Las Vegas casinos anticipate huge economic impact from Formula 1 race

Updated April 16, 2023
Updated April 16, 2023By Chris Boline
las vegas betting news april 2023

A city that is known for always pushing high stakes and big payoffs, Las Vegas casinos are salivating at the thought of the Las Vegas Grand Prix’s economic effect on the region. Per one article, the LVGP is set for later this year for a long weekend of events from November 16-18. In what is typically one of the slower periods of the year for Vegas, this event is expected to be a huge economic win for the city’s casinos and businesses. In the same report, when the race was first announced last year, Clark County officials expected an economic impact of around $700,000 million. However, since then that number has been updated to be almost twice the valuation with additional research. 

For this article, SBS will be going over the latest gaming news coming out of Sin City and also some more notes about gaming in Vegas. 

Econ experts predict F1 to have 2x impact of Super Bowl

According to one outlet, economic prognosticators are expecting the economic impact of the LVGP to double the financial effect that the Super Bowl will bring to Las Vegas next year. As one report notes, this is quite the comparison considering that the Super Bowl is typically the biggest American sporting event of the year. That said, with Formula 1 racing being much more of a global draw than the NFL, this will be important on two fronts. First, the Super Bowl will draw fans from around the country to an already busy weekend in Vegas. Conversely, the LVGP will bring an international fan base from around the world to a weekend that would not be nearly as busy in Las Vegas. 

One casino power in particular, Caesars Entertainment, expects a significant revenue jump thanks to F1. According to one outlet, during its 2022 year-end earnings call in February, Caesars CEO Tom Reeg said he expects the company to see “Super Bowl-level” revenue thanks to F1. Per their analysts, this would be “5% or better in terms of EBITDA lift for the quarter that is driven by the weekend.” However, after some discussion, this was clarified by the Caesars points of contact by saying that they expect a $25 million increase in cash flow from the LVGP. Moreover, MGM Resorts is also expecting to see a large financial bump as well which bodes well since both casino groups cumulatively occupy the majority of the Strip. 

Economic impact study showcases LVGP’s potential

According to one outlet, earlier this year, Applied Analysis created an economic impact study of the Las Vegas Grand Prix where its findings were “stunning” to newcomers to F1 racing. The company estimates that the event will bring in approximately $1.3 billion in spending to Vegas. More specifically, this includes $966 million in visitor spending along with $316 million in event operations and support. In terms of manpower, the report expects more than 7,700 people will be hired in conjunction with the race. This translates to about $361 million in wages. 

In terms of casino operators, per sources, just about every casino operator in Vegas has a premium race and hotel package. F1 is also adding gaming partners as well for the race with Virgin Hotels and Hard Rock/The Mirage recently signing on. The auto racing circuit has also contributed directly to Vegas’ economy itself by purchasing land on the Strip and constructing its own buildings to the tune of approximately $500,000 million. 

Other thoughts, info, and news about Las Vegas betting

After you are all dialed in regarding the latest news from Sin City, make sure to check out all the great information that SBS has in store for you. For instance, our online Vegas sportsbooks guide gives you a ton of fantastic insights into the latest gaming happenings in Las Vegas and also Clark County. On a separate note from gaming news, if you are perhaps unsure of your payment options for betting, then do not fret as we have you covered. With the SBS payment methods breakdown you can see all kinds of options from crypto to traditional routes to make your deposits and withdrawals. Finally, for those that are looking to get into higher stakes wagering, the SBS VIP sports betting sites rundown goes over all the great perks of VIP online betting. 

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About the Author

Chris Boline
Chris Boline

As a devout aficionado of sports, Chris Boline has carved a career within the athletic realm. A skilled scribe, he boasts a decade-long portfolio that encompasses coverage of the NBA G League, the Los Angeles Chargers, football in the Mountain West Conference, and basketball. Beyond his professional pursuits, Chris is deeply invested in his community and dedicates his leisure hours to serving on boards, collaborating with community organizations, and cherishing the company of loved ones.

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