- Legal States
Julie Moraine January 14, 2022 2 min read
Nevada Abstract Showed the Magnitude of Restrictions Impact
Nevada Gaming Abstract – 2021, a combined financial information report released by the Nevada Gaming Control Board (NGCB), revealed how thin the margins within the casino industry are.
What a Difference a Year Can Make
The report covering the financial results across all casino licensees in Nevada which reach or exceed $1 million in gross gaming revenue for the 12 months ended June 30, 2021, showed the 302 casinos falling within the scope had generated $16.12 billion in revenue.
For the comparable period in the financial year 2020, total revenue was $18.35 billion, placing FY2021 revenue at a decrease of just over 12%. Yet, this affected the industry’s bottom line by nearly $3.1 billion, overturning a $2.89 billion FY2020 profit into a $206.4 million FY2021 loss.
FY2021 gaming revenue accounted for 52.4% of total revenue, or $8.45 billion. Compared to the same period in 2020, gaming revenue posted an increase of 25.3%. The share of gaming revenue was the highest since 2000 when it accounted for 53% of the total.
The slump came from non-gaming revenues that comprise rooms, food, beverage, and other departments, which generated $3.9 billion less or 47.6% of the revenue total to post a decrease of 63.2% year-over-year.
The slump in these departments’ financial performance was down to the restrictions placed on restaurants, bars, and other casino amenities, including showrooms, concerts, and special events, on one side, while slow leisure travel, lack of international travel, and convention events further impacted the casinos’ bottom line, on the other.
County by County Results
In Clark County, 173 casinos covered by the abstract reported total revenue of $13.63 billion, down 16.4% on FY2020. The county accounted for a combined net loss of $742.5 million mainly due to the casinos on the Las Vegas Strip which reported a combined $1.95 billion in loss to drag down the remaining areas which all posted a profit ranging from $60.9 million in Laughlin to $656.6 million in Balance of County.
Statewide was the other loser reporting a loss of $204.6 million on $16.12 billion in revenue. Washoe, South Shore Lake Tahoe, Elko, Carson Valley and Balance of State all reported profits ranging from $37.4 million to $275.3 million.
All 302 casinos featured in the abstract report accounted for a combined $802.3 million in gaming taxes and fees to the state of Nevada. The sum represents 9.5% of their gaming revenue.