The Nevada Gaming Control Board (NGCB) has released its figures, indicating that 2016 was a quite profitable year for Las Vegas casinos.
Revenues exceeded $25 billion, a significant change occurred in the net income category, and 273 separate casinos in the Silver State generated more than $1 million in gaming revenue.
Revenue up $643 million from 2015
Nevada casinos saw a total revenue of $25.2 billion, an increase from $24.6 billion in 2015. This figure includes money spent on hotel accommodations, gaming, food and beverages, and other attractions.
All regions throughout the state experienced increases in total revenue, except for the Carson Valley area which saw a one percent decrease.
In Nevada history, the total revenue for 2016 ranks as the second-highest. The state recorded a revenue of $25.26 billion in 2007.
The total revenue from the gaming sector amounted to $10.76 billion, which constitutes 42.6 percent of the overall revenue. This figure marks the lowest gaming revenue since 2011.
Revenue from gaming reached its peak at $12.5 billion in 2007. For the last three years, it had remained stable at slightly more than $11 billion.
While there may be a minor decrease in gaming revenue, the rise in overall revenue signifies that night clubs, restaurants, and other attractions are playing a more crucial role in the local economy.
Net income for Nevada casinos soar
In 2015, casinos recorded a net income loss of $661 million. However, in 2016, the tide turned favorably, yielding an impressive income of $979 million.
This is the first year the state has posted positive returns in this category since 2008.
Part of the rebound in total revenue can be attributed to an increase. Additionally, casinos managed to cut their overall expenses by seven percent. A significant reduction in interest expenses, payroll, and general administrative costs contributed to lowering overheads.
The casino industry definitely benefited from the improved economy.
Michael Lawton, a senior researcher for the NGCB, expressed his surprise to the Las Vegas Sun, stating, “I thought there might be one area that wouldn’t record net income, but they all did. This hasn’t happened since 2006.”
273 casinos took in over $1 million in gaming
The Vegas Strip wasn’t the only location in Nevada to report positive figures in 2016. The area that actually experienced the largest increase in total revenue from 2015 was the Reno/Tahoe region. Both cities witnessed a five percent increase in this category.
There are 273 casinos that generate over $1 million in gaming revenue, with 159 of them located in Clark County. These casinos have collectively paid $821 million in gaming taxes, which accounts for 7.6 percent of all gaming revenue in Nevada.
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