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How Gaming Benefits Nevada


During fiscal year 2016, roughly $1.4 billion in taxes and fees were paid by Nevada hotel-casino operators. This included major contributions to Nevada's three largest sources of revenue: sales tax, property tax and gaming tax. Nevada hotel casinos account for nearly $1.4 billion, or approximately 42 percent of State General Fund revenues – more than any other industry.

NV Hotel-Casino Industry's Contribution to State General Fund Revenues - FY 2016

General Fund Revenue Source* Total Collections Hotel-Casino
Industry Contributions
Industry as a
Percent of Total
Branch Bank Excise Tax $2,786,429 $0 0.0%
Business License Fee $103,045,619 $9,171,060 8.9%
Business License Tax (Phased Out) $243 $0 0.0%
Cigarette Tax $153,033,176 $26,100,567 17.1%
Commerce Tax $143,507,593 $27,099,213 18.9%
Gaming Taxes $708,670,149 $708,670,149 100.0%
Governmental Services Tax $66,731,895 $31,630,918 45.0%
HECC Transfer (Higher Education Capital Fund) $5,000,000 $5,000,000 100.0%
Insurance Taxes $310,223,028 $32,039,113 10.3%
Liquor Tax $43,944,413 $17,085,553 38.9%
Live Entertainment Tax $128,530,966 $111,682,171 86.9%
Mining Taxes and Fees  $34,743,566 $0 0.0%
Modified Business Tax (MBT) – Financial $27,188,910 $0 0.0%
Modified Business Tax (MBT) – Mining $21,938,368 $0 0.0%
Modified Business Tax (MBT) – Nonfinancial [a] $512,651,073 $107,948,531 21.1%
Other Tobacco Tax $13,131,919 $2,239,714 17.1%
Passenger Carrier Excise Tax $11,898,532 $4,164,486 35.0%
Real Property Transfer Tax [b] $75,794,844 $0 0.0%
Sales and Use Tax $1,077,003,772 $348,886,914 32.4%
Total Tax Revenue $3,439,824,495 $1,431,718,390 41.6%
Other Revenue $254,018,292 $44,003,622 17.3%
Total $3,693,842,787 $1,475,722,012 40.0%
View full table »

Sources: Economic Forum; LVCVA; Nevada Gaming Control Board, Quarterly Statistical Report; Nevada Department of Taxation; Nevada Department of Employment, Training and Rehabilitation; and Applied Analysis.

*Note: Reflects collections within the Nevada General Fund and excludes taxes, fees and other charges that inure to the benefit of other state and local municipalities. [a] The modified business tax is a tax on gross payroll, less a deduction for employer-provided health care coverage. Because the hotel-casino industry provides such a significant share of these benefits to its employees, the industry’s share of modified business tax collections is lower than its share of employees. [b] Assumed to be zero due to a lack of available data. Sources: Economic Forum; LVCVA; Nevada Gaming Control Board, Quarterly Statistical Report; Nevada Department of Taxation; Nevada Department of Employment, Training and Rehabilitation and Applied Analysis.

Large tax contributions by the tourism and gaming industry allow Nevada’s residents and businesses to enjoy among the lowest tax burdens in the nation.

2017 State Business Tax Climate Index

State Business Tax Climate Rankings, 2016

Source: Tax Foundation. Note: A rank of 1 is best, 50 is worst. The components of the Index are corporate tax, individual income tax, sales tax, unemployment insurance tax and property tax. The report shows tax systems as of July 1, 2016 (the beginning of Fiscal Year 2017).

Nevada's tax structure continues to be one of the least burdensome on the average citizen in the nation for the following reasons:

  • Residents pay very low per capita taxes. The comparative tax burden for a family of three with an income of $75,000 ranks Las Vegas 49th out of 51 selected metropolitan areas in the United States.
  • Property taxes in Nevada are far lower than most states, and tax abatements that favor residential homeowners have widened the gap between classes of taxpayers.
  • Tourists pay a significant portion of the sales tax. It is estimated that approximately 33 percent of the sales tax is paid by the gaming industry, its employees, and tourists, thereby reducing the tax burden of the average Nevada resident.

Unlike other states such as California, Nevada does not have a corporate or personal income tax. Because of the gaming industry in Nevada, many of the additional taxes imposed on individuals and businesses in other states are not imposed in Nevada. Some of these taxes include:

  • Personal income tax
  • Corporate income tax
  • Sales tax on food
  • A general admissions tax
  • Bank excise measured by income
  • Bank share tax
  • Special intangible tax
  • Franchise tax on income
  • Inventory tax

Source: Nevada Taxpayers Association.

It Doesn't Stop With Gaming Taxes...

Few Nevadans completely understand how significantly gaming contributes to state and local governments through sales taxes, property taxes and business activity taxes as well. The hospitality industry pays a significant share of property taxes. In Clark County, hotels and hotel-casinos account for just 2 percent of improved nonresidential acreage, but 42 percent of taxable nonresidential property value. Including residential uses, hotels and hotel-casinos account for 1 percent of improved acreage, but nearly 13 percent of all taxable value, excluding vacant land. Nearly all of the top 10 property taxpayers in Clark County are hotel-casino operators, with MGM Resorts International claiming the number one spot. Meanwhile, hotel-casino operators account for half of the top 10 property taxpayers in Washoe County, with Peppermill Casinos Inc. reporting the second-highest value.

Largest Ad Valorem (Property) Taxpayers

Taxpayer Assessed [a] Appraised [b]
Clark County (2016-2017)
1 MGM Resorts International $3.59B $10.25B
2 NV Energy $1.98B $5.66B
3 Caesars Entertainment Corp. $1.86B $5.31B
4 Las Vegas Sands Corp. $0.97B $2.78B
5 Wynn Resorts Limited $0.93B $2.65B
6 Station Casinos Inc. $0.71B $2.02B
7 Nevada Property 1 LLC $0.38B $1.09B
8 Eldorado Energy LLC $0.38B $1.09B
9 Boyd Gaming Corp. $0.33B $0.94B
10 Howard Hughes Corp. $0.33B $0.94B
11 Hilton Grand Vacations $0.24B $0.68B
12 Picerne Real Estate Group $0.22B $0.62B
13 Southwest Gas Corp. $0.19B $0.55B
14 Universal Health Services Inc. $0.19B $0.54B
15 General Growth Properties Inc. $0.19B $0.53B
16 Molasky Group of Companies $0.17B $0.49B
17 Ruffin Companies $0.16B $0.47B
18 Harsch Investment Properties $0.15B $0.41B
19 Switch Communications $0.14B $0.41B
20 Hospital Corporation of America $0.14B $0.41B
Washoe County (2016-2017)
1 Peppermill Casinos Inc. $95.31M $272.32M
2 Icon Reno Property Owner Pool 3 NE $66.77M $190.76M
3 Golden Road Motor Inn Inc. $45.33M $129.51M
4 Apple Inc. $41.79M $119.41M
5 MPT of Reno LLC $38.66M $110.45M
6 Circus & Eldorado Joint Venture $37.73M $107.81M
7 Northwestern Mutual Life Ins. $27.81M $79.46M
8 Sparks Legends Development Inc. $27.76M $79.30M
9 International Game Technology $24.85M $71.00M
10 Hyatt Equities LLC $24.27M $69.35M
11 Icon Reno Property Owner Pool 6 WI $23.17M $66.21M
12 Lennar Reno LLC $22.12M $63.20M
13 Toll South Reno LLC $18.74M $53.55M
14 Wal-Mart Real Estate Bus Trust $18.28M $52.22M
15 G&I VII Reno Operating LLC $17.32M $49.49M
16 TR Reno LLC $16.75M $47.86M
17 Charles River Laboratories Inc. $16.71M $47.75M
18 Meadowood Mall SPE LLC $16.21M $46.31M
19 Gage Village Commercial Development $15.73M $44.95M
20 Eldorado Resorts LLC $15.29M $43.68M

Sources: Clark County Assessor’s Office, Secured and Unsecured Tax Rolls; Washoe County Assessor’s Office, Real Property Assessment Roll. Notes: [a] Assessed value reflects 35 percent of appraised value. [b] Appraised value reflects the cash value of land and replacement cost of improvements.

Other ways gaming benefits Nevada

Employment » Tourism » Education »