Casinos require energy to power casino floors, hotels, restaurants, and bars. Research shows casino hotels in the US consume 14 KW hours of energy for every square foot per year. In Las Vegas, energy consumption by casinos accounts for a fifth of all energy consumed in the city. Casinos require energy for lighting, conditioning, ventilation, cooking, and many other uses.
When a company consumes more power, its productivity should be directly proportional, and so are the taxes paid. More power consumption by casinos does not directly indicate more productivity.
Investing on energy saving strategies
Casinos cannot operate without power, and they are categorized as high-power consumers. Research shows one casino can consume energy five times or more compared to an average large healthcare facility. Casinos in Las Vegas, for instance, consume 1/5 of all energy consumed in the city. Of that amount, 30% is spent on lighting, which is extremely high. Casino hotels consume 14 KW hours annually for every square foot.
Combined, research shows casinos spend nearly 60% of their revenue on meeting energy consumption expenditures. Still, the casinos have to pay taxes, wages, suppliers, and other services. The sector has to think of alternatives and develop new ways to save energy.
Casino online games are one of the strategies casinos use to reduce energy consumption. What online casinos need to power most is the gaming platform and computers. Users connect to the casino on mobile devices, and the casino saves a great deal of energy as a result.
On casino floors and hotels, they can use LEDs instead of traditional bulbs to save energy. Land-based casinos are also replacing air conditioners, slot machines, and other installations with energy-saving systems.
How governments collect taxes from casinos
For many years, state governments have benefited from taxes collected from casinos. The rapid growth of casinos in recent times means state governments expect more from casinos. Online slots are one of the best revenue earners in the casino sector. State governments charge taxes from gross and not net revenue. The taxes are high, and their rates are approximated with those of alcohol and tobacco products.
If a manufacturer consumes more energy, it directly shows they are producing more and thus will generate more revenue. The situation is different in casinos because they consume a lot of energy regardless of whether they are earning more or not. Paying taxes from gross revenue means the casino’s net revenue will be affected.
Casinos going green to save energy costs
Many sectors in the US are investing in green energy. Understanding carbon footprints and their impact on the environment has triggered many companies, including casinos, to go green. A visit to casino facilities across the states will reveal hundreds of solar panels installed on roofs. Due to solar energy, casinos are saving up to 10% of their energy use.
One of the casinos in Las Vegas has installed solar panels covering 20 acres and is saving 20% of its energy consumption. Apart from solar energy, casinos are using modernized systems that significantly consume lesser power. High energy consumption in the US casinos is still a major challenge, but players in the sector have taken broad steps to address the issue.
