Posted on: August 17, 2022, 03:03h.
Last update on: August 17, 2022, 03:48h.
Formula 1 is the glitziest of motorsports, and that reputation will be in full effect when the circuit makes its Las Vegas debut in November 2023.
The Sports Business Journal reported MGM Resorts International CEO Bill Hornbuckle said the company expects to scoop between $20 million and $25 million worth of tickets for the 2023 Las Vegas Grand Prix. They plan to use some of those tickets to cobble together hotel/race packages with price tags of $100,000.
MGM, the largest operator on the Las Vegas Strip, could also triple its room rates at some locations to capitalize on the race.
F1 hosted the Caesars Palace Grand Prix in Las Vegas in 1981 and 1982. But there was no racing on the Strip. The Las Vegas Grand Prix, scheduled for Saturday, November 25, 2023, will take place on the Strip, passing iconic venues such as Bellagio and Caesars, among others.
Las Vegas F1 race could be boon for casinos
As the entertainment capital of the world, Las Vegas has no shortage of events, shows and sports, and operators on the Strip are well known for raising room rates for big-name events, whether conventions or sports competitions.
However, F1’s arrival in Sin City could be a different ballgame. From owners to drivers to fans, many of whom are well-heeled celebrities, F1 is motorsport at its highest. In other words, MGM’s marketing of $100,000 ticket packages and tripling room rates aren’t far-fetched ideas.
Putting a $100,000 F1 race package into context, MGM is offering a VIP package for the Oct. 2 Las Vegas Raiders/Denver Broncos game at Allegiant Field at a cost of “just” $3,134 per person. This includes a suite at Aria or Mandalay Bay, depending on the operator.
MGM’s NFL deals vary depending on which team the Raiders are hosting. For example, the VIP package for the Jan. 1 Raiders/San Francisco 49ers game is $3,734 per person. This underscores the fact that casino operators believe they can raise the prizes drastically and people will still want to attend the inaugural F1 race in Las Vegas.
These Casinos Could See Huge Price Increases
The Las Vegas circuit will be 3.8 miles long and feature 14 turns, with a straight that will allow drivers to push over 200 miles per hour.
MGM did not say which of its Strip locations could see the biggest rate increases for the race. But because of their reputations and clientele, Bellagio and Cosmopolitan make the most sense for the spectacular room rates induced by F1. Some Las Vegas residents are already speculating that Cosmopolitan rooms with balconies will see the biggest price increases for the Grand Prix.
MGM recently put the finishing touches on its $1.6 billion acquisition of the licensing rights to Cosmopolitan.