The lack of amenities due to pandemic restrictions, especially on the Las Vegas Strip, turned 2020’s nearly $3 billion profit into a $206 million loss. The Nevada Gaming Abstract 2021 looks at the 302 casinos generating $1 million or more in revenue, shows a net loss of $206.4 million, a massive drop from fiscal year 2020’s net income of $2.89 billion.

Gaming revenue, which year over year increased 25.3%, accounted for 52.4% of total revenue, up from last year’s 36.8%. Michael Lawton, a senior economic analyst with the state, said that it represents the highest percentage recorded since fiscal year 2000, when gaming represented 53% of total revenue. “As expected, gaming win increased across all areas of the state, and this was the result of limited entertainment options and stimulus (for consumers),” Lawton said.

That contrasts to total revenue generated in all casino departments at $16.1 billion compared to $18.3 billion last year – a 12.1% or a $2.2 billion decrease from the previous year. Rooms, food, beverage, and other departments (non-gaming revenues) accounted for 47.6% of total revenue, down from last year’s 63.2%. Overall, non-gaming revenues decreased $3.9 billion or 33.9%.
“Pandemic-related restrictions which limited restaurants, bars, entertainment offerings including showrooms, concerts, special events and nightclubs all played a large role in the decreases recorded to non-gaming revenue,” Lawton said. “Additionally, a lack of international travelers, convention attendees and the sluggish ramp up for leisure travel contributed to these results.”

Except for the Strip and Clark County, total revenues and net income across other submarkets increased. “This was driven by increases to gaming revenue which benefited from strong demand and stimulus,” Lawton stated. He added that the Strip’s gaming revenue accounted for 42.4% of statewide gaming revenues, below the 53.9% average over the prior ten years. "Excluding the Strip, statewide gaming revenue increased $1.51 billion or 45% compared to fiscal year 2020, while total revenues increased $1.18 billion or 19.1%."

With the addition of Circa in the fall of 2020, Downtown Las Vegas reported gaming revenue of $608.1 million, a gain of 39.4% and total revenues topped $1 billion. “Downtown has recorded net income in seven consecutive years after a streak of six consecutive net losses,” Lawton said.

As for the large credit balance in 2020, Lawton said the Strip recorded several large real estate sales in which several properties now lease the land and building from the new owner.