Nevada Casinos Post Record Food and Bev Sales For 2019

On Friday, the V published its 2019 Gaming Abstract, a compilation of cumulative casino financial information grossing at least $1 million or more in gaming income during the fiscal year ending June 30, 2019. A total of 290 approved casino operators eligible for inclusion.

Revenue totals more than $24.54 billion for the 290 casinos. Gaming accounted for the largest share of $8.75 billion (35.7 percent). Next it was rooms at $6.44 billion, or 26.3 percent of income from the casino.

The casinos reported net income of $2.05 billion after investment, reversing a net loss of $1.16 billion in the fiscal year of 2018. The debt reorganisation of Caesars Entertainment has been the culprit for the loss in 2018.

In FY2019 the estimated average casino had $84.6 million in revenue.

Las Vegas casinos and right across the state no longer rely so heavily on their operations in gaming. Gross gaming revenue (GGR) accounted for 54.7 percent of total revenue two decades ago. Now casino win is less than 36 percent liable.

In other areas, the resorts have increased revenues from lodging, food and beverage, as well as entertainment and retail.

In 2009, casinos earned around $4.26 billion from their guest rooms–meaning that hotel income has increased 51 percent, or $2.18 billion, in just a decade. Room occupancy in 2009 was 82.2 percent, and last year it was 84.9 percent.

Higher rates of occupancy lead to higher nightly costs, but the 2.7 percent increase in occupancy is not the only reason why casinos saw room revenue leap nearly $2.2 billion. Casinos have steadily increased their resort fees over the past decade–those annoying, compulsory additional fees to nightly rates that provide services such as use of the fitness centre, free local and toll-free calls, boarding pass printing, and Wi-Fi.

Average resort fees at luxury properties like the Bellagio, Wynn, and Palazzo are as high as $45 per day.

Recording revenues for food and beverage sales in 2019 faces some uproar from critics who say the casinos are actually increasing their profits by reducing patronage benefits.

A Twitter user commented: “It’s because the beverages used to be free but now you can almost die of thirst waiting for a free drink.”  Comparing the 2019 NGCB Gaming Abstract with the 2009 report, however, casinos are actually delivering more food and beverage comps.

Total revenue for the report includes the free food and beverages. In 2019, rooms were also given out by casinos. It has earned more than $1.27 billion in free hotel stays, up from $940.4 million in 2009.

2009                                 2019

Food Comps  $659K     $686K (+4.1 percent)

Free Drinks    $601K      $940K (+56.4 percent)