Gaming profits down in last fiscal year

Wednesday, Feb. 18, 1998 | 11:01 a.m.

CARSON CITY -- Gambling profits dropped in the last fiscal year, with the 19 major casinos in downtown Las Vegas sustaining the biggest decline.

The Gaming Control Board today released its annual "gaming abstract" for fiscal 1997. The 235 major casinos statewide earned $1.1 billion before federal taxes and expenses, for an 8.3 percent return or profit.

Russell Guindon, research analyst for the board, said the earnings dropped 18.7 percent from the $1.4 billion in 1996, for the first decline since 1991. Reasons listed included higher expenses on such things as wages, complementary rooms and meals, and promotions.

Despite the Fremont Street Experience, the casinos in downtown Las Vegas posted a fiscal loss of $49.7 million, or a minus 4.3 percent. Last fiscal year, the clubs had registered a $20.4 million profit or a 2 percent return.

The 21 big Strip casinos that each took in $72 million or more in gross gaming win for the year, earned $909 million or 14.1 percent profit. That's down from the $981.8 million in profits from fiscal 1996 when the clubs had a healthy 16.2 percent return.

But the 15 smaller casinos along the Strip posted a combined loss of $2.6 million for a minus 4 percent return. There were no figures for these clubs in past years because they were broken down in different categories.

This report, available for $15 from the board, is the only indication of how profitable the industry is and the best areas. There is no breakdown of the individual casinos.

The 22 properties on Boulder Highway registered a combined profit of $58.4 million or an 11 percent return. That's just $200,000 higher than in 1996 when the profit margin was 12.1 percent.

While the 10 clubs in Laughlin have seen a decline in their overall gross revenue, they still earned $56.6 million or a 7.5 percent rate of return. That's down from the $84.4 million and 10.6 percent return in 1996.