Posted on: December 28, 2023, 05:01h.
Last updated on: December 28, 2023, 05:02h.
The inaugural Formula One Las Vegas Grand Prix powered gross gaming revenue (GGR) to new highs in November, as statewide win climbed upwards of $1.37 billion. It’s the best November ever and the state’s second-best month of all-time behind only July 2023 when casinos won a little more than $1.4 billion.
F1 was conceptualized as a way to speed up gaming on the Las Vegas Strip during November, traditionally a slow month in Southern Nevada. Despite some local opposition because of months-long road closures and business disruptions in the leadup to the Nov. 16-18 race weekend, Las Vegas’ bet seemingly paid off on the Strip casino floors.
GGR on the Strip surged almost 23% from November 2022 to $821 million. That’s a new Strip record for November and its second-best month all-time behind this past July when gaming win totaled $834.9 million.
F1 fans fancied table games, as costly minimums didn’t faze the European high-end clientele. Felt win on the Strip jumped 62%, with baccarat most responsible as the player-banker card game won over $178.3 million for the house.
Slot win dropped about 1.3%, as the international VIPs with deep pockets didn’t fancy the one-armed bandits nearly as much as the tables. Slot revenue on the Strip totaled $410.9 million.
F1 Delivers for Strip
Despite many headaches for locals and general visitors who were barred from seeing attractions like the Bellagio fountains and were quickly escorted by security when they stopped on Strip overpasses for photos, Michael Lawton, the senior economic analyst for the Nevada Gaming Control Board, says the city’s bet on F1 was a winning gamble. Along with a November to remember on the casino floors, Strip resorts reported strong hotel bookings and subsequent resort-wide business.
The four-day period beginning on Nov. 16 was extremely profitable for both gaming and non-gaming activity on the Las Vegas Strip with some properties estimating those days established all-time record levels of revenue,” said Lawton.
Lawton conceded that luxury properties where F1 fans stayed and gambled were the biggest benefactors.
While the Strip was bustling, the downtown area where more budget-conscious travelers tend to stay saw November GGR dip 2% to $81.2 million. Table games downtown reported a nearly 7% drop in win from November 2022, as the lower-minimum games were less busy. Downtown casinos also weren’t as lucky, as the table game win rate was just 7.6% compared to 15% on the Strip.
2023 Record Year
Nevada gaming revenue through 11 months in 2023 totaled more than $14.08 billion. The odds are nearly a sure thing that when December’s numbers come in, 2023 will mark the third consecutive year of record gaming win in the Silver State.
Nevada casinos won $14.84 billion in 2022. It followed the $13.42 billion haul gamblers lost in 2021 following the COVID-19 pandemic.
The record play in 2021 and last year was partially credited to pent-up demand for leisure travel and many US residents having some extra disposable income from coronavirus stimulus programs.
2023, however, seemingly most demonstrates the resiliency of the US gaming industry, as its marquee and most critical market nears its third record year in a row.
