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How Gaming Benefits Nevada

Tourism

The tourism industry has invested nearly $40 billion during the past two decades in fixed assets alone, with cumulative investments now totaling more than $44 billion. Not unlike other industries throughout the nation, these assets struggled to perform during and post-recession. That said, in fiscal year 2014, Nevada attracted nearly 53 million visitors, and its largest hotel-casinos reported nearly $24 billion in gross revenues.

Nevada reported 2,981 active gaming licensees during fiscal year 2014. Only 451 of licensees were non-restricted gaming operators. The balance included 2,007 restricted operators, 373 manufacturers and distributors, 60 slot route operators and 90 other licensees. Nevada's hotel-casinos have evolved significantly during the past two decades. Where gaming represented 60 percent of non-restricted licensee revenues in 1994, that figured dropped to 49 percent in 2004 and 44 percent in 2014. Nevada's hotel-casinos have evolved to become multi-faceted entertainment destinations with restaurants, shopping, meetings and special events all becoming increasingly important elements of the visitor experience.

Key Statistics for Nevada Gaming Operators
FY 2013 and 2014

Click here for FY 2009 through 2014
FY 2013 FY 2014 5-Yr
Growth Rate
Annual
Growth Rate
VISITATION
Visitor Volume 52,058,741 52,839,229 1.2% 1.5%
Airport Volumes 45,665,931 46,100,735 0.2% 1.0%
Vehicle Traffic Volume (Entering Nevada) 27,840,768 29,315,359 0.9% 5.3%
Convention Attendance 5,593,855 5,817,567 0.5% 4.0%
Hotel Occupancy Rate 79.4% 80.5% 0.7% 1.4%
Hotel Room Nights Occupied 56,400,224 57,044,803 1.8% 1.1%
Hotel Room Inventory 194,708 194,227 1.0% -0.2%
GAMING
Total Gross Gaming Revenue $10,905,669,725 $11,226,673,860 0.8% 2.9%
Slot Machine Coin In $106,107,750,978 $104,976,466,499 -2.4% -1.1%
Number of Slot Machines 158,271 154,996 -2.0% -2.1%
Number of Table Games 6,149 6,089 -1.7% -1.0%
Total Number of Licensed Gaming Operations 2,933 2,981 0.5% 1.6%
Total Number of Restricted Gaming Operations 2,011 2,007 -0.9% -0.2%
INVESTMENT AND KEY OPERATING RATIOS
Non-Restricted Licensee Revenue* $23,075,800,492 $23,895,954,169 1.7% 3.6%
Gaming Revenue $10,395,664,377 $10,641,153,886 0.2% 2.4%
Rooms Revenue $4,788,237,661 $5,145,739,071 3.8% 7.5%
Food Revenue $3,454,351,627 $3,570,804,695 2.3% 3.4%
Beverage Revenue $1,660,036,952 $1,674,834,485 4.7% 0.9%
Other Revenue $2,777,509,875 $2,863,422,032 1.1% 3.1%
Total Fixed Asset Value (Capital Investment) $60,745,558,193 $61,204,278,222 2.8% 0.8%
New Capital Investment $243,123,083 $458,720,029 n/a n/a
Net Income Before Federal Taxes and Extraordinary Items ($1,348,992,937) ($743,688,008) n/a n/a
Percentage of Total Revenue -5.8% -3.1%
Average Daily Room Rate $107.96 $112.58 2.4% 4.3%
Revenue Per Available Room (REVPAR) $85.72 $90.63 3.1% 5.7%
Return on Average Assets 2.2% 2.9%
Return on Invested Capital 2.9% 4.6%
Casino Hotels and Gaming Employment 187,400 195,000 0.6% 4.1%
Casino Hotels and Gaming as a Percent of All Employment 15.9% 16.0%
MAJOR GAMING TAX PAYMENTS
Room Tax Collections** $568,336,247 $620,917,512 8.1% 9.3%
State General Fund Gaming Tax Collections $710,525,734 $718,816,067 0.8% 1.2%
Casino/Live Entertainment $125,706,218 $139,156,241 4.0% 10.7%

Note: *Non-restricted licensee revenue with gaming revenues of $1 M+. **FY 2011 estimated based on best available information. Sources: The Nevada Gaming Abstract; Nevada Department of Employment, Training and Rehabilitation; Nevada Department of Taxation; Nevada Commission on Tourism; Nevada Gaming Control Board; Economic Forum and Applied Analysis.

Nevada's Changing Economy and the Impact on Casino-Hotel Revenue Distribution

1994

1994
Gaming
60%
Rooms
15%
Food
12%
Beverage
5%
Other
8%

2004

2004
Gaming
49%
Rooms
20%
Food
14%
Beverage
6%
Other
11%

2014

2014
Gaming
44%
Rooms
22%
Food
15%
Beverage
7%
Other
12%

Sources: The Nevada Gaming Abstract; the Nevada Department of Employment, Training and Rehabilitation; Nevada Department of Taxation; Nevada Commission on Tourism; Nevada Gaming Control Board; Economic Forum and Applied Analysis.