As Las Vegas casino operators and the state of Nevada look back on their third quarter revenues for the 2024 financial year, gambling business bosses recently admitted the 2024 Las Vegas Grand Prix might not provide as much of a revenue boost as it did in 2023.
The heads of MGM Resorts International and Caesars Entertainment, the two biggest Las Vegas casino resort operators, spoke last week on a call with investors. Both said they expected the boost in revenue from the upcoming November race to be close to or slightly less than the inaugural 2023 edition.
The expected income for casinos is variable. That’s because the highly volatile baccarat is the game of choice for the high limit gamblers among the international jet-setting crowd that follows Formula One races around the world.
The predictions of potentially failing revenues from the race come as the multimillion-dollar fallout from last year’s event is still not over the finishing line. Several lawsuits are still chasing at race organizer’s heels over business disruptions from the 2023 race.
The Predictions
Caesars CEO Tom Reeg spoke to investors on last week’s company earnings call. He said that in 2023, the operator of Caesars Palace saw a $17 million revenue boost from the Las Vegas Grand Prix.
However, he also said he expects the number for this year to be flat or slightly below the 2023 figures. On the whole, he said the race was a plus. Reeg said November was traditionally a quieter time for Las Vegas casinos, and the race was a welcome boost of new visitors.
MGM’s CEO Bill Hornbuckle also spoke last week on a call to his company’s investors. He said he expects the Bellagio and Cosmopolitan operator to make around the same as last year.
“I think we’re still looking at the same number,” he said.
Both Hornbuckle and Reed alluded to the potential for good fortune on the baccarat tables that might turn out some surprise growth.
“Unless we get really lucky in the casino, and all things can happen — we think that number holds,” Hornbuckle said.
Controversies Continue
The news that the two biggest Las Vegas Strip casino operators aren’t hugely bullish on the revenue prospects for the second Las Vegas Grand Prix will be worrying to race operators.
The race was considered a sporting success by almost all accounts. The thrilling spectacle of a close-run high speed race right past all the iconic sights of the Las Vegas Strip certainly delivered on a sporting front.
However, not everyone saw that as worth it. Several local businesses and Las Vegas Strip-adjacent casino Ellis Island are suing Clark County and Las Vegas Grand Prix over revenue they say they lost due to the event.
Clark County also admitted this year it lost money after preparing for the race weekend. And that was with a boosted income figure of $1.5 billion that some analysts have disputed.
On top of that, the race organizers had management turmoil earlier this year, and the Las Vegas Convention and Visitors Authority was criticized for the amount of comped tickets it gave away to the event.
David is an online casino expert who specializes in online slots and boasts over 10 years experience writing about iGaming. He has written for a wide range of notable publications, including eSports Insider and WordPlay Magazine.
David graduated Derby University with a BA Degree in English Literature and Creative Writing.
