Nevada casinos report $1.2 billion loss in fiscal year 2018
CARSON CITY, Nev. — The 289 non-restricted casino licensees in Nevada generated a record $27.1 billion in revenue in fiscal year 2018, which ended June 30.
That’s the eighth consecutive increase and the highest total ever for revenues from gaming, rooms, food, beverages and other sources, according to a comprehensive annual Gaming Abstract report released Feb. 6 by the Nevada Gaming Control Board. The total is 3.8 percent and $933.2 million above FY 2017’s annual revenue total.
However, Gaming Control Board Analyst Mike Lawton said the results were mixed because those same licensees also reported a net loss of $1.168 billion before federal income taxes and extraordinary expenses.
That net loss was reported in the “General and Administrative Expenses category,” which includes, among other things, taxes, payroll and benefits, utilities and depreciation, as well as one-time expenses resulting from, in this case, bankruptcies.
While Lawton was unable to be specific, the obvious answer is the recent reorganization of Caesars Entertainment after emerging from bankruptcy.
That bankruptcy resulted in a $2.7 billion swing from the $1.56 billion net income resorts reported in FY 2017.
While the vast majority of those costs were in Clark County, that total includes a $324 million net loss in the south shore Lake Tahoe reporting area (Caesars owns the Harrah’s and Harvey’s resorts there), a sharp reversal from the $27.2 million in net income that area reported a year ago.
Total revenue at Stateline’s seven licensees was $406.4 million, a $10.7 million, 2.7 percent increase. Gaming revenues grew by 1.8 percent and room revenues by 2.8 percent.
Total revenues at south shore are now up in four consecutive years after eight consecutive losses.
In the Carson Valley Area, which includes valley portions of Douglas County as well as the capital, 15 resorts generated $14.2 million in net income. That’s the area’s eighth consecutive year in the black.
Total revenue for Carson was $164.9 million, a 7.8 percent increase. Gaming revenue was up 7.5 percent to $107.2 million.
Washoe County’s 37 casinos reported $1.67 billion total revenues and net income of $97.4 million for the year
Statewide gaming revenue for those non-restricted licensees grew 4.4 percent in FY 2018 to $11.6 billion or 42.8 percent of total revenue. Gaming revenue has now increased in seven of the last eight years.
Revenues from food, beverages, rooms and other sources are all at record highs and account for 57.2 percent of total revenue.
The new owner of The Crossing at Tahoe Valley is Second Bay Holding Tahoe, LLC, based in Redwood City, Calif. The 46,041-square-foot center was originally constructed in 1973.