You might think that Nevada casinos make a big profit every year, given the fact that Las Vegas is known as the capital city of gambling but 2016 was the first year since 2008 when the gambling places from this state recorded a net income. This profit wasn’t generated by gambling winnings, though. Room rentals and other fees seem to be the most important sources of revenue for these casinos.
Statistics show that last year 42.9 million tourists visited Las Vegas, setting a new record for the City of Lights. This was an important factor which contributed to the total revenue amount, as more people used the services offered by casinos, such as room rentals, restaurants or entertainment. This year, gambling revenues dropped, while room and food revenues were on an ascending path, meaning that the revenue pattern has changed compared to previous years.
Public companies earned a big amount of the total net revenue, totaling 70 percent of the entire sum. The drop in the gambling revenues might be caused by the migration of gamblers from land-based casinos to online gambling places, which offers them easier ways to place bets, without having to get out of their homes.
Although Las Vegas is the first choice for lots of people when it comes to playing casino games, some tourists might only come here to visit the city now, choosing to gamble from their hotel rooms or when they’re out in the city, enjoying a good meal at a restaurant. Casinos will surely come up with lots of promotions, such as no deposit bonuses to determine punters to place bigger bets that will increase the revenue from gambling.
The fact that Nevada casinos started making profit again might mean that they will start investing more in their facilities, offering innovative services and better games. Also, they might use more funds to improve the conditions of their rooms, the services offered by restaurants and other services which contributed to this income, to attract even more tourists in the future who might increase the gambling revenue, too.
This information regarding the amount of money Nevada casinos earned in fiscal 2016 was provided by Gaming Abstract in an annual report which included 273 casinos from this state. This report includes details about gambling revenues, room occupancy rates and other information like the number of employees or sales revenue from restaurants.
David Schwartz, the director of the Gaming Research Center from the University of Nevada claims that it is not unusual for casinos to earn more from other services than from gambling. He said, in a statement, that Nevada casinos have always been about retail shopping, entertainment venues, bars, and other additional services, along with gambling facilities. They offer a whole package and it all has to be exploited to generate income.
The revenue figure from 2016 was just 0.1 percent away from matching the record that’s been set in 2007, of $25.3 billion. Last year, the revenues totaled $25.2 billion, which is better than in 2015, when casinos lost $662 million on $24.6 billion revenues.
When it comes to gambling revenues, the report says they reached the lowest point ever, of only 34.2 of the total, which is a significant decrease compared to 1990, when it reached 58 percent.
The biggest loss recorded by the gambling industry from Nevada was occurred in 2009 when casinos recorded a loss of $6.8 billion. After that, there was a period of 7 years when gambling places continued losing money. After the positive outcome of 2016, there’s a chance for the industry to get back on track, and the biggest casinos will surely take advantage of this big opportunity they got.
People seem to be less interested in gambling in famous casinos from Las Vegas and they come here mostly for entertainment, parties, and the glamorous lifestyle. People might think that the low gambling revenue is due to the fact that more people won the prizes offered by casinos but they actually spent less time gambling.
Next time you go to Las Vegas, make sure you have the chance to play some casino games, as there might be more opportunities offered by the gambling places to those who try their slots, to make them place bigger bets. If you’re lucky enough, your trip might turn into a really profitable holiday.