Record Profits for Las VegasPublished February 3, 2005 by OCR Editor
Casinos are big business. From your favorite online casino to Las Vegas, billions of dollars in revenues are generated each year by the gambling industry. This past fiscal year has been a good one for Las Vegas.
All in all, the total income of the Las Vegas Strip hotel and and gambling resorts was $11.7 billion, a 12.1 percent increase from a year ago. Net earnings on the Las Vegas Strip were $1.03 billion which was up 99.7 percent from the previous year. In total, more than 3,000 new guest rooms were added to the hotels on the Strip in the fiscal year of 2004. The trend is usually a drop in the hotel occupancy when new rooms are built, but in 2004 the occupancy for the year rose from 91.2 percent to 92.2 percent and the average price of a room in Vegas went up from $103 to $113 per night.
Also, food profits at the Las Vegas hotel casinos went up 9.7 percent to total $2.7 billion; beverage sales were also up 10 percent to $1.1 billion.
1996 is considered the most profitable year for Las Vegas . That year profits hit a record $1.355 billion. Total revenue in all the casinos across Nevada hit a whopping $19.6 billion, up 8.9 percent from the previous year. Downtown Las Vegas casinos claimed a total of $42.1 million in net profits, up 76 percent from fiscal 2003, and $1.1 billion in total revenue, unchanged from fiscal 2003. In contrast to the Strip casinos where 41.9 percent of the total revenue comes from gaming, the downtown clubs receive 60 percent of their income from the tables and slot machines.
Looking at what games account for what percentage of profits over the past 4 years, gaming tables and slot machines are contributing less of the total revenue to the resorts in the state. Last financial year, gaming accounted for 50.5 percent of the $19.5 billion, down from 51.5 percent in fiscal 2003 and 53 percent in fiscal 2000.
In 2000, the 37 largest casinos on the Strip reported 45.9 percent of their income came from gaming. In fiscal 2004, 41.9 percent of the biggest casinos' revenue was received from the tables and slot machines. Last fiscal year, 53.5 percent of the gaming revenue in Strip casinos came from slot machines with 43.4 percent from the table games including keno and bingo. The sports pool and the race book each accounted for 1.1 percent of the $4.9 billion in gaming income. However you look at it, Las Vegas gambling is big business.