Nevada Casinos in 2020: Revenue Tumble & Profits Rise in Fiscal
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According to CalvinAyre, casinos in Nevada generated less revenue compared to the previous year. However, most of the casinos in Nevada posted more profits in their 2020 fiscal year report. Nevertheless, it appears that the pandemic didn’t affect the casino in Nevada as expected.
The Nevada Gaming Control Board’s recent Gaming Abstract fiscal report for 2020 showed that all the casinos in Nevada generated combined revenue of $18.35b in twelve months ending on 30th June 2020. Could it be that the online industry contributed more?
Let’s take a comprehensive look at the Nevada casino industry development in 2020.
Nevada Casino Industry in 2020
Like most states in the US that legalized casinos, Nevada expected a better year for the industry. Based on the revenue generated in 2019, Nevada stakeholders expected 2020 to be a better year for casinos. However, that turned out to be a fallacy.
In 2020, for the first in more than 100 years, Nevada casinos were shut down and couldn’t operate. Even when the lockdown was lifted, casinos were not allowed to work. Casinos in Nevada had to operate under strict regulations after the government called off the lockdown.
Most of those restrictions are still enforced, e.g.:
Players must wear a face shield or mask before they gain entrance to the casino hall
No smoking or selling of alcoholic beverages
Casinos are to operate at 20 percent capacity
Casinos’ operations are time-bound, i.e., no more 24 hours operations.
Reopening the casinos after the lockdown couldn’t cushion the losses. The restrictions imposed by the government didn’t allow most regular gamblers to visit the casino. All the land-based casinos in Nevada were shut down for seventy-eight days.
The Online Casino Industry in Nevada
Online gambling is permitted in Nevada. The state of Nevada allows playing online poker games. However, no law expressly legalizes gambling at online casinos in the state. Nonetheless, this doesn’t mean that gamblers cannot play at online casinos.
Presently, Nevada doesn’t have a licensed online casino operating from their territory. This has not stopped citizens of the state from enjoying gaming at online casinos licensed in other jurisdictions. A few of the games provided by online casinos that accept players from Nevada are:
Most of the online casinos that accept Nevada players provide slots and bingo games on their website too.
The Nevada Gaming Control Board’s 2020 Fiscal Report
In 2019, the total revenue generated by casinos in Nevada was $24.55b. However, in the board’s fiscal report for 2020, casinos revenue dipped by one-quarter of the previous year. A breakdown of the gaming revenues of casinos in Nevada are as follows:
Slots: The slots revenues in 2020 dipped by 21.3 percent and generated $6.4 billion.
Table Games: Compared to slots, table games revenue dipped 24.5 percent compared to 2019.
Poker Games: Also, poker games generated $102 million. Compared to 2019, it reduced by minus 39.4 percent.
Furthermore, other aspects of gambling in the state also recorded losses. For instance, the racing wagered reduced by 31 percent and generated $29.7 million. Also, sports betting lost about 19.3 percent and generated $216.7 million. The report showed that the total revenue was down by $2.5 billion.
Overview of the Land-Based Nevada Casino Industry
In January 2021, the Nevada Gaming Control Board stated that there are 441 casinos in the state, including Las Vegas. The number of Nevada land-based casinos increased compared to three years ago, precisely 2017. This means that the state’s casino revenue will also skyrocket.
Poker or slot casinos at gas stations are not included in the 441 casinos operating in Nevada. For instance, if a gas station has two or three slots or video poker machines, it would not be counted as a casino. Only operators with fifteen slots or video machines are considered casinos.
Moreover, most of the casinos in Nevada are located in Las Vegas. Las Vegas has more than 40 percent of all the casinos in Nevada. Also, it is considered the most populous city in the state of Nevada. Some famous casinos such as Las Vegas Sands, MGM Grand Hotel and Casino, Flamingo Las Vegas, Paris Las Vegas, etc., are located in Las Vegas.
Will Nevada Casinos Revenue Bounce Back Again?
Considering that most of the casinos operating in Nevada are land-based, it might be challenging to earn more revenue in the future. The pandemic has made physical contact very difficult, and it is not going away anytime soon.
Finally, to generate more revenue from gambling, the casinos in Nevada need to embrace online gambling. Notwithstanding the various arguments, online gambling is the future. Right now, online gaming is gaining ground in so many countries.