Nevada casinos break annual revenue record for third year straight with $15.5 billion, Strip dominates growth

Nevada's casinos achieved a new annual gaming revenue record for the third consecutive year, according to the state Gaming Control Board's announcement on Wednesday. State-wide, casinos amassed $15.5 billion in gaming revenue in 2023, marking a 4.6 percent increase from the previous year. Notably, Strip casinos reported a record-breaking $8.9 billion in revenue, reflecting a 7.4 percent surge and contributing over 57 percent to the state-wide total.

Historically, $12 billion in annual gaming revenue was standard for Nevada's casino industry until 2019. Following the pandemic-related closures in 2020, which led to a 34.6 percent annual revenue decline, the industry rebounded with $13.4 billion in 2021 and $14.8 billion in 2022.

December proved to be a milestone month, with state-wide casinos generating $1.43 billion in gaming revenue, marking a 9 percent increase from the previous year and setting a new single-month revenue record, surpassing the previous high of $1.4 billion in July. November secured its position as the state's third-highest gaming revenue month, with $1.37 billion.

Throughout 2023, casinos state-wide achieved revenue records in 9 out of the 12 months.

The Strip reported a single-month record of $909.6 million in gaming revenue for December, attributed to high-profile events such as the Formula One Las Vegas Grand Prix, the opening of the $2.3 billion Sphere, and the unveiling of the $3.7 billion Fontainebleau Las Vegas.

Las Vegas tourism exceeded 40.8 million visitors in 2023, slightly below the 2016 record of 42.9 million visitors. However, Harry Reid International Airport set a new passenger volume record, welcoming 57.6 million travelers, an increase of over 9 percent from the previous year.

Mike Lawton, the Control Board's senior economic analyst, emphasized the Strip's significant contribution to the state's overall revenue growth, accounting for 90.3 percent, The Nevada Independent reported. Excluding the Strip, state-wide gaming revenue would have increased by just 1 percent in 2023.

Several markets, including Downtown resorts, Las Vegas local casinos, Mesquite, Sparks, Elko County, West Wendover, and the balance of Elko County, also set new yearly gaming revenue records.

December's revenue resulted in $84.9 million in gaming tax collections, marking a nearly 27.3 percent increase from the previous year. Through the first seven months of the fiscal year, cumulative gaming tax collections reached $584.9 million, up almost 6.2 percent from the same period in the previous fiscal year.

While December's figures alleviated concerns in the investment community, Caesars Entertainment anticipated a fourth-quarter net loss due to results from its Strip resorts. “Strip results are solid, despite some mixed commentary from Caesars,” Truist Securities gaming analyst Barry Jonas wrote in a research note, retried by The Nevada Independent.

Nevada sportsbooks collected a single-year record of $481.3 million in gaming revenue in 2023, up 7.7 percent from the previous year, despite a 5.1 percent decline in handle to $8.3 billion. Mobile sports betting accounted for 65.8 percent of all wagers.