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Posted on: August 17, 2022, 03:03h.
Last updated on: August 17, 2022, 03:48h.
Formula One is the glitziest of motorsports, and that reputation will be in full effect when the circuit makes its debut in Las Vegas in November 2023.
A rendering of the Las Vegas Grand Prix F1 circuit. MGM is likely to raise room rates for the 2023 race. (Image: F1)
The Sports Business Journal reported MGM Resorts International CEO Bill Hornbuckle said the company is planning to scoop up $20 million to $25 million worth of tickets for the 2023 Las Vegas Grand Prix. They have eyes toward using some of those tickets to cobble together hotel/race packages with $100,000 price tags.
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MGM, the largest operator on the Las Vegas Strip, could also triple its room rates at select venues to capitalize on the race.
F1 held the Caesars Palace Grand Prix in Las Vegas in 1981 and 1982. But there wasn’t racing on the Strip. The Las Vegas Grand Prix, scheduled for Saturday, Nov. 25, 2023, will take place on the Strip, running past 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 doesn’t lack for events, shows, and sports, and it’s widely known Strip operators boost room rates for marquee events, be they conventions or athletic competitions.
However, the arrival of F1 to Sin City could be a different ballgame. From owners to drivers to fans, many of whom are well-heeled celebrities, F1 is the highest of high dollar motorsports. In other words, MGM marketing $100,000 ticket packages and tripling room rates aren’t far-flung ideas.
Putting a $100,000 package for the F1 race 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. That includes a suite at Aria or Mandalay Bay, according to the operator.
MGM’s NFL offerss fluctuate by what team the Raiders are hosting. For example, the VIP Package for the Jan. 1 Raiders/San Francisco 49ers game is $3,734 per person. That underscores the point that casino operators believe they can dramatically raise prices and people will still want to attend the inaugural Las Vegas F1 race.
These Casinos Could See Huge Price Increases
The Las Vegas circuit will be 3.8 miles and features 14 turns, with a straightaway that will allow drivers to push upwards of 200 miles per hour.
MGM hasn’t said which of its Strip venues could see the largest rate increases for the race. But owing to their reputations and client bases, Bellagio and Cosmopolitan make the most sense for dramatic F1-induced room rates. Some Las Vegas locals are already speculating that rooms at Cosmopolitan with balconies will have the biggest price increases for the Grand Prix.
MGM recently put the finishing touches on its $1.6 billion acquisition of Cosmopolitan’s operating rights.
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