Nevada’s largest casino loses $6.8 billion

Nevada’s highest-grossing casino posted a net loss of nearly $6.8 billion in fiscal 2009, hurt by lower gaming revenue, lower hotel rates and lower consumer spending.

The Game Control Board, which released a Game Green earnings statement on Friday, said the net loss was the largest in Nevada. 파친코

The last loss came in 2002, shortly after the Sept. 11 terrorist attacks in which casinos lost $33.5 million, said Frank Striesley, head of the gaming commission’s tax and licensing division.

Green is a profitability measure combining financial information from 260 Nevada game licensees who earned more than $1 million from casino revenue during the fiscal year ended June 30.

The casino posted a net loss of $6.778 billion, driven by revenue totaling more than $22 billion. Gross revenue includes money spent by customers on games, hotel rooms, food, beverages and other attractions.

Net income or loss is money held in casinos after expenses are paid, but before deducting federal income tax and before accounting for other expenses.

Streshley said the fiscal record for casino revenue was $2.297 billion in 2007. As the U.S. and Nevada economies began to sink in fiscal 2008, the abstract casinos recorded $721 million in revenue.

Nevada casinos paid $778.7 million in state gambling taxes and fees, accounting for 7.4% of gambling income.

Streshley said fiscal 2009 covers the last half of 2008 and the first half of 2009, with statewide monthly gaming revenue falling by double digits in nine out of 12 months.

“This period covered two of the most challenging periods the gaming industry has ever experienced,” Streshley said.

Total revenue of $22 billion during the fiscal year was down 12% from fiscal 2008, when six more casinos had gaming revenue of $1 million or more.

Comparing the two fiscal years, gaming sales fell 12.7%, hotel room sales fell 16.6%, restaurant sales fell 9.3%, and sales in other areas such as retail, spa and other amenities fell 9.6%.

Strelly said the problem was that the drop in hotel revenue came from two aspects: lower room rates and lower guests.

The abstract shows casino customers in Nevada are not spending as they have in the past, he said. Losses for the fiscal year were not entirely cash.

While casino companies have more than $5 billion in non-cash amortization or impairment costs on their operations, bad debt costs increased by 125.6%. Stresley said these amortizations increased general and administrative costs by 241%.

In fiscal 2009, gaming revenue amounted to $10.5 billion, or 47.8 percent of total casino revenue. The 260 casinos included in the report paid $778.7 million in gaming taxes and fees, or 7.4 percent of gaming revenue.

Clark County saw 149 casinos generate more than $1 million in gaming revenue during fiscal 2009, resulting in a net loss of $6.5 billion from $19.2 billion in total revenue. Washoe County had 32 casinos in fiscal 2009, which totaled $47.4 million from about $1.6 billion in total revenue.

In fiscal 2009, 71 publicly owned casinos earned $12 million or more in gaming revenue. Casinos owned by 20 publicly traded companies accounted for 77.8% of total gaming revenue generated statewide during the fiscal year.

Related Posts

1 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *