Every two years, the Nevada Gaming Fact Book provides an overview of the resort and gaming industry across the state. The latest edition is like a Stephen King novel, chronicling the devastating effects the COVID-19 pandemic wrought on the Nevada’s main economic drivers.
But the grim statistics and figures in this year’s Fact Book don’t take into account the character and determination of Nevada’s gaming workers and operators.
“Despite the difficult year and ongoing impacts of the pandemic, Nevada’s resort industry remains responsive, resilient and adaptive,” said Ellen Whittemore, Chair of the Nevada Resort Association’s Board of Directors and Wynn Resorts Executive Vice President and General Counsel in a statement. “As the economic lifeblood of this state and largest employment sector, the resort industry is doing all it can to help Nevada’s economy recover and to bring more people back to work as soon as possible.”
Key findings in the 2021 Nevada Gaming Fact Book include:
- 300,700 workers are employed in the leisure and hospitality sectors, equivalent to 2010 levels.
- Industry-specific taxes dropped 29% in fiscal year 2020 and are down 60.4% for the first half of calendar year 2020 compared to the prior year.
- A decline in total gaming and nongaming revenue of 25.2% in 2020 from the prior fiscal year.
- A 21.7% decline in gaming revenue in 2020 from the prior fiscal year.
- A drop in visitors of 24.6% for 2020 from the prior fiscal year.
Whittemore said the decline in tax revenues from resort and gaming operators negatively affects funding for critical state and local services.
“Thousands of employees lost their jobs, and small businesses dependent on tourism closed as business and leisure travel evaporated,” Whittemore said.
The importance of the Nevada’s resort industry can’t be understated. According to the Fact Book, it contributed 33.8% of the state’s general fund revenue, generated $1.3 billion in industry-specific fees and taxes for the state, and accounted for 23.8% of Nevada’s total employment.
There are signs that some sectors of the gaming industry are rebounding. While revenues from the Las Vegas Strip declined 43.8% in January 2021 from the previous year as casinos statewide operated at 25% capacity limitations due to COVID-19 surges, parts of Northern Nevada and some rural areas were rebounding.
According to the Nevada Gaming Control Board, Washoe County, which includes Reno, saw a 4.9% gaming revenue increase while rural parts of the state experienced double-digit increases.
Virginia Valentine, president of the Nevada Resort Association, said there are reasons for optimism despite the Fact Book’s figures. She noted that vaccines are now available, the decline of current health metrics, and capacity limitations for businesses being eased.
