Formula 1’s return to Las Vegas presents a huge opportunity for hotels and casinos — and MGM Resorts is betting big on the event.
A founding partner of the race along with Caesars Entertainment and Wynn Las Vegas, MGM has access to tickets for the November 2023 race.
CEO Bill Hornbuckle told investors on an earnings call earlier this month that the company plans to purchase $20 million to $25 million in tickets, then “charge as we want and package as we want.”
- Hornbuckle said there are F1 packages that retail for $100,000.
- Hotel rooms are expected to cost triple their normal price.
MGM has benefited from Las Vegas’ emergence as a sports destination: The company offers packages of over $3,000 per person for Las Vegas Raiders games, with price fluctuations based on the opponent.
Hornbuckle also noted that the city will host Sweet 16 and Elite Eight games in the 2023 NCAA Tournament, as well as the 2024 Super Bowl.
MGM took in $3.3 billion in the second quarter, a 44% year-over-year increase and just above the $3.2 billion the company earned in Q2 2019.
The company took a $71.2 million loss on its 50% share of BetMGM, its sports betting venture co-owned 50-50 with Entain. MGM expects to contribute $225 million to BetMGM this year, and is interested in owning a greater share, though Hornbuckle noted, “You can’t buy what’s not for sale.”