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Tourism is the driver of the state’s economy, employing more Nevadans than any other industry. Tourism-related businesses and tourists are the single largest contributor to state and local tax revenues in the state. Statewide, the tourism industry accounted for more than 460,000 jobs in 2016, or 36 percent of Nevada’s employment base. According to the Nevada Resort Association, the Silver State’s tourism sector was responsible for $13 billion in wage and salary payments in 2016, which when coupled with secondary impacts, totaled more than $19 billion.
In 2016, visitors to the state spent over $40 billion for activities ranging from gambling to hotels to sightseeing. When combined with indirect spending on vendor purchases and employee spending, the total soared to $69 billion.
In addition to regular taxes and fees that all Nevada businesses incur, the Nevada Resort Association has indicated that the tourism and gaming industry also contributed approximately $1.6 billion in industry-specific taxes and fees. These include gaming-related contributions, hotel lodging taxes, and live entertainment taxes. The industry’s contributions to public revenues impact both the state as well as local jurisdictions. Nevada’s tourism industry accounts for roughly $1.4 billion, or 42 percent, of the state’s overall tax revenues of $3.4 billion.
Last year was a great year for Nevada’s casino industry. Revenues increased to over $25.2 billion, up from $24.6 billion in 2015. The industry generated an income of an impressive $979 million, a tremendous turn-around from losses of $661 million in 2015. 2016 was the first year of profitability for the state’s casino industry since 2008. During the 2015 fiscal year, over 273 casinos in the Nevada grossed over $1 million in gaming revenue.
There is little doubt that the use of alcohol fuels gambling. Many casinos provide free drinks to encourage hitting the slots and tables. The 64 thousand dollar question is, will consumers high on marijuana spend more time at gaming tables and slots, or will marijuana consumption decrease their gambling?
This implication of the legalization of recreational marijuana in Nevada could well kill the state’s “golden goose.” On the other hand, perhaps those individuals who are well lubricated and relaxed by the use of this newly state-legal substance will open their wallets wider, further bolster the overall economy, increase state employment numbers and up Nevada’s tax revenues.
It is anyone’s guess and time will tell. Bets anyone???