NAICS 721120 Quarterly Industry Report
Casino Hotels
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 721120Sector: Accommodation and Food Services (72)Updated: Q1 2026
About This Report
This industry profile for Casino Hotels (NAICS 721120) draws on data from the U.S. Census Bureau Economic Census[5], Bureau of Labor Statistics[6], FinCEN[9], and SBA size standards database[7]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, gaming industry analysts, and business brokers with current market data. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team, with all quantitative claims sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the casino hotels industry.
Industry Definition & Overview
Casino Hotels (NAICS 721120) encompasses establishments primarily engaged in providing short-term lodging in hotel facilities with a casino on the premises, featuring table wagering games and typically slot machines, sports betting, food service, entertainment, and convention facilities per the U.S. Census Bureau[4]. Properties with racetracks combined with casino and hotel operations are also included. Per the Census Bureau Economic Census[5], the industry generated total revenue of $60.8 billion with 408,493 employees and annual payroll of $14.4 billion. Slot machines account for roughly 70 percent of gaming revenue at large properties, with individual machines retaining 5 to 12 percent of wagers placed. Table games including blackjack and baccarat contribute materially in high-limit areas. Per Bureau of Labor Statistics[6] data, Las Vegas Strip properties frequently exceed 90 percent occupancy, while luxury resorts average 70 to 75 percent occupancy with RevPAR between $210 and $450. Based on the SBA Table of Size Standards[7], the size standard is $40 million in average annual receipts. Non-gaming revenue from hotel rooms, dining, entertainment, retail, and convention services has grown to represent 30 to 40 percent of total revenue at major resort properties. Casino hotels face multi-layered regulatory oversight including state gaming licenses, federal Bank Secrecy Act[8] anti-money laundering requirements, and graduated gaming tax structures that vary by jurisdiction. Competition from legalized online gambling platforms and mobile sports betting apps continues to reshape customer acquisition strategies.
What's Included in This Industry
- Slot machine and electronic gaming device operations
- Table game operations including blackjack, baccarat, poker, and roulette
- Sports betting and race book wagering facilities
- Hotel guest room and suite lodging services
- On-site restaurant and food service operations
- Live entertainment, shows, and event programming
- Convention and meeting space rental and services
- Retail shopping, spa, and recreational amenities
- Loyalty program and player rewards management
- Valet parking and transportation services for guests
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Accommodation and Food Services | 72 |
| Subsector | Accommodation | 721 |
| Industry Group | Traveler Accommodation | 7211 |
| NAICS Industry | Casino Hotels | 72112 |
| National Industry | Casino Hotels | 721120 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 721110 | Hotels (except Casino Hotels) and Motels | Hotels and Motels share core lodging operations including room inventory management and guest services but lack the integrated gaming component that drives casino hotel revenue streams |
| 713210 | Casinos (except Casino Hotels) | Casinos (except Casino Hotels) operate gaming floors without integrated hotel lodging facilities, often competing in the same regional markets for gaming customer spending |
| 722511 | Full-Service Restaurants | Full-Service Restaurants operate within casino hotel properties as a key non-gaming revenue source, with celebrity chef partnerships and fine dining venues supporting premium positioning |
| 721199 | All Other Traveler Accommodation | All Other Traveler Accommodation provides alternative lodging options in gaming destination markets, with vacation rentals capturing overflow demand during peak convention and event periods |
| 561510 | Travel Agencies | Travel Agencies and tour operators package casino hotel stays as part of destination travel programs, channeling group demand through charter and incentive travel arrangements |
| 713110 | Amusement and Theme Parks | Amusement and Theme Parks share the destination entertainment model with casino resorts, as integrated resort complexes increasingly bundle gaming with theme park attractions |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Nevada | 31.3% | 151 |
| 2 | California | 8.7% | 42 |
| 3 | Mississippi | 5.4% | 26 |
| 4 | Oklahoma | 3.7% | 18 |
| 5 | South Dakota | 3.7% | 18 |
| 6 | Louisiana | 3.5% | 17 |
| 7 | Iowa | 3.3% | 16 |
| 8 | Minnesota | 3.3% | 16 |
| 9 | Colorado | 2.9% | 14 |
| 10 | Arizona | 2.7% | 13 |
% Of Establishments
0%
31%
Source: County Business Patterns, U.S. Census Bureau[3]
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 721120?
NAICS 721120 covers establishments operating short-term lodging with an on-premises casino featuring table games and typically slot machines, sports betting, food service, entertainment, and convention facilities per the U.S. Census Bureau[4]. Properties combining racetracks with casino hotels are also included. Standalone casinos without hotel facilities are classified separately under NAICS 713210.
How large is the U.S. casino hotel industry by revenue and employment?
Per the Census Bureau Economic Census[5], casino hotels generated total revenue of $60.8 billion with 408,493 employees and annual payroll of $14.4 billion. Major operators include MGM Resorts, Caesars Entertainment, Wynn Resorts, and Las Vegas Sands. Las Vegas, Atlantic City, and regional tribal gaming markets account for the largest concentrations of casino hotel operations.
What are the primary revenue streams for casino hotel operations?
Gaming revenue led by slot machines at roughly 70 percent of total gaming income forms the core stream, with table games and sports betting adding material contributions per BLS data[6]. Non-gaming sources including hotel rooms, food and beverage, entertainment, retail, and convention services represent 30 to 40 percent of total revenue at major resort properties. Sports betting has become a growing category following widespread state-level legalization.
What is the SBA size standard for casino hotels?
Per the SBA Table of Size Standards[7], the size standard is $40 million in average annual receipts calculated over the preceding five fiscal years. Most large casino hotel operations far exceed this threshold. Regional gaming lodges and smaller tribal casino properties are the most likely to qualify as small businesses under this standard.
What regulatory requirements apply to casino hotel operations?
Casino hotels face multi-layered regulatory oversight. State gaming commissions issue operating licenses requiring thorough background checks on key personnel and vendors per the American Gaming Association[13]. Federal Bank Secrecy Act[8] rules require Currency Transaction Reports for transactions exceeding $10,000 and Suspicious Activity Reports for unusual patterns. Gaming tax rates vary by jurisdiction and are often graduated based on gross gaming revenue.
How are casino hotel properties valued for acquisition purposes?
Valuations typically blend income-based approaches using EBITDA multiples with asset-based methods reflecting real property and gaming equipment values per industry transaction data. Key metrics include gaming revenue per square foot, hotel RevPAR, and total revenue per available room. Cap rates for stabilized casino hotels generally range from 7 to 10 percent depending on market position and regulatory environment. License transferability and regulatory approval timelines affect deal structure and closing timelines.
How has online gambling affected casino hotel demand?
Legalized online gambling and mobile sports betting have expanded the total addressable gaming market while creating new competitive dynamics per the American Gaming Association[13]. Some industry analysts find that online platforms serve as customer acquisition channels that drive awareness and eventual visits to physical casino properties. Destination resort properties with entertainment, dining, and convention programming have proven more resilient to online competition than gaming-only facilities.
What occupancy and room rate benchmarks apply to casino hotels?
Las Vegas Strip casino hotels frequently exceed 90 percent occupancy with ADRs well above standard hotel benchmarks per BLS industry data[6]. Luxury resort properties average 70 to 75 percent occupancy with RevPAR between $210 and $450. Regional casino hotels outside major gaming destinations typically achieve lower ADRs but benefit from reduced competition and more stable local customer bases.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Census Bureau census.gov
- [5]Census Bureau Economic Census data.census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Table of Size Standards sba.gov
- [8]Bank Secrecy Act fincen.gov
- [9]FinCEN fincen.gov
- [10]SBA lending sba.gov
- [11]SBA 7(a) loans sba.gov
- [12]504 loans sba.gov
- [13]American Gaming Association americangaming.org
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