The Benefits of Hosting An F1 Grand Prix In Las Vegas: A City Built For Speed

Let’s face it: we all thought we were in for a boring 2024 F1 season that would be dominated by one car – Red Bull – and one driver – Max Verstappen. Judging by the first few races, we thought that Max had his fourth World Driver’s Championship in the bag. But, with less than eight races to go, this couldn’t be further from the truth.

McLaren has been the fastest car in the second half of the season, and Red Bull has been nowhere near as dominant. The Las Vegas GP is where we all expect the season to unfold and find out who can claim the WDC title, as well as the Constructors Standings. But today, we’re not here to discuss the 2024 season (because it could take days to do that), but the benefits that the city of Las Vegas and the state of Nevada have from hosting the Las Vegas Grand Prix. This was evident in the 2023 Las Vegas Grand Prix, which, despite some hiccups, was a great success, and it set the stage for a promising future.

Are We In For Another Record-Breaking Event?

The 2023 Las Vegas Grand Prix was a massive financial success, and there are many factors that point that out. MGM Resorts, for example,  recorded their highest-grossing weekend in the company’s history during the F1 weekend event, exceeding even major events like the Consumer Electronics Show (CES). With over 50,000 hotel room rentals near the race location, MGM and all the other hotels in the area capitalized on the influx of visitors, contributing to unprecedented hotel revenue numbers​. Many of the guests were also regulars at the casino venues, and the Las Vegas casinos experienced a significant boost in app downloads where players could play their favorite roulette online game and other casino games while enjoying the events on track. 

If 2023 was anything to go by, we might be in for another record-breaking event in November 2024.

Boost to Local Economy

Hosting the Grand Prix brings substantial economic benefits to Las Vegas and Nevada. Last year’s event generated around $220 million in hotel room revenue, showcasing the city’s capacity to handle large-scale international events. Luxury hotels along the famous Vegas Strip experienced a massive surge in bookings, with room rates soaring by more than 300% during the race weekend​! 

The success of the 2023 event meant that there will be future editions of the Las Vegas Grand Prix. Besides the major boost to the hotels and shops around vegas, this also means a continued investment in infrastructure. We’ve heard rumours about the development of a permanent paddock and unique hospitality experiences around the track, which also highlights Formula 1’s commitment to making Las Vegas a permanent stay on the racing calendar. 

The Las Vegas government and officials have signed an agreement in which it approves the closure of the Vegas Strip until 2032, although the Grand Prix itself has only been officially confirmed until 2025. Nevertheless, these infrastructure investments are expected to provide recurring economic benefits, with projections indicating even higher revenue in future races.

Besides the hospitality sector, numerous local restaurants, entertainment venues, and shops saw a significant boost in activity during the 2023 LV Grand Prix weekend.

Viewership and Fan Engagement

Despite the 2023 race airing late at night on the East Coast, it drew an impressive 1.3 million viewers on ESPN, making it one of the top-viewed F1 races of the season. This high engagement reflects the event’s appeal and the growing popularity of Formula 1 in the U.S. Las Vegas was the top market for viewership, demonstrating the city’s strong local support despite initial concerns over the race’s logistics​.

The Impacts on Las Vegas Tourism and the Community

The immediate financial gains are the major boost for the hospitality industry, but beyond them, hosting the Grand Prix enhances the city’s image as a premier destination for high-profile events. It doesn’t get more ‘high-profile’ than holding an F1 race, so it’s a major boost in this area too. The race attracted fans from all over the world, including dozens of A-list celebrities. This aligns with Las Vegas’ long-term strategy of converting sports into multi-day experiences that attract visitors of all profiles and contribute significantly to the local economy.

What To Expect From The 2024 F1 Las Vegas Grand Prix

The groundwork was laid in 2023, so the 2024 Las Vegas Grand Prix is expected to build on its success. Most importantly, most F1 fans loved the 2023 race and, despite the worries, the track turned out to be a great place for overtaking. Now, every fan is eagerly waiting for the 2024 events on track, which means that the event will continue to be a significant driver of economic activity and global visibility for Las Vegas.