F1 Jackpot: Las Vegas GP Rakes in $1.5 Billion

The inaugural 2023 Las Vegas Grand Prix delivered a massive economic windfall for the city, according to a new report from Clark County. The highly anticipated Formula 1 race, which took over the iconic Las Vegas Strip, generated a staggering $1.5 billion in revenue.  

Visitors attending the Las Vegas GP spent an average of $4,100 per trip and stayed 4.1 nights on average, about 3.6 times higher than typical Vegas tourists. The cumulative amount racked up to $884 million. While accommodations and entertainment were costly, the biggest expense was likely race tickets themselves, which were not included in that $4,100 figure.

The event brought considerable preparations in terms of infrastructure, with road closures and construction impacting local residents and businesses in the leadup.  Direct spending by F1 and race operations totaled $329 million, including $88 million on public infrastructure upgrades.

In effect, employment numbers saw a huge boost, with the Grand Prix supporting over 7,300 jobs. This included 2,200 for race-related infrastructure development and 5,100 additional positions needed for event operations and visitor services. Local worker wages for the first year added up to $52 million.

For local residents, the months of roadwork and street closures were a disruption, with the transportation authority rerouting over two dozen bus lines and causing hourlong delays. Some businesses complained loudly about the impacts. However, the tax revenue of $77 million generated by the Las Vegas GP set a new record for a single event in the city.

Not everything went smoothly, with fan lawsuits over limited track viewing times during practices. Environmental remediations are needed, including raising a dozen manhole covers that caused issues in 2023. But overall, the event looks poised to continue through at least 2025 under the initial contract, with hopes of extending it through 2033.

Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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