Nevada casinos broke an all-time fiscal year record for total combined revenues in 2018, but the results generated a net loss of $1.168 billion due to higher one-time charges associated with general and administrative expenses.
Major factors in the net loss included corporate write-downs of property and other administrative matters, as well as the one-time charges taken by Caesars Entertainment that were associated with the company’s 30-month bankruptcy reorganization. The bankruptcy process concluded in October 2017.
The Gaming Control Board’s Nevada Gaming Abstract for 2018, released Wednesday, said casinos statewide collected $27.1 billion in total revenue, which included money spend by customers on gaming, hotel rooms, food, beverage, and other attractions.
The figure was a 3.6 percent increase over fiscal year 2017 and marked the state’s eighth consecutive fiscal year increase following three straight years of losses. Gaming revenue accounted for almost $11.6 billion, or 42.8 percent of total revenue mark.
Mike Lawton, the Control Board’s senior research analyst, said the state’s net loss was the eighth in the last 10 years and came after casinos had posted profits for two fiscal years in a row. In fiscal 2017, Nevada casinos recorded a net income of $1.55 billion on total revenues of $26.1 billion.
“The good news is that these are one-time charges,” Lawton said.
The Abstract included the revenues and expenses for 289 casinos statewide that grossed $1 million or more in gaming revenue covering the 12 months ending on June 30. All five revenue areas finished up when compared with the totals for 2017.
However, total general and administrative expenses were up 30.4 percent in 2018 and other general and administrative expenses rose 109.2 percent compared to fiscal 2017. Bankruptcy reorganization changes fell into the later category. Caesars was the only casino company to complete a bankruptcy reorganization in the fiscal year.
On the Las Vegas Strip, total revenues of $18.3 billion in the fiscal year was a 3.1 percent increase over 2017. Gaming revenue rose 4.1 percent to almost $6.3 billion.
Gaming accounted for 34.3 percent of the total revenues on the Strip, a slight increase from 34 percent in 2017. In 1984, gaming accounted close to 59 percent of all Las Vegas Strip revenues, and the figure has slipped in the last 35 years.
“The trend line has been around 34 percent the last few years,” Lawton said.
In Reno/Sparks, total revenue increased 7.5 percent to $1.5 billion and gaming revenue was up 6.2 percent to $758.7 million.
The report found that 76.2 percent of the gambling revenue came from 61 casinos owned by publicly traded companies.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
