The Nevada Gaming Control Board released on Thursday the annual Gaming Abstract, a 250-page report containing information about the financial performance of the state’s gambling venues in fiscal 2015. The state gambling regulator reported annual revenue of $24.6 billion, up $695.4 million from the figure posted for the previous year.
This is the fifth consecutive annual revenue increase but it is still a bit far from the $25.3-billion revenue peak reported in 2007 prior to the global recession. It is important to note that the results for the fiscal 2015 are the third highest ever posted since casino gambling was legalized within the state’s borders.
The annual Gaming Abstract included information about Nevada’s 271 non-restricted casino licensees that generate more than $1 million in gambling revenue.
Commenting on the posted results, Mike Lawton, analyst at the Nevada Gaming Control Board, pointed out that in fiscal 2015, revenue kept on shifting from the gaming floor to other offerings at the state’s hotel and casino resorts. Last year, Nevada casinos generated a total of $10.6 billion or revenue from those accounted to 43.2% of the overall income. In other words, accommodation, food and beverage, and other options generated about $14 billion or 56.8% of the overall figure posted.
Fiscal 2004 was the last time when revenue from casino floors accounted for more than 50% of the overall turnover. David Schwartz, Director of the Center for Gaming Research at the University of Nevada, said that the market is obviously changing and customers at Nevada casinos seem to be more willing to spend more on food and entertainment options than on gambling.
However, the posted results are prior to the calculation of expenses. And fiscal 2015 turned out to be the seventh consecutive year when expenses turned profits into net loss. The amount of $661.8 million in net loss was reported for the fiscal year, down $81.9 million than the figure posted for fiscal 2014.
Interest and certain accounting write-downs made up $4.85 billion of all expenses. Departmental expenses and cost of sales made up the remaining expenses of $14.46 billion. Part of the overall number was attributed to gambling operator Caesars Entertainment Corp. and its main unit Caesars Entertainment Operating Company, which is currently facing a billion-dollar bankruptcy case.
Prior to the global recession, fiscal 2002 was the only time when the state’s gambling venues reported net loss.
