The past few years have been hard on the state of Nevada in regards to the casino industry. Having been in the red for several years, the state lost $662 million in 2015 and continues to see a downward trend when it comes to casino gaming revenues. Casinos do bring in a great deal of cash, with the 271 casinos of the state earning $24.6 billion for the 2015 Fiscal Year.
However, the problem is that the visitors to the state are spending money on shows, booze and dining rather than actual casino gambling. A senior research analyst for the Gaming Control Board, Mike Lawton, has found that people are not gambling as much which means they are not losing as much, paying towards the state.
According to TotallyGaming, Lawton says The Strip is seeing an all-time high in revenues. The Strip is driven by hotel bookings, retail and entertainment. Gaming is lagging behind and this is why the state is losing money. The trend for less action at the casinos seems to have begun during the Great Recession back in 2008.
More people than ever are traveling to Las Vegas but they are spending their money differently. Gaming revenues have not been able to catch up and non-gaming revenues are leading the charge. Despite the change in spending, the gaming industry losses have been narrowing over recent years and many are optimistic that the casino industry of the state will begin to make money in 2016. Las Vegas is expected to see as many as 42 million visitors this year, which would be a record for the city.
In the meantime, many venues are considering adding to or upgrading their non-gaming offerings to be able to make up for revenue losses from the gaming.