Away from gaming hotel casinos on the Las Vegas Strip are earning more money than ever before with all-time records being set for hotel, food and beverage during 2015.
Hotel casinos on the Las Vegas Strip generated more money in 2015 than in 2014 with combined revenue streams bringing in a total of $16.7bn for the year.
Gaming revenue though made up just 34.9 per cent of that total equating to $5.8bn. GGR on The Strip actually fell by 2.5 per cent from the previous year, 10 per cent below 2007’s record gaming revenues.
Nevada Control Board Senior Research analyst Michael Lawton said: “It’s the same trend we’ve been seeing where gaming revenue is not driving the overall figure. We’re only 2.6 per cent below those peak levels. It’s an increase in revenue, but it still resulted in a net loss.”
He added that the Strip’s casinos were hampered by ‘very high general administrative expenses.’
Revenue across the state of Nevada reached close to US$24.6bn in 2015 representing a 2.9 per cent increase on 2014’s figures and falling just 2.6 per cent short of the all-time record set in 2007.
The 271 casinos across the state that generated $1m or more in GGR combined for a net loss of almost $661.8m, representing a reduction of 11 per cent on the net loss of $743.7m for the same period last year.
David Schwartz, Director of the University of Nevada, Las Vegas, Center for Gaming Research, added: “Food is growing and gaming as a percentage is shrinking. What I’m hearing from people is they spend more on food and entertainment than gambling. This is what the visitors seem to want.”
Nevada has 68 casinos owned by publicly traded gaming companies accounted for 78.1 per cent of the statewide gaming revenue in fiscal 2015.