Isn’t the answer obvious enough? Playing the game. I even lost $200 at the craps table last week. In Vegas, the casinos are opulent palaces. Those mansions are financed by those who enjoy feeding machines and chasing royal flushes.
However, what about all the “outsider” pursuits? Restaurants, bars, lodging, events, stores, and so on. Do fun88 app download they actually improve the casino’s bottom line, or are they just a ploy to get us in as a loss leader? To determine the solution, I examined MGM Resorts’ 2016 financial report.
Among its many Las Vegas properties are the MGM Grand, Luxor, Bellagio, Excalibur, Circus Circus, Monte Carlo, New York New York, Mirage, and Mandalay Bay. The accounting I’m looking at provides me with a decent overview of revenue and profitability even though it includes some non-Vegas locations.
The income for each category, or, to put it another way, the amount that customers spent on each activity before MGM subtracted costs, is displayed in the table below.
The casino’s revenue is determined by what it “wins” over the course of the year, after player payouts. Revenue from 1win apk download sources other than MGM’s primary business is referred to as “Other Income.” (Example: Rented out extra warehouse space not being used to another, unrelated, entity).
Revenues by Category:
It’s no secret that MGM generates the most money of any establishment—48 percent of overall revenue comes from the casino. The company’s second and third biggest sources of revenue are hotel rooms and food and drink, which accounted for 20% and 16% of sales in 2016, respectively.
After deducting the costs incurred, you can obtain a lovely, simple, high-level overview of the revenue generated dream11 login by each category for the casino.
The Casino generates $2.2 billion in net profit, which is almost twice as much as the combined $2.5 billion from room sales, entertainment, food and beverage, and “other” categories, even though other categories also contribute to MGM’s bottom line.
The information above should give you a decent idea of where Las Vegas casino revenue and profits come from. Additional expenses that aren’t directly attributable to one of the revenue categories above, like corporate expenses ($313 million in 2016), administrative expenses ($1.4 billion in 2016), and so on, eat into MGM’s bottom line. It is clear that there are other options available in the gaming industry, even though gaming revenue is substantial.
