Net loss of $1.2B for Nev. casinos
January 24, 2013
Nevada’s major casinos reported a net loss of $1.2 billion in Fiscal 2012 on total revenues of more than $22.9 billion — not what you’d call good news but still an improvement over 2011 when the resorts reported a net loss of nearly $4 billion.The numbers are contained in the state’s annual Gaming Abstract for Fiscal 2012, released Wednesday, which shows the net loss despite 4.4 percent growth in total revenues for the fiscal year.Part of the reason for the negative number is a reduction to net profit due to interest payments and depreciation. A major culprit is likely the bankruptcy filing by Stations Casinos, which has casinos all across Nevada. However, the abstract doesn’t include any specifics about Stations.Control Board Analyst Mike Lawton said gaming is recovering from the recession, albeit slowly. He said total revenues were up more than $965 million for the year. That is the second consecutive increase after three years of declines in total revenues. The total revenue of $22.9 billion includes money spent by patrons on gaming and also on rooms, food, beverages and the catch-all “other” that totals all other resort revenues from retail shops to shows and spas. Gaming revenues accounted for just $10.28 billion of that — the lowest percentage in state history at just 44.8 percent of total revenue. In fiscal 2011 it was more than 46 percent of total revenue.Lawton said that percentage has decreased every year for well over a decade as major integrated resorts continue to expand offerings beyond gambling in an effort to induce greater spending by visitors.In 2012, however, gaming revenue did increase by $115 million, just over 1 percent. Revenue from rooms was up $378 million, 8.7 percent; food revenues up $205 million, 6.3 percent; and beverage sales up $130 million or 8 percent. As a result, non-gaming revenues now make up 55.2 percent of the total.Total expenses reported in the abstract were down 18.3 percent in fiscal 2012, their lowest point since 2004. Likewise, the average total number of employees in those resorts dipped a bit from 174,381 to 172,006.Clark County’s 152 casinos reported a net loss of $1.16 billion, nearly all of the statewide total.While Washoe casinos booked a 102.7 million loss for the year, Lawton said the 32 million-dollar properties there enjoyed their first increase in total revenue after five years of decreases.The Carson Valley Area, which includes valley portions of Douglas County, had a much better year, reporting net income of just over $7 million. The 15 casinos there netted just $533,000 in fiscal 2011.South Shore casinos at Lake Tahoe had basically a flat year. The $24.9 million loss on $343.5 million in total revenue was just 1 percent higher than 2011.Altogether, the 265 casinos around the state that were included in the report paid $799.6 million in state gaming taxes and fees.