One of the year’s most anticipated sporting events proved to be profitable for an international entertainment and hospitality giant.
The Las Vegas Formula 1 Grand Prix, which took place between Nov. 16 and 19, proved to be MGM Resorts’ highest-grossing weekend for hotel revenue in the company’s nearly 40-year history. As a result of the record revenue, MGM Resorts projects November to be its best month yet. MGM typically sees slower profits in November due to Thanksgiving and other holidays.
"It was the highest-grossing weekend for us,” said MGM Resorts CFO Jonathan Halkyard at the Bank of America Leveraged Finance Conference on Tuesday. "The second-highest was Consumer Electronics Show in 2019. So, when you think about other events that have happened in Las Vegas over the years and the scale of our company, that's quite something to have a record weekend on what was otherwise the slowest weekend of the year."
No exact revenue figures from MGM Resorts have been reported, but the company is expected to provide a glimpse of the race’s financial success in fourth-quarter earnings results. The Grand Prix also proved to be profitable for other Las Vegas hotels and surrounding businesses with an estimated economic impact of roughly $1.3 billion that weekend. The economic impact includes more than $360 million in paid wages to workers throughout Las Vegas, per F1 officials.
More history made
The Grand Prix also marked a historic moment for both online and retail sportsbooks. The race, which was won by Red Bull driver Max Verstappen, was the most bet F1 event in BetMGM’s history, sources told Covers. Caesars Sportsbook also reaped the benefits of the race with a handle that tripled the operator’s previous most popular motorsports event — the Daytona 500. The second-highest F1 handle on Caesars was the Miami Grand Prix, which took place May 7. The race was also won by Verstappen with Red Bull teammate Sergio Pérez finishing second.
The F1 calendar also has another U.S. stop in Austin, Texas for the United States Grand Prix.
Hotels have already started gearing up for the 2024 Las Vegas Grand Prix next November.