Nevada's casino industry lost $662 million last year

Meh.

Article

Nevada's casino industry lost $662 million last year.

"The Strip is at an all-time high in revenue," he said, driven by hotel rooms, the second biggest spending category behind gambling, as well as retail and entertainment. "But gaming is lagging. That's why we're losing money."


wait.. if revenue is at an all time high, then why aren't they making a profit?
and why blame lack of gambling for losing $?

it makes no sense if they have record revenue.
it doesn't matter where the $ comes from. $$$ is coming in.

Because their expenses went up?

A simple example:

Say you get $100 in revenue, have $50 in expenses, making $50 in profit

The next year, you launch an advertising campaign.
You now get a massive $1000 in revenue, and have $500 in expenses not including the cost of the advertising campaign. Unfortunately, the advertising campaign cost you $2000. So your total expenses were $2500 so you just lost $1500.

Gaming in Vegas is no longer as "special" as it once was to me. The proliferation of casinos all around the country means that I have no more than a few hours to drive to play at a casino owned even from casino-poor Texas. In other places, they are even closer. The games in Vegas continue to be degraded and the same, or better, games are available to me here. I can now decide gamble $500 ten times a year as opposed to $5,000 one time a year. I even more comps locally because of competition between different gambling towns and I even get opportunities to see shows that I want to see in these locations.

Vegas is still the king of destinations in my mind but it really is less about gambling that the whole atmosphere. Before, the whole gambling budget and a hefty part of the entertainment budget, went to an annual trip. Now it is spread out more. I do still like playing in Vegas "more" because I can easily leave one casino for another if I don't like the vibe. I like the entertainment in Vegas better because of some of the bigger shows that are out there. I like it as a destination for many reasons. I just don't think it stands as tall in my mind anymore.

I also don't think the folks who work in Vegas are as nice as they were ten years ago. I am not talking about comps or freebies; I am just talking attitude. Staff cuts, bean counters...whatever...they don't make it as special...

RonC, I couldn't agree more! I love Vegas, but the competition for my gambling dollar is now fierce.

I love live Craps, so there is nothing like Vegas. Bouncing from one casino to another playing dice there is one of my greatest pleasures. Whether its playing on the corner of Flamingo and LV Blvd - Caesar's, Linq, Flamingo and Cromwell (better way back when Barbary Coast!), or a downtown trip playing Binions, Nugget and 4 Queens, nothing compares.

However, for my other joy, Video Poker, I don't play much at all in Vegas. The small racinos here in NY have the best pay tables in the country, seriously. All JOB machines are 9/6, even for $.25. So playing 6/5 (outrageous!) or even 8/5 bugs me.

I won't stop going to Vegas, cause the vibe can't be matched, but my lust for the place has been reduced.

20, maybe 25 years ago there were no Illinois based casinos in the Chicagoland area, now I can go to Hollywood in Aurora or Joliet, Harrah's in Joliet, the Grand Victoria in Elgin or Rivers in Des Plaines, nevermind all the ones just across the border in Indiana. Vegas; response to this added competition for the gambling dollar is to offer worse games, (I don't even know if I could find a 6:5 BJ game in IL if I tried to), and to reduce comps. No wonder gambling revenue is down. More competition and an inferior product

Quote: BasesLoaded

However, for my other joy, Video Poker, I don't play much at all in Vegas. The small racinos here in NY have the best pay tables in the country, seriously. All JOB machines are 9/6, even for $.25. So playing 6/5 (outrageous!) or even 8/5 bugs me.

You might want to check what experts like Stanford Wong or our very own WIZ have to say about those "best pay tables in the country."

Quote: JohnnyQ

Meh.Article

The kicker tells a more complete story than the headline bite:

"The good news is that the industry's losses have been narrowing every year, and Lawton is optimistic that the Nevada casino industry will start making money again this year. He said that Vegas expect to have 42 million visit in 2016, which would be a record."

OK, the Las Vegas casino industry lost money last year.

What about the tribal casinos?

Is there any info out there about how profitable or unprofitable they were?

As Indian joints are considered "sovereign entities" I would think no hard info is available.

My guess: most tribal casinos are doing better in comparison.

I suspect a lot of creative corporate accounting and these losses are only on paper, similar to rental real estate where at times a property owner can have positive cash flow but through depreciation, tax benefits etc show a paper loss.

When I say creative accounting I do not mean fraudulent. The LV gaming market is just fine IMO, with exception of properties like SLS that were ridiculous business ideas in the first place.

I think it's the younguns coming into Vegas to party, but not necessarily gamble.

Quote: rsactuary

I think it's the younguns coming into Vegas to party, but not necessarily gamble.

That should make EV even higher for the casinos.

Don't feel sorry for them. Most are doing just fine. Accountants are wizards with the numbers. I'm guessing if there is any issue, it's old debt from when the big boys were buying up everything at pre-recession prices.

That's why casinos in just about every other State can afford new buildings and new hotels aND new ammenities. They don't try and buy all the competion.


ZCore13

The strip is pushing out that entire tier of middle income/working class gambler that wants some sort of value for their money, at least in regards to blackjack. They are being pushed off strip or staying home and gaming locally

Or AP's are all getting filthy rich. According to some of our forum members it's raining money, especially on vulture plays. *Shrugs

Quote: AxelWolf

Or AP's are all getting filthy rich. According to some of our forum members it's raining money, especially on vulture plays. *Shrugs

And don't forget the Roulette players who have figured it out.

THANKS OBAMA

For the record I really cannot stand Obama

And the three little casinos in DETROIT made ......

http://www.freep.com/story/money/business/michigan/2016/01/12/detroit-casinos-turnaround-means-extra-52m-city/78682056/

Really... Casinos are DOWN from GAMBLING... Really? Challenge excepted. I don't believe ANY casino is down from GAMBLING. If they take in 100 mill gambling and their cost of hotels/etc/etc past just the casino is more than 100 mill, then they MADE 100 mill from gambling and lost money on other expenses. They have built in edges and complete morons dumping money at their feet night in and night out.

"Revenue is up 24.1 BILLION, but omg the casino dropped 640 million in operational costs, not even the gaming!"

Others have already hit the nail on the head... Local casinos have 9/6, or at least 9/5...etc. Vegas makes BJ 6:5 and VP 7:5 and wonder why people are gambling less.

...REALLY?

Not only that... I bet they didn't even LOSE money at all. I bet the revenue was just down from what it was, not that they lost money at all. Let people went because they offer shittier and shittier games. They didn't lose anything they drove customers away and now are complaining they didn't get the customers money. LOL

Quote: SanchoPanza

You might want to check what experts like Stanford Wong or our very own WIZ have to say about those "best pay tables in the country."

I hate NY state-run racinos so much. Same goes for WA state casinos. Terrible that they deceive players who believe paytables matter there.

Quote: tringlomane

I hate NY state-run racinos so much. Same goes for WA state casinos. Terrible that they deceive players who believe paytables matter there.

I live in WA and while gambling is available, Vegas still offers a better product and experience. The tribal casinos here are not nearly as pleasant as Vegas, are in the middle of nowhere with crappy food onsite, don't comp drinks, have dealer personalities ranging from openly hostile to indifferent, and fail to offer some of my favorite games (no true VP allowed.) I enjoy 1 or two 4 day trips to Vegas each year (on my way this Thursday.) However, Vegas is doing their best to degrade the gambling product to the point where this may not continue to be the case.

Quote: coilman

And the three little casinos in DETROIT made ......

http://www.freep.com/story/money/business/michigan/2016/01/12/detroit-casinos-turnaround-means-extra-52m-city/78682056/

The Free Press article is interesting, but this is apples to oranges. We don't know (yet) whether they made or lost money. Revenue is their gross, not net, right ?

"Taxes from casino gambling have been a key revenue source for the city of Detroit, which exited bankruptcy in December 2014. In recent years they represented about 16% of all of city revenue.