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During Fiscal Year (FY) 2023, Nevada casinos generated a total of $29.8 billion in total revenue from gaming, hotel rooms, food, beverage, and other amenities. However, they only had a net income of $3.44 billion, according to the annual Gaming Abstract report from the Nevada Gaming Control Board (NGCB).
The Gaming Abstract is different from most Nevada gaming reports. This report covers income and expenses for 300 Nevada casinos reporting at least $1 million in gaming revenue during the fiscal year that runs from July 1 through June 30.
The newest Gaming Abstract is a 179-page report that covers income and expenses from July 1, 2022, through June 31, 2023.
This report, unlike most, gives us a more detailed look at where guests spend money inside Nevada casinos. The monthly gaming reports from the NGCB are focused only on that part of the casinos.
Gaming is a smaller part of Vegas Strip casino revenue than ever before
Before entertainment became so popular Las Vegas was only considered the gaming capital of the US. While gaming is still popular in Las Vegas, it hasn’t been the main source of revenue for casinos for quite some time.
Non-gaming has outpaced gaming revenue on the Vegas Strip for 25 years.
1999 was the first year non-gaming revenue was greater than money derived from gambling at casinos on the Vegas Strip, as noted in a news story by Business Insider. Casinos in this part of Nevada haven’t looked back and the rest of the state is following along.
According to the NGCB report, only 26.6% of Vegas Strip casino revenue in FY 2023 was from gaming. Vegas Strip gaming revenue for the year was $5.45 billion.
This percentage marks a decrease from FY 2022 when gaming revenue accounted for 30.41% of all Vegas Strip casino revenue.
Hotel rooms, dining, drinking, shows, spa treatments, and other non-gaming amenities accounted for 73.4% of Vegas Strip casino revenue for the year. According to the report Vegas Strip non-gaming revenue was split as such:
- Hotel rooms: 33%
- Food: 17.8%
- Beverage: 7.9%
- Other: 14.6%
The Vegas Strip is a unique market. Las Vegas casinos away from the main tourist corridor have more traditional revenue splits.
For example, 49.6% of downtown Las Vegas casino revenue comes from gaming. However, as a whole, Nevada casinos are creeping closer to the Vegas Strip revenue split.
During FY 2023, gaming revenue for casinos throughout the Silver State accounted for 36.6% of total revenue.
The gaming vs. non-gaming revenue gap could increase in 2024
The gaming/non-gaming revenue gap could be even wider when the accounting for FY 2024 is released. The report this year doesn’t include revenue from two major events from the past few months.
The Las Vegas Grand Prix F1 race took place in November and Super Bowl LVII was earlier this month. Neither are included in the 2023 Gaming Abstract.
The F1 race attracted international visitors who gambled. This could provide a more even split in revenue even though money spent on hospitality at some properties may have outweighed gaming.
Super Bowl LVIII had more corporate visitors who may have paid close to $1,000 per night for hotel rooms. However, according to Wynn Resorts CEO Craig Billings, they don’t gamble much. When speaking about the Super Bowl during Wynn Resorts’ Q4 2023 earnings call, Billings said:
“We also have a lot of folks in-house who will never go near a gaming table because there’s a lot of corporate visitation around this particular event.”
Gaming is still a catalyst for Las Vegas casinos but it hasn’t been the primary source of revenue for quite some time. Events like the Super Bowl can break statewide gaming records but that’s only one piece of the puzzle for casinos.
The first weekend of March Madness will be the next big sporting event for visitors in Las Vegas. While this will generate gaming revenue there will be more spent on hotel rooms and parties with food and beverage offerings.
