Nevada gambling revenues in 2011 proportionately smallest ever recorded

Nevada gambling revenues in 2011 proportionately smallest ever recorded
Charles Higgins, Las Vegas Examiner

The Nevada Gaming Control Board released findings today that showed money won from gamblers in the state made up a record low share ( 46.2% ) of the casino industry's total generated revenues during the past fiscal year. Conversely, spending on food, beverages, and other amenities produced a record high share ( 34.1% ) of total casino revenues last year. Both general trends support analysts and casino operators observations that Nevada and Las Vegas visitors are exhibiting changes in general spending patterns compared to historical trends. In 1994, gaming revenues represented 60% of total revenues in state casinos.

According to a Vegas Inc article , the observed spending pattern shifts began with the onset of the Las Vegas megaresort building trend in the 1990's. The opening of the Mirage in 1989 along with the subsequent massive casino building construction boom in the 1990's and their non-gaming offerings provided tourists with multiple spending options beyond gambling. Addition of high - end dining venues, big production shows, and nightclubs in the late 1990's further accelerated the spending changes.

Total revenues for the 41 gaming locations on the Strip generated total revenues of $14.5 billion last year, which comprised 66 percent of total state revenue. Beverage revenues increased nearly 10% to $1.5 billion in 2011. The Strip casinos collected 9.3% more total revenues ending June 30, 2011 as compared to the previous year. Despite that increase, they still posted $2.2 billion in losses due to recessional effects of increased depreciation, higher interest payments, and additional debt and administrative expenses.