Nevada Evolves as Non-Gaming Revenue Skyrockets
LISTEN TO THIS ARTICLE:Las Vegas is shedding its "gambling mecca" reputation as tourists increasingly embrace the city's diverse offerings beyond the casino floor. While Nevada casinos saw healthy net income of $3.4 billion in fiscal year 2023, a shift is happening. Visitors are dedicating nearly three-quarters of their budgets to non-gaming experiences.
Nevada Continues to Evolve
The Nevada Gaming Control Board's latest report paints a clear picture. Nearly all areas across the state, excluding Carson Valley and smaller counties, enjoyed revenue increases. The Las Vegas Strip itself raked in a record-breaking $20.5 billion, an 11.6% jump from the previous year. Notably, non-gaming revenue soared to $15 billion, setting a new high.
Gambling might once have been king, but its reign seems to be nearing its end. Strip gaming revenue dipped to $5.5 billion, representing only 26.6% of total income, compared to 30.41% last year. This marks the 25th consecutive year where gambling brought in less than half of all revenue.
Related: Nevada Casinos Continue to Set New Revenue RecordsFor over two decades, non-gaming has been a major driver, fueling the Strip's transformation into a vibrant entertainment hub. From world-class shows and culinary experiences to diverse retail options, the city caters to a much wider audience than ever before.
Looking beyond the Strip, statewide gaming revenue saw a slight dip of 1% to $10.9 billion, though it still makes up 36.6% of the total. Meanwhile, non-gaming revenue continues its upward trajectory, hitting an all-time high of $18.9 billion. It's clear that visitors are embracing non-gaming options across the board, with room revenue jumping 17.9%, food sales rising 19.5%, and beverage revenue reaching a record $2.35 billion.
The Pandemic Recovery is Complete
The comparison to pre-pandemic times further underscores the shift. Compared to 2019, total statewide revenue has grown by $5.3 billion, with every market experiencing increases. Non-gaming has also seen consistent growth, rising by $3.16 billion, indicating a sustained preference for diverse experiences.
This positive trend extends to net income, which climbed by $1.38 billion, or 67.4%, compared to 2019. Every market, except Laughlin, saw improved net income, highlighting the industry's overall health. The number of locations generating at least $1 million in gaming revenue also increased slightly, demonstrating continued interest in gambling alongside the booming non-gaming sector.
Finally, employment across the industry saw a healthy 7.1% increase, rising from 133,412 in 2022 to 142,489 in 2023. This growth, exceeding even pre-pandemic levels, signals a positive trend for employment and economic development within the Nevada gaming industry.
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