Las Vegas Strip Casino Revenue and Market Trends
The financial landscape of the Las Vegas Strip is a complex ecosystem where gaming revenue—the money earned from gambling activities—competes with non-gaming revenue from hotels, dining, and entertainment. While the Strip remains the global epicenter of gambling, the sources of its wealth have shifted significantly over the decades, moving from a reliance on the casino floor to a diversified luxury resort model.
Key Facts
- Slots are the primary driver of gaming revenue, generating over $3.5 billion during the 2007 peak.
- Baccarat surpassed Twenty-One (Blackjack) in revenue for the first time in the year ending August 2009.
- 99.2% of all Baccarat revenue in the state of Nevada is generated specifically on the Strip.
- Non-gaming revenue (rooms, food, and beverage) has now surpassed gaming revenue for the Las Vegas Strip.
- The Nevada Gaming Commission (NGC) uses a threshold of $72 million per year (or $200,000 per day) to group high-earning casinos for reporting.
Gaming Revenue Breakdown
Gaming revenue is typically split between slots (electronic gaming machines) and pit revenue (table games). The "Other-PIT" category encompasses a wide variety of games, including Bingo, Keno, Let it Ride, Mini-Baccarat, Pai-Gow Poker, 3-Card Poker, Caribbean Stud, and Sports and Racing Books.
Comparing the peak year ending October 2007 to November 2009 reveals a general decline in gaming earnings across most categories.
| Game Category | Revenue (Oct 2007) | Revenue (Nov 2009) |
|---|---|---|
| Slots | $3,513,608 | $2,815,438 |
| Baccarat | $970,726 | $891,597 |
| Twenty-One | $1,078,626 | $741,594 |
| Roulette | $303,385 | $260,515 |
| Craps | $318,855 | $251,635 |
| Other-PIT | $663,137 | $475,885 |
| Poker | $97,114 | $85,596 |
| Total | $6,945,451 | $5,522,260 |
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Corporate Performance and Market Distribution
The market is dominated by large corporate entities. In the first quarter of 2009, MGM Mirage and Harrah's Entertainment reported daily gaming revenues of $5.9 million and $4.1 million, respectively. However, these figures represent the combined totals of all their Strip properties, not single casinos.
There is a stark difference in how these companies generate wealth. Harrah's earns approximately 54% of its revenue from casinos, whereas MGM Mirage earns 38% from the casino floor (before promotional allowances), indicating a heavier reliance on non-gaming amenities.
Top Performing MGM Properties (2009)
Based on 2009 data, the Bellagio remained the top earner for MGM, followed by the MGM Grand and Mandalay Bay.
- Bellagio: $1,064,729
- MGM Grand LV: $976,261
- Mandalay Bay: $725,129
- The Mirage: $624,132
The North Strip and Development Challenges
The North Strip—the first mile of Las Vegas Blvd. outside city limits in Winchester, Nevada—has historically served as a budget-friendly district. This area includes resorts such as the Sahara, Circus Circus, and the Riviera. Collectively, these properties maintain fewer than 200 table games and 4,200 slots.
Ambitious plans to transform the North Strip into an upscale district led to billions in land speculation and the implosion of the Stardust and New Frontier. However, many of these projects, including the Fontainebleau Resort and Echelon Place, faced bankruptcy or remained incomplete. The Echelon property was eventually sold to Genting, with plans for the Chinese-themed Resorts World Hotel and Casino.
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Evolution of the Resort Model
The economic model of the Strip has evolved since the opening of The Mirage in 1990. In the early 90s, room sales barely exceeded expenses and complimentary rooms, and food and beverage services were often sold at a loss. By 2008, room sales far exceeded expenses, and food and beverage cash sales began to cover their own raw costs and departmental expenses.
This shift highlights the transition from the "loss leader" model—where rooms and food were cheap to lure gamblers to the tables—to a high-margin luxury hospitality model.
Frequently Asked Questions
Which game generates the most revenue on the Las Vegas Strip?
Slot machines are by far the largest source of gaming revenue, generating billions of dollars annually, significantly more than any single table game.
How does Baccarat compare to Blackjack (Twenty-One)?
While Twenty-One was historically more lucrative, the year ending August 2009 marked the first time Baccarat generated higher revenue than Twenty-One. Additionally, the vast majority (99.2%) of the state's Baccarat revenue comes from the Strip.
What is the "$72 million" threshold used by the Nevada Gaming Commission?
The NGC uses $72 million in annual gaming revenue (approximately $200,000 per day) as a benchmark to group and report on the highest-earning casinos.
Is the revenue mentioned in movies like Ocean's Thirteen accurate?
Generally, no. While the movie suggests single casinos can earn $3 million to $5 million a day from the floor, real-world data shows that such figures are only achieved by combining all properties of a major corporation (like MGM Mirage) rather than by a single casino operation.
What happened to the North Strip redevelopment projects?
Many high-profile projects, such as the Fontainebleau and Echelon Place, suffered from bankruptcy or were left incomplete due to economic downturns, though some land was later repurposed for new developments like Resorts World.