F1 helps Nevada set November revenue record and second all-time highest

December 28, 2023 3:47 PM
Photo: Shutterstock
  • Buck Wargo, CDC Gaming Reports
December 28, 2023 3:47 PM
  • Buck Wargo, CDC Gaming Reports

Las Vegas’ Formula One race, fueled by a nearly 23% year-over-year increase in gaming revenues on the Strip, pushed Nevada across the finish line with a record-setting November and the all-time second-highest month revenue statewide, despite only a slight gain in Las Vegas visitation.

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The Nevada Gaming Control Board reported Thursday that the state’s casinos brought in $1.37 billion in revenue in November, topping the previous record of $1.32 billion in November 2021, when visitors were flush with cash from the federal stimulus.

The November statewide mark is also 12.5% higher than the $1.22 billion in revenue recorded in November 2022, an increase of $153.4 million.

The credit primarily goes to the Strip, which generated $820.9 million in revenue, a 22.6% increase over the $669.5 million in November 2022. That will bolster the argument that the F1 race the weekend before Thanksgiving, typically the second slowest weekend of the yea, was a financial boon for the city, despite the hardships over several months caused by repaving and construction that disrupted traffic and nearby businesses.

The all-time Strip record was $834.9 million set in July. Strip revenues are now up 7% for the year, with December yet to be tallied.

“The impact of the inaugural Formula 1 Grand Prix on the Las Vegas Strip, the four-day period beginning on November 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 Michael Lawton, a senior economic analyst for the Nevada Gaming Control Board. “The event’s success was more evident at luxury properties where the Las Vegas Strip’s baccarat increase accounted for 78.6% of the state’s growth this month. Additionally, the 25 licensees included in the $72 million-or-over revenue range for annual gross gaming win on the Las Vegas Strip increased by $160 million or 25.8% compared to last November and accounted for over 100% of the state’s entire increase for the month.”

Lawton added that there was even an unfavorable calendar compared to November 2022 with one less weekend day.

Despite the gains on the Strip, the rising tide didn’t lift all casinos. Downtown Las Vegas reported $81.1 million in revenue, down nearly 2% from $82.7 million in November 2022.

The Boulder Strip saw a 2.1% decline to $83.3 million, down from $85.2 million in November 2022. North Las Vegas, however, remained steady with a 0.61% increase to $23 million. Casinos that serve Las Vegas locals had a 1% year-over-year increase.

For the year, Nevada gaming revenues remain on a record-setting pace, up 4.1% over the first 11 months of 2022 when the previous record was set. November marked the 33rd consecutive month the state recorded $1 billion in gaming win and November’s total was 46.6% or $436.7 million higher than November 2019 prior to the pandemic.

Statewide total win excluding the Las Vegas Strip increased by 0.3% or $1.9 million. For the year, statewide total win is up 0.6% or $38.3 million, also excluding the Strip.

Despite the gains in gaming revenue, visitor volume wasn’t off the charts in November and rose only 27,300 over November 2022, according to numbers released by the Las Vegas Convention and Visitors Authority. The 3.29 million visitors were 0.8% higher than November 2022. Visitation was 37.4 million through November, a 5.4% increase through the first 11 months of 2022, when it was 35.5 million.

The LVCVA estimates 356,000 visitors will be in Las Vegas this weekend to ring in the new year with visitor spending projected at $411.4 million.

Besides F1, Lawton said other factors for a strong November included a SEMA auto aftermarket trade show during the first week of November. Monthly convention attendance was 598,400, a 2.7% increase over November 2022.

U2 continued its residency at the MSG Sphere from November 1 through the 4. Usher continued his residency at Dolby Live inside the Park MGM for multiple dates through the 29 of November. The Las Vegas Raiders played three home games at Allegiant Stadium on November 5, 12, and 26.

Overall hotel occupancy was 81.9%, +0.7 points year over year, as weekend occupancy reached 88.7% (-0.9% year over year), while midweek occupancy exceeded last November by 1.4 points to reach 78.9% for the month, the LVCVA reported. Strip occupancy was 85.3%, up from 83.6% in November 2022. Downtown occupancy was 65.6%, down from 70.8% in November 2022.

Driven by strong rates during the dates of the F1 race, monthly average daily rates reached a record $249, an increase of 33.7% year over year, while revenue per available room exceeded $204, up 34.8% year over year. The average daily rate was $270 on the Strip, some 35% higher than $200 a year ago.

Passenger totals traveling through Harry Reid Airport haven’t been released for November. The LVCVA reported vehicles traveling on I-15 at the Nevada and California border were down nearly 5% for the month.

The Strip’s games win totaled $410.1 million, third highest total in history, and increased 61.9% year over year. Games drop totaled $2.7 billion and increased 39.5%. November ended a streak of six consecutive decreases to games volume on the Las Vegas Strip. Games hold percentage was 15% versus 12.91% in November 2022, Lawton said.

Baccarat win totaled $178.3 million and was up $120.5 million or 208.7%. The volume totaled $938.4 million, up 90% or $444.5 million, while hold was 19% versus 11.70%. Total gaming win excluding baccarat increased 5.1% or $30.9 million compared to last year.

The Strip’s slot win totaled $410.9 million and decreased 1.3% or $5.2 million. Coin-in totaled $4.979 billion and increased 0.9% or $46.1 million.

This represents four consecutive decreases to slot win on the Strip. Prior to August, the slot win last decreased in July 2022. November ended consecutive decreases to slot volume.

Nevada sportsbooks won $41 million, up 8.8% or $3.3 million compared to November 2022 on a hold percentage of 4.5% versus 4.1% last year. Sportsbook wagers totaled $921.9 million, down 0.7% or $6.4 million compared to last November when $928.2 million was wagered statewide. Mobile wagers totaled $625 million, down 2.7% or $17.5 million and accounted for 67.8% of total wagers.

Statewide table, counter, and card games win of $505.5 million (fourth highest total all-time) increased 44.5% or $155.7 million. Games drop of $3.6 billion (second highest all-time), increased 27.9% from November 2022. Games hold percentage was 14.1% versus 12.5% last year.

Statewide baccarat win of $181.4 million increased 209.1% or $122.7 and baccarat drop of $959.1 million increased 88.9% or $451.3 million. Baccarat’s hold percentage was 18.92% versus 11.56% last year.

Total gaming win excluding baccarat increased 2.6% or $30.7 million.

Statewide slot win of $868.8 million decreased 0.3% or $2.3 million and has decreased in three of the last four months. Coin-in of $11.7 billion was up $86.7 million or 0.7%, ending a streak of consecutive decreases to statewide slot volume.

Clark County as a whole saw a 14.3% increase to a record $1.21 billion, up from $1.06 billion. Outside of Las Vegas in Clark County, Mesquite rose .02% to $15 million, while Laughlin fell 2.5% to $40.3 million.

Elsewhere around the state, Reno rose 3.5% to $58 million. Sparks recorded a slight decline of 1% to $13.8 million. North Lake Tahoe had an 8% decline. South Lake Tahoe also had a 8% decline to $18 million. Elko County recorded a 2.3% increase to $32.2 million.