Visitors to the Las Vegas Strip are spending in ways that demonstrate the iconic Boulevard is about more than just gambling.
Nevada’s casinos generated $3.4 billion in net income during the state’s 2023 fiscal year that ended June 30, 2023, based on a record $29.8 billion in revenue. That was boosted by Strip customers spending nearly three-quarters of their trip budgets on non-gaming amenities, according to the Gaming Abstract released Friday by the Nevada Gaming Control Board.
The $29.8 billion in revenue increased 8.9% or $2.4 billion compared to fiscal year 2022, when total revenue was $27.4 billion, then a record. Statewide, every market with the exception of the Carson Valley and the balance of smaller counties recorded improved revenue totals compared to 2022, according to Michael Lawton, a senior economic analyst for the Gaming Control Board.
Strip revenue generated in all departments totaled $20.5 billion, a new all-time record; it beat the previous record set last year, Lawton said. This corresponds to an 11.6% or $2.1 billion increase from the previous year. Total revenue increased by 23.8% or $3.9 billion compared to fiscal-year 2019.
Strip room, food, beverage, and other departments accounted for a record 73.4% of total revenue, up from a combined 69.6% year over year. Non-gaming revenues totaled $15 billion, representing a new all-time record and an increase of $2.3 billion or 17.7% versus fiscal-year 2022, the previous record high at $12.8 billion.
“It shows that Nevada’s gaming industry is extremely diversified with its product offerings, which draw visitors from all over the globe, not to just gamble, but to experience other world-class amenities,” Lawton said.
By comparison, Strip gaming revenue of $5.5 billion was down 2.3% or $127.8 million and accounted for 26.6% of total revenue, less than last year’s 30.41%. It was the 25th year in a row that gaming revenues made up less than 50% of all revenues, Lawton said.
“Non-gaming has continued to be a driver for more than 25 years,” said casino consultant Brendan Bussmann, managing partner of B Global. “With what is evolving on the Strip that continues to be an exceptional and diverse entertainment option, whether it’s show, food and beverage, retail or hotels, all of that is helping to drive the Vegas economy and attracting more and more people to come to the destination.”
Gaming continues to serve as an economic engine in Las Vegas and none of the other revenue would happen without it, Bussmann said. He expects the percentage of spending on non-gaming, however, to continue to grow and serve as a model for other markets to follow.
“You see significant input that has finally come to fruition after decades of investment in sports coming off the Super Bowl and Formula One. Those foundations were laid by the rodeo, a college football bowl game, and NASCAR.”
Statewide gaming revenue of $10.9 billion decreased 1% or $111 million from last year’s total of $11.02 billion. It accounted for 36.6% of total revenue, down from last year’s 40.2%.
Statewide room, food, beverage, and other departments accounted for 63.4% of total revenue, up from last year’s 59.8%. Non-gaming revenues totaled $18.9 billion, representing a new all-time record and an increase of $2.5 billion or 15.5% over fiscal-year 2022, the previous high at $16.4 billion.
Strip room revenue totaled $6.8 billion and increased 20.4% or $1.1 billion versus fiscal year 2022. This represents the highest total all-time, beating the previous record set last year. Strip occupancy rates increased from 82.9% to 89.0%, with the average room rate of $236.33 per day up 12.3% from $210.47 in fiscal year 2021. The average daily rate is the highest ever recorded, beating the previous high set last year.
Nevada recorded the second-highest net income, behind last year’s total of $4.38 billion. Every market statewide with the exception of South Lake Tahoe recorded lower net-income totals compared to fiscal year 2022.
The decrease to net income compared to last year was the result of a 13.5% or $1.33 billion increase in departmental expenses and a 16% or $1.8 billion increase in total general and administrative expenses. In fiscal year 2023, net income amounted to a 11.5% return on total revenue compared to 16% in fiscal year 2022.
On the Strip, casinos posted net income of $1.37 billion, third highest all-time. Fiscal-year 2020 was the highest total at $2.7 billion compared to net income of $2.07 billion last year, a decrease of 33.6% or $695.7 million. Net income increased by 31.7% or $331.9 million compared to fiscal year 2019.
Some 300 Nevada casinos generated at least $1 million in gaming revenue for the fiscal year. They paid $1.09 billion in gaming taxes and fees, equating to 10% of their gaming revenue.
In Clark County, 174 casinos grossed $1 million or more in gaming revenue during fiscal-year 2023, generating combined net income of $3.03 billion. In Washoe County, 31 casinos reported combined net income of $227.5 million from total revenues of $1.7 billion.
Elko County had 21 casinos with $99.5 million combined net income. South Shore Lake Tahoe in Douglas County with 5 licensees reported a net loss of $3.8 million. The Carson Valley area with 15 casinos generated net income of $29.8 million. The balance of the state’s 54 casinos earned $57.7 million in combined net income.
Statewide room revenue of $8.1 billion increased 17.9% or $1.2 billion and represents the highest total ever recorded by the Gaming Abstract, beating the previous record of $6.9 billion set last year. Compared to fiscal-year 2019, room revenue increased 26.1% or $1.68 billion. The average daily rate statewide was $203.73, an all-time record beating the previous high of $183.59 set last year with an occupancy of 81%.
Statewide food revenues of $4.7 billion increased 19.5% or $772.7 million, setting a new record and beating the previous one from fiscal-year 2019 by 12.4% or $521.9 million.
Statewide beverage revenue of $2.35 billion increased 8.7% or $188.4 million. This represents the all-time record for beverage revenues, beating the previous record of $2.169 billion set last year. Compared to fiscal year 2019, beverage revenue increased 13.2% or $274.3 million.
In the other category, statewide revenue of $3.721 billion set a new record and increased 10.5% or $353.9 million from last year’s previous record of $3.367 billion. Compared to fiscal year 2019, other revenue increased 22.5% or $683 million.
Strip gaming revenue increased by 22.1% or $985.6 million compared to fiscal year 2019. Strip food revenue totaled $3.7 billion and increased by 21.9% or $657.1 million from last year and represents a new all-time record, beating the previous high set in FY19 by 20.3% or $617.5 million. Strip beverage revenue set an all-time record with $1.6 billion and increased by 10.5% or $154.4 million versus fiscal year 2022, which was the previous record. It was up 17.7% or $244.1 million from fiscal-year 2019.
Other Strip revenue totaled $2.993 billion and increased by 11.3% or $303.4 million and represents a new all-time record beating the previous high set in fiscal year 2018, up 24.1% or $581.2 million from 2019.
Compared to the pre-pandemic fiscal-year 2019, total statewide revenue increased $5.3 billion or 21.7%. Every market statewide recorded total revenue increase compared to 2019 with the exception of Laughlin.
Compared to fiscal-year 2019, statewide non-gaming revenues increased 20.0% or $3.160 billion. All non-gaming revenue departments recorded increases over pre-pandemic amounts recorded in 2019.
Compared to fiscal year 2019, statewide gaming revenue increased 24.7% or $2.2 billion. Laughlin was only market down vs. 2019, Lawton said.
Compared to the pre-pandemic FY 2019, net income improved $1.38 billion or 67.4%. Additionally, every market statewide recorded improved net income compared to fiscal year 2019, with the exception of Laughli.
The number of locations generating $1 million or more in gaming revenue statewide increased by 4 from 296 to 300 in fiscal year 2023.
The average number of employees increased 7.1% from 133,412 in fiscal year 2022 to 142,489 in 2023. There were 162,066 total employees in fiscal-year 2019.
