Las Vegas Casino Giants Predict Lower Returns from 2024 F1 Race

The excitement surrounding the 2024 Las Vegas Grand Prix is palpable. Still, top executives from the Strip’s two largest casino-hotel operators, MGM Resorts International and Caesars Entertainment, are tempering expectations for this year’s financial impact.

During recent quarterly earnings calls, both companies acknowledged that the upcoming Formula One race, scheduled for November 21-23, is unlikely to replicate the financial success of its 2023 debut.

“While not as large as last year’s event, [F1] still brings significant economics to MGM during what has historically been one of the slowest weekends of the year,” said Jonathan Halkyard, Chief Financial Officer of MGM Resorts.

Tom Reeg, CEO of Caesars Entertainment, echoed this sentiment, noting that the 2023 race substantially boosted their earnings.

“Last year’s race gave us a $17-$18 million lift in quarterly EBITDA over the same period in 2022,” Reeg explained “However, we anticipate returns this year to be flat-to-down.” He added that these estimates are highly dependent on gambling numbers, which could fluctuate significantly due to an influx of affluent international gamblers, according to ReviewJournal.com.

For the first time, Formula 1 Las Vegas Grand Prix officials are offering discounted tickets to this year's race. Some F1 experts are calling it a desperate attempt to fill seats. pic.twitter.com/ckymitsLU8

— Las Vegas Locally 🌴 (@LasVegasLocally) October 30, 2024

Despite the anticipated revenue decline, both companies remain optimistic about the long-term benefits of hosting the F1 event. “The race continues to drive more visitors to Las Vegas, and we view it as an additive event,” Reeg stated.

Bill Hornbuckle, Chief Executive Officer of MGM Resorts, reaffirmed his earlier position, suggesting that hotel room revenue from this year’s event would be down about $30 million compared to 2023.

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