Vegas Strip Revenue
It is a great time to peek at Vegas Strip Revenue News. The annual Nevada Gaming Abstract is one of my favorite documents released by the Gaming Control Board. It covers all money casinos collect for the previous year.
Casino Accounting Only A Nerd Could Love
It’s an abundance of casino accounting that only a nerd could love. I’ve had the document open in a tab on my browser since it was released, and still haven’t gone through the entire document. I suspect some of you will dive into at least some of the 179-page report.
The information is fairly similar to previous years. There aren’t dramatic changes from year to year. However, when you compare the information to X years ago, you begin seeing trends on where Nevada casinos make money.
I tend to focus on one part of Las Vegas since most visitors stay at Vegas Strip casinos. There are a couple of items that aren’t new at all.
However, they still shock people when I share them. One trend continues to move towards the unexpected.
Much like casino earnings reports, knowing where the businesses make money gives us a better understanding of why they operate in certain ways.
Non-Gaming Revenue Crushes Gaming Revenue
I’ve had one bookmark on my various computers since I first saw it in 2013. I still reference the Business Insider article “Las Vegas Hasn’t Been About Gambling Since 1999” regularly.
1999 was the first year when non-gaming revenue exceeded gaming revenue at Vegas Strip casinos. While there have been some dips, the trend continues.
Gaming Abstract 2023
According to this year’s Gaming Abstract, 73.4% of revenue at casinos on the Vegas Strip was from sources other than gambling. Here’s the breakdown of revenue:
- Hotel rooms: 33%
- Gaming: 26.6%
- Food: 17.8%
- Beverage: 7.9%
- Other: 14.6%
More Money Spent On Hotel Rooms Than On Gambling
Last year, more money was spent on hotel rooms than on gambling.
The TravelZork community is made up of gamblers and reward enthusiasts so let’s break out some more information for Vegas Strip casinos that might be surprising.
Rooms paid for by cash account for 77.6% of room sales at these casinos. Complimentary room sales account for 24.7% of hotel room revenue. These casinos account -2.7% of room revenue to “Complimentary Expenses.”
Vegas Strip Casino Revenue – An Outlier For The Country
Vegas Strip casino revenue is an outlier for the country. Not all casinos generate money the same way as the Vegas Strip.
For comparison, downtown Las Vegas casino revenue is closer to a 50/50 split. The majority of these casinos are much older and don’t offer the same non-gaming experiences and amenities. That’s a plus for many visitors but not for everyone.
Generally, the revenue split in Nevada casinos continues to slide toward the way Vegas Strip casinos make money.
Sports Betting On The Vegas Strip
I’ve been betting on sports in some way for as long as I can remember. I’ve been covering the topic for casinos, mostly in Nevada, for nearly a decade in some way, shape, or form.
I’ve already shared that gaming accounts for 26.6% of overall casino revenue on the Vegas Strip.
Sports betting directly accounts for just 3% of that income.
I say directly because that’s money received specifically from betting on the games. If you follow sports betting in Las Vegas closely, you know that the wagers are only part of casino business models.
Unlike most cities and states in the country, sports betting in Las Vegas is also a catalyst for non-gaming revenue in casinos. Food, beverage, and to a lesser extent, hotel rooms all see revenue from sports fans and bettors.
Some sportsbooks are set up as bars and restaurants with a counter for wagers. This is an easy way to connect sports betting with food and beverage income for casinos.
Sportsbooks are the busiest for big games. It’s nearly impossible to find a seat in a Vegas Strip sportsbook for events like March Madness or the Super Bowl that doesn’t come with a fee.
Some sportsbook reservation fees include food and/or drink but others don’t. Always read the fine print because the fee could also be a minimum spend for food and beverages.
Parties to watch these events often include food and beverage for $150 or more. FYI, you can head off the strip for free or cheaper parties.
These are just a couple of the interesting items you’ll find in the Gaming Abstract.
Featured Image Credit: Emiliano Bar on Unsplash
