2014 Nevada Casino Revenue drops by 1.1% to $11 billion

Nevada casino revenue dropped 1.1 percent to $11 billion in 2014, and it appears that a disappointing year for the Las Vegas Strip is what ultimately ensured the drop.

According to the Nevada Gaming Control Board, Strip casinos earned $6.4 billion in 2014, which is down 2.1 percent from the previous year. December was particularly rough for the Strip, as its collective revenue was down 16.4 percent to $555 million.

Interestingly enough, downtown Vegas, Laughlin and Reno all reported an earnings increase in December. All three of these areas rely more on pure gambling revenue than resort offerings to make money. Meanwhile, the Vegas Strip has evolved into an all-encoming entertainment destination, where drinks, food, hotel rooms and shows are heavy earners for these casinos.

While the Strip may not have had happy holidays, the state as a whole did quite well in December, pulling in $950.7 million – an 8 percent increase from the previous year. In turn, this enabled the Nevada government to collect 22.7 percent more taxes from casinos, a figure that was likely enhanced by casinos collecting on high-roller credit before the year ended.

In other positive news, the amount wagered in baccarat games was up again for the third straight year to $12.1 billion. Baccarat has proven to be a huge catalyst for casino destinations across the world in recent times, and Nevada doesn’t appear to be any different. The only downside, though, is that actual earnings from baccarat were down in 2014, showing that some high rollers may have gotten the best of the Silver State last year.

From an overall perspective, it’s at least encouraging that Nevada casino revenue has remained level. There was great concern in the late 2000s, during a big American recession that saw the casino industry take a huge downturn. However, the U.S. economy has rebounded along with Nevada casinos.

Ever since the recession, gaming establishments have worked hard to change their approach and diversify. This is especially the case on the Strip, where, as mentioned before, all-around entertainment has become a priority. Atlantic City, which has seen their revenue decrease for eight straight years, has taken notice of Vegas’ diversification efforts and is trying to do the same. However, Atlantic City still has a long road ahead before they can stabilize their gaming industry like Vegas/Nevada.