Nevada Casino Sector Enjoy First Profits Since 2008
According to the Nevada Gaming Abstract, a review of the industry’s gambling financial results, Nevada’s casinos have made a profit for the first time snice the recession of 2008. The state’s 273 biggest casinos generated income of $979 million last year compared to a net loss of $662 million in 2015.
It was often said that the gambling industry is recession proof however, the last seven years have shown otherwise. Vegas was hit particularly hard with the housing market collapsing and house prices dropping 40%. This went together with rising unemployment and an increase in house-price-to-income ratio.
The year before the recession the gambling sector peaked when casino earning reached a staggering $1.2 billion. This dropped to $721 million as the economy began to slow in 2008 and the following year, when the crisis was at its worst, they were $6.7 billion in the red.
However, last year saw combined revenue across all departments increase to $25.2 billion compared to $24.6 billion the year before. Nonetheless, despite a record number of visitors, gambling revenue was down on 2015 falling from 43.2% of total revenue in 2015 to 42.6% in 2016.
This was even more apparent on the Strip where is represented just 34.2% of overall revenue last year. This discrepancy shows just how well Las Vegas has diversified its revenue streams over the last view years.
While gaming revenue has increased in five out of the last six years it is still 13.8% below the peak levels recorded in 2007. However, room revenue is at an all-time high and things seem set to continue.