Nevada Gaming: Assets, Liabilities and Expenses, 1984-2017 Statewide Casinos’ Revenue, Liabilities, Assets, and Selected Expenses Financial structures in Nevada’s gaming industry have shifted tremendously over the past decade. These changes, which center on the assumption of unprecedented levels of debt by casino operators, are amply reflected in several key metrics for the industry, chiefly the rising level of liabilities.
Executive Summary
Nevada gaming is in an unprecedented financial position. The total assets of Nevada casino operators have increased dramatically since 1999, but so have the total liabilities, which now eclipse total annual revenues. Until roughly 2007, annual casino revenues (including both gaming and non-gaming departments) remained well above Nevada casinos’ total liabilities; since then, liabilities have well outstripped annual revenues.
Definitions • • •
For all reporting areas, each year’s data is for the fiscal year (July-June) in question. All data is for all Nevada casinos with gross gaming revenues of more than $1,000,000 per year. Unless otherwise specified, all totals are in dollars.
Jump to: Total Assets vs. Total Liabilities Assets vs. Liabilities: Selected Detail Revenues vs. Liabilities, 1984-2017 Revenue and Net Income (Loss) Before Federal Income Taxes General & Administrative Expenses: Selected Detail Long-term Debt & Interest vs. Revenues Long-term Debt & Interest as Percentages of Revenue Total General & Administrative Expenses vs. Revenues Interest Expense as a Share of Total Revenues
University Libraries
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University of Nevada, Las Vegas
Total Assets vs. Total Liabilities, 1984-2017
100,000,000,000 90,000,000,000 80,000,000,000 70,000,000,000 60,000,000,000 50,000,000,000 40,000,000,000 30,000,000,000 20,000,000,000 10,000,000,000
1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
0
Total Assets
Total Liabilities
As can be seen in this chart, the total assets of Nevada casino operators have increased dramatically since 1999, but so have the total liabilities.
University Libraries
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University of Nevada, Las Vegas
Assets vs. Liabilities: Selected Detail
1984
Current Assets 712,349,030
Fixed Assets 3,235,132,064
Total Assets 4,752,459,843
Current Liabilities 773,362,442
Long-term Debt 1,636,358,129
Total Liabilities 2,740,146,043
Total Capital 2,012,313,798
1985
821,752,709
3,377,981,300
4,871,693,157
921,237,441
1,492,910,869
2,860,243,858
2,011,449,299
1986
804,765,385
3,804,324,474
5,161,496,611
750,474,125
1,815,427,533
3,129,323,742
2,032,173,095
1987
963,996,719
4,178,985,844
5,803,453,493
821,931,827
1,975,510,877
3,296,993,658
2,506,459,835
1988
1,126,396,466
4,543,073,163
6,137,800,288
932,341,609
2,244,549,891
3,633,464,563
2,504,335,722
1989
1,424,252,146
5,246,642,916
7,290,841,684
1,388,995,604
2,917,059,001
4,815,453,889
2,476,387,797
1990
1,531,642,895
6,927,451,395
9,081,396,562
1,693,801,086
3,666,805,057
5,998,000,912
3,083,395,650
1991
1,517,719,142
7,132,944,939
9,090,648,073
1,778,584,888
3,200,708,339
5,748,703,777
3,341,944,296
1992
1,467,654,130
6,954,061,459
9,074,399,309
1,631,111,600
3,606,143,801
6,154,311,911
2,920,087,398
1993
1,655,589,174
6,813,800,852
8,966,629,957
1,716,047,918
2,505,046,790
4,894,009,399
4,072,620,558
1994
2,032,686,321
8,967,405,741
11,792,244,170
2,077,162,110
3,713,114,919
6,494,655,825
5,297,588,345
1995
1,972,957,785
9,850,267,713
13,260,958,659
2,087,644,964
3,229,279,677
6,355,063,164
6,905,895,495
1996
2,546,009,864
11,570,661,834
15,531,871,615
2,553,029,663
3,826,334,355
7,137,527,462
8,394,344,153
1997
2,662,314,052
12,461,815,069
16,484,545,247
2,728,304,077
3,818,611,954
7,307,743,350
9,176,801,897
1998
2,404,416,823
13,913,005,089
17,726,478,660
2,889,347,005
3,911,358,504
7,733,267,615
9,993,211,045
1999
2,648,254,415
17,289,789,573
21,877,261,809
3,565,297,933
7,766,702,254
12,554,233,446
9,323,028,363
2000
3,960,460,169
22,181,328,304
28,391,769,057
2,938,514,338
10,426,982,161
14,969,827,153
13,421,941,904
2001
3,879,782,496
22,742,409,382
29,030,881,849
3,049,670,794
10,257,097,014
14,725,959,270
14,310,806,149
2002
4,306,603,950
22,305,070,386
29,121,833,323
2,199,427,518
10,468,112,861
14,289,494,689
14,832,338,634
2003
5,164,661,520
22,529,311,629
29,840,027,844
3,282,379,193
9,457,731,576
13,791,229,248
16,051,577,147
2004
5,858,589,292
23,533,171,155
32,931,257,259
3,270,609,465
9,500,802,461
14,578,884,375
18,352,372,183
2005
6,188,272,138
27,015,191,851
38,723,922,615
3,249,460,095
11,689,478,338
16,236,460,075
22,487,462,449
2006
4,166,898,002
34,695,441,410
46,852,345,328
7,203,327,483
14,038,984,422
22,120,546,357
24,721,798,971
2007
6,067,670,104
36,208,611,857
51,649,483,435
6,878,742,077
17,075,978,487
24,115,697,094
27,533,786,341
2008
9,122,051,471
42,211,055,838
67,174,392,544
11,465,622,652
28,369,612,338
44,155,706,178
23,018,876,366
2009
12,736,725,278
43,852,012,237
68,086,248,630
7,070,677,278
27,709,457,292
40,663,344,674
27,422,903,659
2010
18,090,663,773
48,532,422,911
76,218,009,094
13,837,708,124
23,943,880,411
51,518,982,771
24,699,026,323
2011
17,785,177,829
47,705,345,176
75,156,678,597
13,917,666,909
24,476,978,831
51,186,896,606
23,969,781,991
2012
22,516,705,703
46,698,771,974
78,152,178,640
16,683,058,295
24,788,523,255
51,705,849,031
26,446,329,609
2013
15,725,833,499
45,214,159,857
67,351,224,943
10,557,447,454
24,573,647,669
45,568,541,654
21,782,683,289
2014
29,591,815,278
44,229,111,306
77,792,937,770
21,318,912,559
27,898,566,579
59,632,982,462
18,159,955,308
2015
33,291,668,220
38,628,326,099
78,082,496,970
24,197,329,047
15,869,888,592
2016
63,077,165,743
15,005,331,227
39,235,765,369
2017
44,501,678,503
42,087,657,453 42,042,144,971
89,554,898,377 95,530,095,807
29,150,915,562 33,044,740,180
16,496,099,606 16,949,481,264
68,093,943,050 72,015,340,012
21,460,955,327 23,514,755,795
University Libraries
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University of Nevada, Las Vegas
Revenues vs. Liabilities, 1984-2017 80,000,000,000
70,000,000,000
60,000,000,000
50,000,000,000
40,000,000,000
30,000,000,000
20,000,000,000
10,000,000,000
0
19841986198819901992199419961998200020022004200620082010201220142016 Revenues
Liabilities
Until roughly 2007, annual casino revenues (including both gaming and non-gaming departments) remained above Nevada casinos’ total liabilities. Since then, however, liabilities have well outstripped annual revenues.
University Libraries
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University of Nevada, Las Vegas
Revenues vs. Liabilities, 1984-2017
1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
University Libraries
Revenues 4,747,859,121 5,044,909,140 5,336,247,521 6,043,236,170 6,713,408,549 7,305,791,011 8,078,237,695 9,017,189,281 9,153,639,943 9,621,159,445 10,896,831,724 11,995,427,043 12,803,935,103 13,285,436,601 13,877,205,552 15,392,398,656 17,557,300,288 18,103,412,133 17,301,845,037 17,978,152,097 19,586,102,450 21,356,201,433 24,081,107,436 25,257,027,359 25,004,824,049 22,011,364,912 20,853,560,968 22,012,064,316 22,976,587,493 23,075,800,492 23,895,954,169 24,591,388,351 25,234,888,987 26,174,699,272
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Liabilities 2,740,146,043 2,860,243,858 3,129,323,742 3,296,993,658 3,633,464,563 4,815,453,889 5,998,000,912 5,748,703,777 6,154,311,911 4,894,009,399 6,494,655,825 6,355,063,164 7,137,527,462 7,307,743,350 7,733,267,615 12,554,233,446 14,969,827,153 14,725,959,270 14,289,494,689 13,791,229,248 14,578,884,375 16,236,460,075 22,120,546,357 24,115,697,094 44,155,706,178 40,663,344,674 51,518,982,771 51,186,896,606 51,705,849,031 45,568,541,654 59,632,982,462 63,077,165,743 68,093,943,050 72,015,340,012
University of Nevada, Las Vegas
Revenue and Net Income before FIT
1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
University Libraries
Total Revenue 4,747,859,121 5,044,909,140 5,336,247,521 6,043,236,170 6,713,408,549 7,305,791,011 8,078,237,695 9,017,189,281 9,153,639,943 9,621,159,445 10,896,831,724 11,995,427,043 12,803,935,103 13,285,436,601 13,877,205,552 15,392,398,656 17,557,300,288 18,103,412,133 17,301,845,037 17,978,152,097 19,586,102,450 21,356,201,433 24,081,107,436 25,257,027,359 25,004,824,049 22,011,364,912 20,853,560,968 22,012,064,316 22,976,587,493 23,075,800,492 23,895,954,169 24,591,388,351 25,234,888,987 26,174,699,272
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NI before FIT 332,734,863 434,233,222 435,207,302 648,293,774 689,218,304 664,451,575 648,190,720 545,907,955 848,606,217 1,146,090,269 1,209,906,411 1,276,794,091 1,355,497,949 1,101,742,970 1,134,328,500 876,587,138 496,841,799 554,428,461 -33,541,881 845,391,717 1,325,046,548 1,803,736,903 2,110,643,824 2,297,481,525 721,181,848 -6,778,293,613 -3,432,514,103 -3,996,656,422 -1,212,990,361 -1,348,992,937 -743,688,008 -661,779,138 978,956,175 1,557,358,386
University of Nevada, Las Vegas
General & Administrative Expenses: Selected Detail 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Dep-Build 85,557,204 101,906,703 104,362,383 122,967,130 147,136,058 140,681,105 166,805,010 214,819,904 218,164,102 194,065,456 241,057,636 272,806,550 316,916,544 361,122,565 373,112,273 435,511,772 482,413,119 504,764,608 527,190,284 551,753,332 622,664,024 612,501,624 679,639,191 735,999,155 833,308,813 841,353,106 1,030,096,535 1,021,807,307 964,194,112 1,289,096,973 1,025,245,579 1,053,571,920 1,102,578,666 1,099,795,233
D &A-Other 149,092,924 157,402,499 183,707,613 199,941,414 214,425,202 258,157,736 298,816,260 345,339,930 347,101,291 355,193,384 406,890,806 460,247,746 491,857,167 564,867,775 620,168,588 677,043,497 843,806,913 893,418,297 887,155,559 833,826,925 782,375,192 898,563,892 1,052,624,356 1,067,034,977 1,281,351,593 1,497,071,913 1,458,839,750 1,544,949,840 1,450,274,018 1,083,956,519 1,183,695,533 1,076,385,005 1,188,860,109 1,134,917,574
University Libraries
Total D&A 234,650,128 259,309,202 288,069,996 322,908,544 361,561,260 398,838,841 465,621,270 560,159,834 565,265,393 549,258,840 647,948,442 733,054,296 808,773,711 925,990,340 993,280,861 1,112,555,269 1,326,220,032 1,398,182,905 1,414,345,843 1,385,580,257 1,405,039,216 1,511,065,516 1,732,263,547 1,803,034,132 2,114,660,406 2,338,425,019 2,488,936,285 2,566,757,147 2,414,468,130 2,373,053,492 2,208,941,112 2,129,956,925 2,291,438,775 2,234,712,807
Interest 204,117,033 198,300,974 229,263,792 225,968,188 266,544,673 341,724,743 438,020,841 480,897,679 420,537,702 293,134,673 317,560,633 364,115,024 341,719,318 340,495,258 355,016,030 726,490,641 1,103,493,878 1,417,991,135 1,188,124,549 1,107,657,101 1,157,878,424 1,187,086,239 1,604,545,938 1,678,149,046 2,115,571,482 2,727,968,923 2,676.024,160 3,007,197,013 2,991,566,001 2,932,769,643 2,849,893,906 2,316,881,243 1,853,187,438 1,637,537,341
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Other 205,499,025 215,132,814 247,524,688 327,404,375 357,890,182 378,027,316 407,693,740 492,869,724 470,015,620 485,654,001 619,051,103 621,630,412 686,353,801 848,838,253 736,926,026 920,715,360 1,261,548,953 1,030,103,785 1,398,962,375 1,068,074,897 1,320,170,396 1,380,964,187 1,608,511,426 1,568,764,555 1,996,565,129 6,808,210,384 2,773,112,695 3,396,732,518 1,331,588,473 1,808,386,466 1,821,583,720 2,541,437,521 2,103,628,606 2,630,733,376
Total G&A 1,659,628,218 1,708,224,738 1,850,420,175 2,051,933,727 2,264,858,813 2,448,736,107 2,706,480,355 3,054,258,163 2,977,410,799 2,932,798,403 3,321,729,020 3,620,315,345 3,890,152,021 4,267,791,374 4,280,638,095 5,182,092,784 6,567,298,320 6,827,152,666 7,001,423,019 6,646,523,901 7,062,701,442 7,583,636,578 8,469,265,843 8,658,521,898 10,061,731,907 15,453,284,434 11,467,783,408 12,587,135,512 10,278,702,854 10,582,489,865 10,523,110,523 10,799,465,150 9,968,449,908 10,227,003,577
NI before FIT 332,734,863 434,233,222 435,207,302 648,293,774 689,218,304 664,451,575 648,190,720 545,907,955 848,606,217 1,146,090,269 1,209,906,411 1,276,794,091 1,355,497,949 1,101,742,970 1,134,328,500 876,587,138 496,841,799 554,428,461 (33,541,881) 845,391,717 1,325,046,548 1,803,736,903 2,110,643,824 2,297,481,525 721,181,848 (6,778,293,613) (3,432,514,103) (3,996,656,422) (1,212,990,361) (1,348,992,937) (743,688,008) (661,779,138) 978,956,175 1,557,358,386
University of Nevada, Las Vegas
Long-term Debt & Interest vs. Revenues, 1984-2017
1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Long-term debt 1,636,358,129 1,492,910,869 1,815,427,533 1,975,510,877 2,244,549,891 2,917,059,001 3,666,805,057 3,200,708,339 3,606,143,801 2,505,046,790 3,713,114,919 3,229,279,677 3,826,334,355 3,818,611,954 3,911,358,504 7,766,702,254 10,426,982,161 10,257,097,014 10,468,112,861 9,457,731,576 9,500,802,461 11,689,478,338 14,038,984,422 17,075,978,487 28,369,612,338 27,709,457,292 23,943,880,411 24,476,978,831 24,788,523,255 24,573,647,669 27,898,566,579 17,846,650,698 16,496,099,606 16,949,481,264
Interest 204,117,033 198,300,974 229,263,792 225,968,188 266,544,673 341,724,743 438,020,841 480,897,679 420,537,702 293,134,673 317,560,633 364,115,024 341,719,318 340,495,258 355,016,030 726,490,641 1,103,493,878 1,417,991,135 1,188,124,549 1,107,657,101 1,157,878,424 1,187,086,239 1,604,545,938 1,678,149,046 2,115,571,482 2,727,968,923 2,676,024,160 3,007,197,013 2,991,566,001 2,932,769,643 2,849,893,906 2,316,881,243 1,853,187,438 1,637,537,341
Revenues 4,747,859,121 5,044,909,140 5,336,247,521 6,043,236,170 6,713,408,549 7,305,791,011 8,078,237,695 9,017,189,281 9,153,639,943 9,621,159,445 10,896,831,724 11,995,427,043 12,803,935,103 13,285,436,601 13,877,205,552 15,392,398,656 17,557,300,288 18,103,412,133 17,301,845,037 17,978,152,097 19,586,102,450 21,356,201,433 24,081,107,436 25,257,027,359 25,004,824,049 22,011,364,912 20,853,560,968 22,012,064,316 22,976,587,493 23,075,800,492 23,895,954,169 24,591,388,351 25,234,888,987 26,174,699,272
While revenues have increased in the past (at the rate of 451% since 1984), Long-term debt has risen at a much greater rate (936%), which has led to a corresponding rise in interest payments. University Libraries
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University of Nevada, Las Vegas
Long-term Debt & Interest as Percentages of Revenue 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Long-term Debt 34.47% 29.59% 34.02% 32.69% 33.43% 39.93% 45.39% 35.50% 39.40% 26.04% 34.08% 26.92% 29.88% 28.74% 28.19% 50.46% 59.39% 56.66% 60.50% 52.61% 48.51% 54.74% 58.30% 67.61% 113.46% 125.89% 114.82% 111.20% 107.89% 106.49% 116.75% 72.57% 65.37% 64.76%
Interest 4.30% 3.93% 4.30% 3.74% 3.97% 4.68% 5.42% 5.33% 4.59% 3.05% 2.91% 3.04% 2.67% 2.56% 2.56% 4.72% 6.29% 7.83% 6.87% 6.16% 5.91% 5.56% 6.66% 6.64% 8.46% 12.39% 12.83% 13.66% 13.02% 12.71% 11.93% 9.42% 7.34% 6.26%
As casinos’ long-term debt has grown, the percentage of casino revenues dedicated to interest payments has risen as well. From 2008 to 2014, casinos owed more in long-term debt than they earned, collectively, in a single year. University Libraries
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University of Nevada, Las Vegas
Total General & Administrative Expenses vs. Revenues
1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total G&A Expenses 1,659,628,218 1,708,224,738 1,850,420,175 2,051,933,727 2,264,858,813 2,448,736,107 2,706,480,355 3,054,258,163 2,977,410,799 2,932,798,403 3,321,729,020 3,620,315,345 3,890,152,021 4,267,791,374 4,280,638,095 5,182,092,784 6,567,298,320 6,827,152,666 7,001,423,019 6,646,523,901 7,062,701,442 7,583,636,578 8,469,265,843 8,658,521,898 10,061,731,907 15,453,284,434 11,467,783,408 12,587,135,512 10,278,702,854 10,582,489,865 10,523,110,523 10,799,465,150 9,968,449,908 10,227,003,577
Revenues 4,747,859,121 5,044,909,140 5,336,247,521 6,043,236,170 6,713,408,549 7,305,791,011 8,078,237,695 9,017,189,281 9,153,639,943 9,621,159,445 10,896,831,724 11,995,427,043 12,803,935,103 13,285,436,601 13,877,205,552 15,392,398,656 17,557,300,288 18,103,412,133 17,301,845,037 17,978,152,097 19,586,102,450 21,356,201,433 24,081,107,436 25,257,027,359 25,004,824,049 22,011,364,912 20,853,560,968 22,012,064,316 22,976,587,493 23,075,800,492 23,895,954,169 24,591,388,351 25,234,888,987 26,174,699,272
% 34.96% 33.86% 34.68% 33.95% 33.74% 33.52% 33.50% 33.87% 32.53% 30.48% 30.48% 30.18% 30.38% 32.12% 30.85% 33.67% 37.40% 37.71% 40.47% 36.97% 36.06% 35.51% 35.17% 34.28% 40.24% 70.21% 54.99% 57.18% 44.74% 45.86% 44.04% 43.92% 39.50% 39.07%
How do rising interest payments, write-downs, and other expenses impact casino financial results? The percentage of casino revenues consumed by general and administrative expenses has risen alarmingly since fiscal 2008; from 2009 to 2011, it represented over half of all state casino resort revenues. University Libraries
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University of Nevada, Las Vegas
Interest vs. Revenues, 1984-2017 30,000,000,000
25,000,000,000
20,000,000,000
15,000,000,000
10,000,000,000
5,000,000,000
0
1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Interest
Revenues
Preferred citation: David G. Schwartz and Riva Churchill. Nevada Gaming: Assets. Liabilities, and Expenses, 1984-2017. Las Vegas: Center for Gaming Research, University Libraries, University of Nevada Las Vegas, 2018.
For more information about this report or the Center for Gaming Research, contact: Dr. David G. Schwartz, Director | ph (702) 895-2242 |
[email protected]
University Libraries
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University of Nevada, Las Vegas
