Nevada casinos report net loss in 2018
Last week, the poker capital of the USA, Nevada, reported that the state’s casinos have earned $27.1 billion in revenue in the 2018 fiscal year, ending 30th June 2018. The Nevada Gaming Control Board released its annual ‘Gaming Abstract’ report which states that the 289 Nevada casinos who possess the non-restricted gaming license have 'generated a net loss of $1,168,224,369 from total revenues of $27,107,879,852'.
The loss was a result of casino spending on 'gaming rooms, food beverage, and other attractions', the report says. In all, the casino expenses resulted in a nearly $1.17 billion loss 'prior to deducting federal income taxes and prior to accounting for extraordinary expenses'.
Compared to the previous year FY 2017’s numbers, the state’s casinos made almost $26.2 billion in revenues and made a net income of $1.58 billion following some tertiary expenses. A reputed news outlet noted that the loss was 'driven by expenses associated with the reorganization of Caesars Entertainment after exiting bankruptcy'.
However, Gaming Control Board’s Analyst Mike Lawton said that the results were mixed and inconclusive since those same licensees also reported a net loss of $1.168 billion before federal income taxes and extraordinary expenses. Lawton said, “A large company… experienced a very large amount of reorganization expenses due to their exit from bankruptcy.”
He was talking about Caesars. The bankruptcy had resulted in $2.7 billion swing from the $1.56 billion net income from 2017. Majority of those costs were in Clark County, including south shore of Lake Tahoe, where Caesars owns Harrah’s and Harvey’s.
Lawton lastly gave some uplifting news saying, “The good news is those are one-time charges, they are not recurring expenses. So, if things keep going as they are, we shouldn’t see such a substantial net loss recorded next fiscal year.”
Overall, 61 casinos made more than 3/4th of the total revenue in Nevada. The famous Las Vegas Strip brought $18.3 billion in revenue alone. Reno, capital of Nevada, saw its casinos make $1.5 billion in total revenue, just above Downtown Las Vegas with $1.26 billion.
Even though the casinos ended the year with net loss, overall, the state generated 7.5 percent of gaming revenue in taxes, which go to nearly $875 million. Keep reading GutshotMagazine.com for more such industry news from around the world.
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