Formula One boosts Nevada casinos to second-highest record in November, visitor numbers surge

In November, Nevada's casinos achieved the state's second-highest win on record, driven by robust performance and the return of Formula One racing. The Las Vegas Strip in particular reported a notable 22.6% increase in winnings compared to the same period last year, reaching $820,992,082, falling just short of the all-time high set in July 2023.

State-wide, the casinos collectively won $1.37 billion, marking a 12.5% rise from November 2022 but trailing slightly behind the record set in July, as per a KLAS report. The success was attributed in part to the Formula One Las Vegas Grand Prix, despite initial concerns and pushback due to construction and traffic disruptions.

“The four-day period beginning on November 16th 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,” Michael Lawton, senior economic analyst, was quoted as saying in the report.

“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 that are included in the $72 million or over revenue range for annual gross gaming win on the Las Vegas Strip increased by $160.0 million or 25.8% compared to last November and accounted for over 100.0% of the state’s entire increase for the month,” Lawton added.

Figures released by the Las Vegas Convention and Visitors Authority revealed an increase in tourism volume, with 3,292,800 visitors in November.

The positive trend extended to hotel room prices, reaching a record $249.31 per night, according to a report by Las Vegas Review-Journal. Additionally, key metrics like Revenue per Available Room (RevPAR) experienced substantial growth, reaching $204.18, a 34.8% increase from November 2022. The average daily room rate for Strip hotels surged by 37.7% to $270.17, while downtown Las Vegas saw a 10.6% increase to $108.67.

Harry Reid International Airport reported its best November ever, with 4.8 million passengers, contributing to a historic year with a total of 52.8 million passengers.

Despite the positive trends, it seems unlikely that the 2016 record of 42.9 million visitors and the 2019 record of 6.6 million convention visitors will be surpassed this year. The 11-month visitation total for 2023 reached 37.4 million, representing a 5.4% increase over the previous year.

The overall occupancy rate for November was 81.9%, showing a 0.7 percentage point improvement from November 2022. However, it was the third-lowest monthly occupancy rate in 2023.

As the challenge of filling hotel rooms increases with the addition of new inventory from Durango Casino & Resort and Fontainebleau Las Vegas in December, the industry continues to show resilience and growth, positioning Nevada 4.7% ahead of pace for the 2024 fiscal year.