Nevada casinos lose 1.21 Billion in 2012

http://www.lvrj.com/business/nevada-casinos-lose-a-combined-1-21-billion-in-fiscal-2012-188054711.html

I would assume MGM and CZR were a most of this.

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Quote: Boz

I would assume MGM and CZR were a most of this.

Never assume.

That $1.21billion was state-wide. 265 casinos. I'm sure MGM and CZR were a big portion, but I'd bet it was well below 50% of that total.

Quote: Boz

I would assume MGM and CZR were a most of this.

The $1.2 billion loss is by far the lowest loss in the last four years.
Collectively the cumulative loss over the past four years has been $14.8 billion and it was never lower than $3 billion before now.

Because this is a government report, it is not supposed to reveal information about any one corporation. They can only report on collective groups that cut across corporate boundaries (i.e. the average performance of the 23 casinos that made over $72 million on the strip in gaming revenue) which includes about 8 corporations.

The only thing that bothers me about this report, is the government lets them include an expense called "other". It isn't depreciation or amortization or interest or utilities or payroll or music or real estate taxes or advertising or the price of the food or the alcohol.

Accounting always has a catchall expense category, and you can think of it as small change, but this "other" category is absolutely huge. It amounts to $14.3 billion over the last 4 years (almost the same as the loss). I assume that this is the category where the casinos hide everything that they don't want the government to know about.

Quote: Boz

http://www.lvrj.com/business/nevada-casinos-lose-a-combined-1-21-billion-in-fiscal-2012-188054711.html

I would assume MGM and CZR were a most of this.

I think Paco has stated in the past that the casino level details are closely held by the Gaming Board to prevent a specific joint from being easy to identify.

Looking at the numbers, though, it is amazing how Baccarat revenue dominates the Strip. In only 18 locations, at 265 tables, $1.3+ Billion was won in the twelve months ending November 30, 2012 (42% of the table games "win"). The only thing approaching Bacc in that same period is the win from 22,377 Multi Denomination slot machines in 38 Strip casinos ($1.2 Billion).

See the abstract here.

Quote: Ayecarumba

Looking at the numbers, though, it is amazing how Baccarat revenue dominates the Strip. In only 18 locations, at 265 tables, $1.3+ Billion was won in the twelve months ending November 30, 2012 (42% of the table games "win"). The only thing approaching Bacc in that same period is the win from 22,377 Multi Denomination slot machines in 38 Strip casinos ($1.2 Billion).

See the abstract here.

Thanks for the link, very interesting!

And thank you Asian rich guys for dropping so much money on the Baccarat tables! Keeps the casinos off the back of us Blackjack players and might spare us from a concerted 6:5 and CSM conspiracy for another couple of years.

And one more thing: Why are Nevada GCB doing their reports with a typewriter?

Quote: Canyonero

And one more thing: Why are Nevada GCB doing their reports with a typewriter?

Hehe... It's not a typewriter, it's a state of the art (for 1981) dot matrix printer...

Quote: Boz

http://www.lvrj.com/business/nevada-casinos-lose-a-combined-1-21-billion-in-fiscal-2012-188054711.html

I would assume MGM and CZR were a most of this.

Doggone ..... I thought that $800 I left there would offset most of their losses.

Quote: Ayecarumba

Hehe... It's not a typewriter, it's a state of the art (for 1981) dot matrix printer...

Actually, it's a laser printer. However, the software is designed to use a simple dot matrix printer. (yeah, circa 1981). Often laser printers will default to Courier, which looks like a typewriter, when getting unformatted text.

Similarly, a PDF of such a report, will use Courier.

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Quote: Ayecarumba

I think Paco has stated in the past that the casino level details are closely held by the Gaming Board to prevent a specific joint from being easy to identify.

Looking at the numbers, though, it is amazing how Baccarat revenue dominates the Strip.

By Nevada law, the Gaming Board cannot reveal individual information. They must group casinos in such a way that not much can be inferred about an individual company. Other states freely point out revenue and profit numbers for individual casinos.

Since the losses for the Vegas Strip were $1.7 billion, and the losses for the state of Nevada $1.2 billion (i.e. Nevada netted a positive 1/2 billion excluding the strip). Combined with the fact that Wynn and Adelson didn't lose much money, you can infer that MGM and CZR recorded most of the losses.

Last year, of the 22 casinos that made over $72 million in gaming on the strip, only these 6 do not belong to MGM or CZR.
GOLD COAST HOTEL AND CASINO
PALACE STATION HOTEL & CASINO
PALMS CASINO RESORT
TREASURE ISLAND
VENETIAN CASINO RESORT
WYNN LAS VEGAS


This year there were 23 casinos in the over $72 million group on the strip. I'm guessing Hard Rock over Cosmopolitan , but right now I can't say for sure. Once they publish a data sheet that they are missing, I can back out the 23 casinos.

It is also possible that both Hard Rock and Cosmopolitan are now over $72 million, and another one like Rio fell below. Once a casino goes below $72 million they don't have to keep as much money in the cage.

There is also a new or returning casino from off strip that is making over $72 million. Possibly Rampart is returning to the list.


Baccarat Revenue is so dominant now, that you wonder who is driving the losses. In other words what costs more in overhead, a lot of low rollers walking around looking for free stuff, or the whales. I'm betting the whales are driving the losses. There is so much competition around the world for baccarat whales, that my guess is that it costs a fortune to lure them to Vegas in not only free stuff, but kickbacks on their losses.

Creative accounting to avoid paying taxes.

Quote: Ibeatyouraces

Damn those AP pests!

Don't shoot the messenger. :P

Quote: stargazer

Creative accounting to avoid paying taxes.

I think so, the smaller casinos in minor towns don't have revenue going up. But they cut costs until they make a profit. No accounting procedure that I am aware of lets you shuttle billions of dollars into a category called "other".

The per room-day food, beverage, and rate also improved from last year. For the top Strip casinos:

$83.84 - $91.02 - food
$36.21 - $42.41 - beverage
$130.58 - $143.56 - room rate

They did manage to lay off 5000 employees on the strip. I guess the improved financial pictures does not roll downhill.