Nevada casinos continue recovery
Nevada’s major casinos continued their recovery in Fiscal Year 2014.
But total revenue of $23.9 billion — while up more than $820 million over the year before — still was less than 2007’s peak of $25.3 billion.
The statistics were released Friday by the Gaming Control Board in its annual 2014 Gaming Abstract, which reports revenues and expenses for the 270 non-restricted licensees grossing more than $1 million.
Board analyst Mike Lawton said one good indicator was the number of resorts grossing more than $1 million increased by seven during FY2014.
He said this is the fourth consecutive increase in total revenue following three consecutive decreases during the recession.
According to the Abstract, even though gaming win remains significantly below its peak, revenues from room rents, food and beverages set all-time records in 2014.
Revenue from gaming itself accounted for $10.6 billion — just 44.5 percent of total revenues. That is gaming’s lowest percentage of total revenue ever and 15 percent below what it was in 2007.
That means everything else Nevada resorts offer guests provided 55.5 percent of revenues.
Despite those numbers, Nevada casinos still reported a net loss of $743.7 million in Fiscal 2014. The reason for the loss on paper is tied to two major expense areas: interest payments and “write downs” in the value of casino assets, including depreciation.
Lawton said, however, this is the first time in six years that net loss has been less than $1 billion. It was $1.3 billion in FY2013.
“It’s the smallest net loss and highest net revenue since the peak,” he said.
Before this recession, the only year in which resorts posted a net loss overall was 2002.
Those 270 casinos paid a total of $819.2 million in gaming taxes and fees. Taxation officials don’t break out what the resorts generate in sales and use taxes.
Clark County had 151 casinos grossing $1 million-plus in 2014, 45 of them on the Strip. On the Strip, non-gaming activity generated 63.3 percent of total revenue.
Washoe County’s 36 casinos had a banner year, netting $30.3 million on total revenues of $1.4 billion. Washoe gaming revenue was up 1.4 percent, ending six consecutive decreases.
But because of the impact of Indian casinos in the Bay Area and between San Francisco and Reno, total revenue from Washoe casinos is more than 28 percent less than it was in 2000.
North Shore casinos at Tahoe are reported within the overall Washoe County numbers and couldn’t be broken out.
The six South Shore casinos at Lake Tahoe reported a net loss of $89.3 million on total revenues of $337 million. Total revenue there, for the same reason as Washoe County, has been down in eight of the past 10 years.
The Carson Valley Area, which includes Carson City and valley portions of Douglas County, reported a net income of $3.5 million. That’s about half the net those 15 casinos reported in 2013. In Carson, gaming revenue makes up more than 64 percent of total revenue.
The 270 resorts employed an average of 169,167 employees during the year, about 700 fewer than in 2013.
The 2014 Gaming Abstract can be accessed on the Gaming Control board’s website at gaming.nv.gov under the Statistics and Publications tab.