MGM Resorts sees dollar signs with F1 racing packages
MGM Resorts has big plans for the Formula 1 Grand Prix in Las Vegas next year.
Nevada’s biggest employer is chomping at the bit at the possibilities of F1’s first Las Vegas race since 1982.
“The retail potential and its upside are substantial,” MGM Resorts CEO Bill Hornbuckle said during the company’s Aug. 3 earnings call.
Hornbuckle said room rates during the race scheduled for an as-yet-unannounced weekend in November 2023 will be three or more times higher than normal.
On Tuesday, MGM Resorts tweeted a link for interested parties to sign up to be notified when F1 weekend room packages become available for purchase.
Hornbuckle noted the potential for big money packages during the earnings call earlier this month.
“There are packages that sell for this event at $100,000 retail,” Hornbuckle said.
MGM will have an abundance of racing packages to offer, with the company planning to purchase millions of dollars worth of tickets.
“Our ticket purchase alone will cost around $20 million to $25 million,” Hornbuckle said. “We have access to those tickets and then the ability to charge how we want and package how we want… I’m pretty excited about that one.”
The Las Vegas Convention and Visitors Authority plans to spend $19.5 million over three years to sponsor F1 races in 2023, 2024 and 2025.
When announcing the F1 race in February, Governor Steve Sisolak said around 170,000 visitors were expected to come to Las Vegas for the race. The indirect economic impact of the race is expected to be in the order of $1 billion.
The race will be held on a 3.8 mile track in and around the Resort Corridor. The 50-lap race will be held under the bright lights of the Strip at night. Drivers are expected to reach speeds of over 212 mph during the race.