Nevada casinos have become a reference in the United States. Despite having generated less income last year due to the pandemic, its profits increased. This is indicated by the figures in the report presented by the Nevada Gaming Control Board for fiscal year 2020.
According to data from the regulator, the state’s largest casino operators (with annual revenues greater than $ 1 million), made combined revenues of $ 18.35 billion during the 12 months ending June 30 of last year. This represents almost 25% less than the $ 24.55 billion that these operators generated in fiscal year 2019.
In fiscal year 2020, total revenue was $ 6.75 billion, $ 2 billion less than in 2019. However, gaming’s share of total revenue increased 1.1 points to 36.8%.
The rest of the sources of income fell in terms of participation and value in dollars. Room revenue decreased almost 27% to $ 4.72 billion, food by 25.4% to $ 3.13 billion, while beverages fell 28.3% to $ 1.49 billion. The ‘other’ box on the balance sheet decreased nearly 25% to $ 2.27 billion.
Slots lead the ranking
The slot sector remained the main source of income for casinos with $ 6.4 billion (-21.3%). In second place were table games with $ 2.52 billion (-24.5%), then sports bets that added $ 216.7 million (-19.3%). Followed by poker with $ 102 million (-39.4%) and lastly race bets that added $ 29.7 million (-31%).
Overall gaming revenue was down by $ 2.5 billion on comps issued by casinos. That was less than the $ 3.2 billion recorded during fiscal 2019.
These revenues were generated despite the fact that Nevada casinos were closed for 78 days in the second half of fiscal year 2020. That is, during the first wave of coronavirus that hit the state.
Room occupancy fell 10.5 points year-on-year to 74.7% during fiscal year 20. Room occupancy rates fell 10.5 points year-on-year to 74.4% in fiscal year 20. While occupancy decreased just 2.4% between April and May.
The occupancy rate for June rose to 38.7%, although it was more than 50 points below that of the same month in the previous period.
The casinos continue the fight
After the casinos reopened on June 4, they were able to operate but with many limitations in terms of their capacity. The other services apart from the games were kept closed.
Another factor that contributed to cost savings was the closure that occurred in the spring. Costs fell almost 50% to $ 5.5 billion in fiscal 2020. The resulting combined net income from casinos before taxes and extraordinary items was about $ 2.9 billion, about $ 850 million more than the figures of 2019.
Nevada casinos were able to hold on throughout 2020 and this year they have continued their fight. Governor Steve Sisolak ordered the capacity limit to be lowered to 50% from mid-November, due to a second wave of COVID-19 that has swept through the state since then.
Despite Nevada gambling establishments achieving record revenue in November, overall gaming revenue fell.
Data released from a recent survey shows the state has the highest unemployment rate compared to other major urban centers in the U.S. All casino operators except Las Vegas Sands have continued to cut jobs.
According to the fiscal year 2020 summary, casino payrolls have fallen an average of 16% year-on-year, based on cuts reported by personnel departments.
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