F1’s high-stakes gamble on Las Vegas GP is already paying out

WWhen Formula 1 stepped up to promote a Grand Prix in Las Vegas, the sport was taking no small gamble on success and the bigger picture to finally break America. With the race entering its second year, playing host to a potential championship decider and the city awash with enthusiastic fans, all indications are that they have backed a winner.

There was enormous risk involved in staging a Grand Prix, especially one that required a $700 million investment and involved agreements between casinos, corporations and local governments to run it through the heart of the Nevada city. Last year they succeeded, albeit after the initial PR disaster of a loose water valve cover crashing into Carlos Sainz’s Ferrari, ending the first practice session prematurely. The race that followed was one of the best of 2023, praised by drivers and fans.

There is now a sense that the event is special, an atmosphere that limitless petrodollars simply cannot buy, and everyone feels it. Despite all the late start times and the carrying schedule, the teams are energized by the setting. The track, illuminated by the sights of Las Vegas Boulevard, the Strip, gives it a unique backdrop, a world away from almost any other race.

What will boost F1 will be immediately noticeable in Vegas for this second outing, especially the number of fans creating an exuberant atmosphere in a city that almost exists to party, with the sporting element of an entertainment spectacle in prospect. the breed.

This won’t be to everyone’s taste, but if F1 wants to embrace the hoopla, it makes sense to do so in Vegas. In F1 there must be room for classic racing circuits, but also for the future of the sport, which appeals to new fans. Once Max Verstappen has claimed his fourth consecutive title just before midnight on Saturday, local time, the festive atmosphere will not be more perfect than in a city where every victory matters.

It is also a showcase for Formula 1 in the United States, which Emily Prazer, Chief Commercial Officer for F1 and for the Las Vegas Grand Prix, describes as the “key strategic growth market”. Therefore, the race should also be considered a success, as the race has retained a sense of occasion after the first flourish of the first year.

Purists may shy away from it, but the Las Vegas Grand Prix on the track feels like no other. The cars look beautiful as they speed through the streets. Night races are no longer something new, but the cityscape is the star here, fitting for a city that is all about show and business.

Spotlights cross the sky in competition with the shiny, pixelated bauble of the Las Vegas Sphere and the lights of the hotels and casinos. Too much sensory overload? It’s good for Vegas, maybe not for Silverstone, but, as Dorothy pointed out, we’re not in Kansas anymore.

Last year there were problems and the locals were not as easy to calm down as the drivers. Road closures and the inconvenience associated with closing off large parts of the city center, longer journey times and track restrictions that took customers away from their businesses left many Las Vegans wondering if it was worth it.

Las Vegas GP CEO Renee Wilm calls “a turnaround in local sentiment” and that they are starting to “get” F1, but even cursory conversations with taxi drivers and casino workers suggest there is still a lot to be gained.

However, the bottom line has made a strong argument that it will. Sales of between $1 billion and $1.7 billion had been forecast for 2023 and a post-race report by Clark County local authorities estimated the economic impact at $1.5 billion (£1.19 billion). That translated into an additional $77 million in tax revenue, $22 million of which went to local schools, coming from a previously quiet weekend that saw the lowest hotel room occupancy of the year for Las Vegas. That’s an important metric for everyone who works in the city, not just casino owners.

“If you look closely at the figures, it is definitely noticeable among the local population,” says Wilm. ‘We are here to stay. We are here to be part of the community and to give back both economically and in other qualitative ways.”

F1 has also responded to criticism. There was a fuss about ticket prices, with the luxury hospitality packages costing tens of thousands of pounds receiving negative press last year. It’s virtually impossible to compare one with the other, as there are no suites for sale at the Bellagio at the Hungaroring anyway, but the average price for a three-day ticket last year was $1,667 (£1,332). F1 has increased the number of general admission tickets to 13,000, at the expense of some more expensive hospitality packages. Tickets for Thursday’s practice started at $99.

So Formula 1 is clearly willing to bend as it finds the best ways to manage what remains a work in progress on the Strip. There is still refinement to be done, but with the intention of hosting a Grand Prix here for at least a decade, this means F1 has a strong hand in Vegas.