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LAS VEGAS-The amount people lose gambling continues to become less and less of the total revenue generated by gaming properties in Nevada, according to the fiscal year totals released this week by the Nevada Gaming Commission. The fiscal year runs June to July; it takes the commission several months to compile the dozens of reports it receives from companies with gaming operations in the state.
Gaming properties in the state generated $24 billion in revenue in fiscal year 2006. Of that total, 49% came from unlucky gamblers. In 2005, gambling wins accounted for about 50% of the total. In 2000, it was 53%. In 1990, it was more than 60%.
Making up the difference is revenue from hotel rooms, food and beverages. Frank Streshley, a senior analyst with the Gaming Commission tells GlobeSt.com that while FY06 gaming revenue was 10.8% higher than FY05, revenue from hotel room rentals grew by 14%, revenue from food sales was up 12.8% and revenue from beverage sales was up 12.2%. Revenue from "other" sources, which includes revenue generated by in-house spa facilities and renting retail space, was up 19.8%, Streshley says.
"Most of [the increase] is not being fueled by new capacity," he says. "It's just tremendous growth within existing properties that isn't being offset by the expense side."
Indeed, gaming properties in the state produced a combined net income of $2.11 billion in FY06, up 17% from FY05, according to the report.
Whether the trends will continue in FY07 remains to be seen. Streshley says that through the first five months of FY07 [July to November], there has been a slowing in gaming win. "We just reported a strong month [November], but the prior two months were pretty soft," he says. "We're not expecting a double-digit growth year."
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