The first-ever Las Vegas GP, staged in November 2023, not only sparked enthusiasm among Formula 1 enthusiasts but also prompted diverse reactions from the residents of Las Vegas. While certain people voiced frustration over the substantial disruptions caused by the event, others, including casino owners, celebrated its financial success.
According to the reports from The Nevada Gaming Control Board the Vegas Strip casinos experienced their second-best month ever, thanks to Formula 1’s presence. The influx of race enthusiasts led to substantial gains for the hospitality industry, with MGM Resorts proclaiming it their most lucrative weekend to date.
However, amidst the substantial profits, the owners of resorts and casinos seem to have downplayed the initial inconveniences faced by residents. This is observable in the ongoing partnership of the organizers of the Las Vegas Grand Prix and F1 for the foreseeable future. However, before exploring future possibilities, let’s carefully examine the financial landscape of Las Vegas, revealing a distinct contrast between November 2022 and 2023.
While the esteemed SEMA auto event in 2022 contributed $669.5 million to casinos, November 2023 driven by the Las Vegas Grand Prix, propelled the iconic Strip casinos to an impressive $821 million. The contrast is more evident in table game earnings, experiencing a significant $151.5 million surge, representing a remarkable 22.6% change.
Furthermore, a deeper analysis reveals Baccarat’s pivotal role, with its earnings jumping from $57.8 million in November 2022 to an astonishing $178.3 million in 2023.
What more surprises did the Las Vegas Grand Prix bring to us?
The Las Vegas Grand Prix was highly anticipated in 2023, marking Formula 1’s third race in the United States. However, what added an extra layer of intrigue to the event was the distinctive approach the organizers took themselves. In light of this as per The Athletic, the president and CEO of the Las Vegas Convention and Visitors Authority, Steve Hill has emphasized specific key points regarding the triumphs of the event.
In his words, he emphasizes that the benefits derived from this race are both significant and far-reaching. As per Hill, the Collected of Las Vegas GP, the event has yielded a record-breaking economic and fiscal impact, contributing over $100 million in tax revenue to the Las Vegas community.
Beyond Hill’s assessment, the firm Applied Analysis, in an estimate made nearly a year ago, projected a total economic benefit exceeding $1.2 billion for the Las Vegas area. Interestingly, these projected figures were rooted in visitors spending $966 million and $316 in event operations and support costs, according to the Las Vegas Review-Journal.
Another contributing factor to Las Vegas’s success was the strategic scheduling of the race just before Thanksgiving. This timing aligned with a boost in the American economy during the holiday season.
In a culmination of the collaborative efforts between F1 and the Las Vegas convention, the race performed well also on television, particularly in the US. ESPN’s updates revealed that the Grand Prix averaged 1.3 million viewers from 1 am to 3:05 am ET, making it the third most-watched race of the year.
