4 billion loss reported in 2010.

Las Vegas Strip. / Photo by Dtobias via Wikimedia Commons.

The abstract shows that 2008 was the last year the major casinos in Nevada turned a collective profit.

Michael Lawton, senior research analyst for the control board, said the report shows mixed results for the gaming industry.

“Really there are two sides to this income statement and the first side obviously is revenues,” he said. “Revenues did increase. They are at $22 billion compared to $20.8 billion last year. That’s the first increase we’ve seen since Fiscal Year 2007, however it’s still about 13 percent below the peak levels we saw in Fiscal Year 2007.”

The expense side continues to show volatility, however, Lawton said.

The report shows that visitors are coming to Nevada and Las Vegas casinos, but they are spending less on gaming and more on other amenities, he said.

Nevada Gaming Abstract 2011 – Selected Statistics By Gaming Market

Area Net Income/Loss % Change from FY2010 Total Revenue % Change from FY 2010 Gaming revenue from FY2010 % Change from FY 2010
Statewide -$4 bil +16.4% $22 bil +5.6% $10.2 bil +2.6%
Clark County -$4 bil +18.7% $19.5 bil +6.8% $8.7 bil +3.8%
Las Vegas Strip -$2.2 bil -14.1% $14.5 bil +9.3% $5.5 bil +6.4%
Downtown Las Vegas -$59.9 mil -18.7% $900 mil -0.6% $496 mil -2.4%
Washoe County -$44.5 mil +61.9% $1.4 bil -4.6% $739 mil -5.2%
Reno/Sparks -$54.1 mil +156% $1.2 bil -4.8% $662 mil -5.1%
South Lake Tahoe -$24 mil -72.7% $344 mil -6% $198 mil -9.1%

“Total revenue” is the money spent by patrons on gaming, rooms, food, beverage and other attractions. “Net income/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.

Gaming revenue accounted for nearly $10.2 billion of the $22 billion in total revenues, or 46.2 percent of the total. The 256 casinos paid $792.4 million in gaming taxes and fees, equating to 7.8 percent of their gaming revenue.

On a county-by-county basis, Clark County had 148 casinos grossing $1 million or more in gaming revenue during FY2011, which generated a combined net loss of just under $4 billion from total revenues of $19.5 billion. Washoe County had 30 casinos, which reported a combined net loss of $44.5 million from total revenues of $1.4 billion.

In FY 2011, 69 casinos owned by public companies accounted for 78.2 percent of the total gaming revenue generated statewide during the fiscal year.

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Audio clips:

Nevada Gaming Control Board analyst Michael Lawton says overall revenues increased in 2011:

010612Lawton1 :24 Fiscal Year 2007.”

Lawton says visitors continue to come to Nevada and Las Vegas, but they are spending less on gaming:

010612Lawton2 :22 and other categories.”

 

 

Double-Digit Decline in Nevada Statewide October Gaming Win Called Disappointing

By Sean Whaley | 11:08 am December 10th, 2009

CARSON CITY – Nevada gaming revenues declined significantly again in October after two months of what was hoped to be the beginnings of a turnaround in the state’s biggest industry.

A state Gaming Control Board official called the 11.6 percent decline in statewide gaming win a “disappointment.” The decline came off of an October 2008 report that was down 22.3 percent over October 2007.

It was the 22nd straight month of statewide consecutive gaming revenue declines.

Total gaming win was just $800 million compared to $905 million in October 2008. It was the lowest win since December 2003.

The state had seen only single-digit declines in gaming win in August and September, hinting at the possibility of a bottoming out of Nevada’s gaming economy.

Frank Streshley, control board Tax and License Division chief, said one reason for the poor performance is that gamblers were luckier than usual on table games in October. The “hold,” or amount of the wagers retained by casinos from gamblers, was lower for most of the major games, from craps to blackjack.

“The luck factor can go either direction,” he said. “Volume on the game side was up.”

The hold on blackjack in October was 10.2 percent versus 12.7 percent in October of 2008. The craps hold was 11.3 percent versus 14 percent in October 2008. Other table games were similarly lower except for baccarat, a game favored by high end players, which was slightly higher compared to October 2008.

Baccarat was one of the few bright spots in the report, Streshley said.

“We continue to seeing strong play on the high end baccarat,” he said.

Casinos won $65.4 million on baccarat in October, up 61.4 percent or about $25 million over last year. The “drop” or the amount wagered by baccarat players was also strong at $709.8 million, up 43.7 percent over October 2008.

The monthly gaming report released today showed total game and table win statewide of $252.5 million, down 10.6 percent over October 2008.

The slot win statewide of $537 million was down 12.1 percent over the previous year.

On the Las Vegas Strip, casinos took in $426.3 million, down 10.3 percent.

Downtown Las Vegas was off 16.4 percent, Reno was down 16 percent and South Lake Tahoe was off 24.1 percent.

The disappointing win came despite a sold out concert by the rock group U2 on Oct. 23 that brought in 42,000 fans to Las Vegas.