Golden Entertainment says Las Vegas Grand Prix didn't help The Strat's bottom line as revenue dipped in 2023

Golden Entertainmet's STRAT Hotel, Casino & Tower and other properties in the gambling mecca didn't realize the expected benefits from the F1 Las Vegas Grand Prix, but the company anticipates broader advantages in the next iteration. The remarks came as the company announced a revenue drop for the full year 2023.

Blake Sartini, Chairman and CEO of Golden Entertainment, expressed his perspective during an earnings call on Friday, stating: “Even though we didn’t participate in what we expected to be the upside, I personally think it was a great event for the city,” Las Vegas Review-Journal reported.

“It was a worldwide event for the city the way it was packaged on TV, particularly internationally. So I think taking one for the team last year was probably something that, knowing what we know now, we would do again. But going forward, we want to work with them to be more involved in the activity around that week or 10 days,” Sartini said.

Charles Protell, President and CFO of Golden Entertainment, said that profits at the STRAT were $800,000 lower than the same period in 2022.

“Unfortunately, we did not see any benefit from the Formula One initial race in Las Vegas. We think there’s quite frankly a lot of things that they could do to broaden the appeal and the audience for F1 — not only to our customers but to locals here in Las Vegas,” he was quoted as saying in a KLAS report.

Among the major adjustments suggested are the introduction of individual day tickets instead of package sales, more dedicated casino areas for easy race access for guests, and earlier start times.

The 2024 Las Vegas Grand Prix is slated to occur from November 21 to 23 on the familiar 3.8-mile street circuit, encompassing sections of Las Vegas Boulevard, Koval Lane, and Harmon and Sands avenues. Acknowledging the necessity for more affordable tickets, F1 announced a new general admission zone with the lowest price point.

As for Golden Entertainment, looking ahead to 2024, the company is focusing on business realignment, completing room renovations and expanding its tavern portfolio, set to reach between 90 and 100 establishments.

Protell reported the addition of three to four taverns this year. The company, known for brands like PT’s, PT’s Gold, Sierra Gold, SG Bar, and Lucky’s, achieved a 25% return on investment for the last eight taverns acquired or built. Tavern revenue saw a 3% increase in 2023, with profits rising by 4%.

Moreover, Golden Entertainment is gearing up to unveil Atomic Golf, a 99,000-square-foot golf experience featuring 103 digitally enhanced golf bays, six full-service bars, and chef-curated menus.

As for the casino segment, prioritizing foot traffic to the STRAT, the company engaged in talks with developers regarding a six-acre plot across Las Vegas Boulevard, eyeing a new attraction. Potential developments include a non-gaming hotel, apartments/condos, or an entertainment project.

For the fourth quarter, the company saw $231 million in revenue and a $48 million profit, an 8.8% drop compared to 2022. Golden Entertainment's 2023 overall revenue of just over $1 billion marked a decline from $1.12 billion the previous year.

Protell highlighted that room renovations at the STRAT resulted in 125,000 room nights being unavailable, representing a potential loss of $40 million in revenue and $20 million in profit.