Nevada has been synonymous with casinos. Las Vegas has become the venue for many prize fights as well as gamblers trying their luck in casinos. But if you will look at the numbers, The Nevada casino’s gambling industry has been on a steady decline. Could this mean that Nevada is slowly changing? Could this mean that a lot of people going to the state are not really there to gamble but to enjoy other forms of entertainment?
Nevada Gaming Abstract
According to the latest numbers, the Nevada Casino industry has generated more than $26 billion in annual revenue. This was considered a new record for America’s mecca of gambling. In the 2017 report, the Nevada Gaming Abstract contained financial info on the 272 casinos that have grossed $1 million from gaming revenue for the fiscal year 2017 that ended June 30 of last year.
Regulators mentioned that the net income produced by casinos is at $1.55 billion. This was the first time that the total revenues passed the $26 billion mark. During the previous year, casinos net only $978.95 million in total revenues of $25.23 billion. The total revenue represents the total money spent by patrons on games, rooms, beverages and other attractions offered by the state.
It is true that the casino industry has recovered since the great recession 10 years ago since Nevada was able to surpass the benchmark of $25.25 billion for the fiscal year 2017.
All-Time Low Percentage for Gambling
Though the total revenue of Nevada has been improving, one piece of data that is quite interesting pertains to gambling. According to Nevada officials, gaming revenue for the fiscal year was at $11.11 billion. It was equivalent to 42.4% of the total revenue which is an all-time low percentage wise for the casino industry.
In fact, in 1984, Nevada’s gambling revenue consist as much as 61.9 percent of the total revenue. Ever since then, the numbers have steadily fallen.
What could be the reason for this? If you will look at the numbers of The Gaming Abstract, hotel rooms accounted for $6.16 billion which is 23.6% of the total revenue of the gambling industry for that year. You also have food sales that account for 14.9% while beverages at 6.9%. This only goes to show that people are now going to casinos mainly not to gamble but to also enjoy other amenities provided by Nevada.
However, it is still true that casinos remain a large draw in Nevada. 62 casinos owned by public companies have accounted for 72.5% of the entire total gaming revenue for the fiscal year 2017.
The Nevada Gaming Abstract gives us a clear picture how the markets have changed. Though the numbers are steadily increasing for the Nevada Gaming industry, it remains true that through the years, gambling is no longer as popular as it once was. Should casinos refocus on what the casinos were originally made for in order to increase their chunk of income from gambling? Or should they keep on doing what they’ve been doing for the past years and diversify their income from other areas?