Nevada gaming by the numbers: Casino taxes exceed expectations

Casino taxes and fees collected by Nevada during the state’s most recent fiscal year exceeded economic forecasts, according to data from gaming regulators. However, collections are down slightly through the first couple of months in the current fiscal calendar due, in part, to the inherent volatility of casino games and a marginal decline in summer visitation.

In fiscal year 2024, which ended on June 30, Nevada collected more than $1.23 billion from casino-related taxes and fees, a 4.75 percent increase over fiscal year 2023 and 4.8 percent higher than projected. Taxes on gross gaming revenue — which represents the largest portion of what the state collects from casinos — was nearly $997.7 million in FY ‘24, up 3 percent from the previous year.

The state is expecting casino-related taxes and fees to generate more than $1.1 billion in fiscal year 2025, which began on July 1 and runs through June 30, 2025. Through the first two months, the state’s collections are down by nearly $27 million, or 13.1 percent, according to data from the Nevada Gaming Control Board and Nevada Gaming Commission.

The picture looks a little different when comparing results based on a calendar year.

Through the first six months of 2024, the state has collected nearly $639.7 million in fees and taxes from regulated gambling. Compared to the first half of 2023, this year’s total is $21 million more, an increase of 3.4 percent.

In calendar year 2023, Nevada casinos generated more than $1.2 billion in taxes and fees, according to public data. Last year’s total was a 5 percent year-over-year increase from 2022, which saw casinos and licensed gaming operators generate $1.15 billion in taxes and fees for the state.

More than 81 percent of the total collected in 2023 came from the graduated tax on monthly gross gambling revenue from licensed gaming facilities. Last year, that figure came out to roughly $984.6 million.

From Jan. 1 through Aug. 27, taxes on casinos’ gross gaming revenue have raised nearly $663.3 million, according to the state reports. Over the same period in 2023, taxes on gambling revenue generated a shade under $664 million. That represents a year-over-year decrease of 0.2 percent.

Taxes on Clark County gaming revenue

Gaming revenue taxes from casinos and licensees in Clark County, which includes properties on the Strip and downtown Las Vegas, constitute the largest share of the state’s take.

Through the first six months of 2024, Clark County casinos have contributed a little over $563.5 million to state coffers. That total is up 4 percent year over year.

Taxes collected from gaming revenue are based on a graduated scale; the tax rate increases when monthly revenue exceeds certain thresholds. The state taxes 3.5 percent on the first $50,000 in revenue, 4.5 percent of the next $84,000 and 6.75 percent on revenue of more than $134,000.

Counties and municipalities occasionally impose additional taxes on revenue, which can raise the overall rate by as much as 1 percent.

Nevada has the lowest effective tax rate on gaming revenue in the U.S. Despite that, only Pennsylvania ($2.3 billion) and New York ($2.1 billion) — which have tax rates between 16 percent and 55 percent depending on the type of gambling — generated more in taxes last year from gaming than Nevada.

Where does tax money on gaming revenue go?

The bulk of gaming-related taxes and fees go into Nevada’s general fund. The funds are allocated on a biennial basis at the direction of the state Legislature.

The taxes are primarily used for state educational programs and public transportation systems.

For budgeting purposes, the state collects and allocates tax revenue, according to fiscal years. For fiscal years 2024 and 2025, Nevada forecasted $1.92 billion from taxes on gaming revenue. For all casino-related taxes and fees, the total forecasted general fund revenue is $2.3 billion.

For the fiscal year that ended June 30, Nevada casino win (which is how the industry describes gaming revenue) eclipsed $15.8 billion, the most in state history. It was the third consecutive year gaming revenue in Nevada set a new annual record, according to public data.

Several submarkets, including Clark County, the Strip, downtown Las Vegas, Mesquite and Elko County, all reported new all-time highs in annual gaming revenue in fiscal year 2024.

The casinos on the Strip were responsible for generating more than $9.1 billion in revenue during the most recent fiscal year, a 6.1 percent year-over-year increase. According to Nevada gaming regulators, the Strip accounted for 57.4 percent of total statewide win.

Other taxes and fees on Nevada gambling facilities

In addition to taxing gaming revenue (which the state describes as percentage fee collections), the state imposes various other fees and taxes associated with casinos and gambling facilities.

The state collects a quarterly licensing fee on slot machines and table games from operators based on the number of each on a property. There is also an annual licensing fee for table games.

Casinos and gambling establishments with live entertainment are subject to a tax as well. If those facilities meet certain criteria based on their license type, Nevada imposes a 9 percent live entertainment tax on admission charges. In fiscal year 2024, the live entertainment tax generated nearly $127 million, a 4.6 percent increase over FY 2023.

David Danzis can be contacted at ddanzis@reviewjournal.com. Follow AC_Danzis on X.