Fedor Banuchi spent several days attending the inaugural Formula One Las Vegas Grand Prix a year ago, growing both determined and envious.
As senior vice president of entertainment and special events at the yet-to-open Fontainebleau Las Vegas, Banuchi wanted not just to mirror, but to surpass the longstanding partnership the resort’s sister property — the historic Fontainebleau Miami Beach — achieved with Formula One and its annual race in South Florida.
Fontainebleau’s efforts focused on a bar space on the roof of the F1 Paddock Club, an entertainment venue where spaces are leased to hospitality businesses, including casinos, inside the four-story Grand Prix Plaza building.
But he wasn’t impressed. So this year, the company hopes to up the “wow” factor.
“I can say what we brought in [for 2024] was a significant upgrade,” Banuchi said Thursday afternoon, as the Formula One drivers ran their vehicles through several practice sessions a few hours before the grandstands throughout the circuit filled with race fans.
Fontainebleau agreed with the Las Vegas Grand Prix to rebrand the space, which provides 360-degree views of portions of the 3.8-mile F1 circuit, including the start-finish line and pit lane, as LIV on the Grid, using the name of the Strip resort’s nightclub. The takeover of the rooftop space included a lounge area, multiple food options, such as steak and lobster and high-end appetizers, cocktail service, a DJ and a dance floor.
Gaming industry consultant Brendan Bussmann said the major Strip resorts see the value in bringing their best customers to Las Vegas for the event, where they can lavish them with an extravagant experience that will encourage more spending and solidify customer loyalty.
“The opportunity for this race is huge if you are focusing on the high-end customers and international guests,” said Bussmann, the managing partner of Las Vegas-based B2 Global. “This is a group that will not only gamble but also enjoy the race and the host of other non-gaming amenities during their stay in the destination.”
Two floors below the Fontainebleau space, staff was busy preparing the Wynn Grid Club for its first-night guests. The venue, set as more of a dining venue that changes out menus nightly, also has grandstand-style seating so its customers can watch the racing activity.
Wynn operated the venue during the inaugural race for its high-end customers.
“We have activations [specific events and campaigns to raise brand awareness] happening through the weekend at our property and we can shuttle those guests between the resort and the venue,” said Sherri DeSalvio, Wynn’s executive vice president of resort events and partnerships. She added that Wynn’s partnership with Ferrari provides its guests access to the racing team’s suite.
Big parties equate to big betting
For resorts with high-end play, the suites help lure big-spending players to Las Vegas.
In November 2023, high-end baccarat wagering, driven by the Grand Prix’s three days, helped push the Strip to its second-highest-ever monthly revenue total of $821 million, according to the Nevada Gaming Control Board.
Casinos’ winnings off of baccarat increased almost 209 percent to $178.3 million. Overall wagering grew 90 percent to $938.4 million. Control Board Senior Economic Analyst Michael Lawton said casinos held 19 percent of all baccarat wagers.
Meeting and matching that elevated hold percentage will be a challenge this year. Casinos typically hold between 11 percent and 12 percent of all baccarat wagers.
“Baccarat is a volatile game,” Lawton said last week. “You can’t predict how the casinos will perform.”
Wagering on the race itself wasn’t much of a factor a year ago, according to the Strip’s sportsbook operators. Dutch driver Max Verstappen had already clinched his third straight world title heading into the Las Vegas race, which kept betting interest in the event down.
This year, Verstappen, who drives for Red Bull, must finish Saturday’s race ahead of British driver Lando Norris, who competes for McLaren, to clinch that fourth straight title.
That factor has Caesars Sportsbook Vice President of Trading Craig Mucklow — the primary oddsmaker for the gaming company — believing that Las Vegas sportsbooks will see a higher amount of betting on the race than a year ago.
Mucklow said Caesars has added parlay wagering on the drivers and other betting enhancements on the race that allow racing fans to bet on any combination of first-, second- or third-place finishers. He suggested that fans using mobile wagering on their phones while watching the race at the track or parties could drive up the betting handle.
“Formula One, and motorsports in general, have grown in popularity,” Mucklow said, adding that NASCAR racing is the most bet-on auto racing event. “Given the competition [for the title] and given that the race is in Las Vegas, I wouldn’t be surprised if the race pulls NASCAR-like betting numbers.”
Exactly how much betting it attracts will remain a mystery after the race.
The control board only breaks out monthly and year-end wagering totals for football, basketball, baseball and hockey. Motorsports events are included in the “other sports” category, along with UFC, boxing and golf.
In November 2023, “other sports” produced $6.4 million in gaming revenue, up 10.7 percent from a year earlier. Wagering increased by almost $4 million to $75.5 million, which Lawton attributed to the Las Vegas Grand Prix.
Banuchi said Fontainebleau brought in its best customers to spend the weekend at the 3,700-room resort. The resort and other casinos with lavish hospitality suites shuttle their customers between the resort and Grand Prix Plaza.
Fontainebleau also took over a smaller space on the first floor of the plaza and themed it after its Papi Steak restaurant. Restaurant owner David “Papi” Einhorn was there on day one to greet visitors at the location near the end of pit row, which offers an up-close experience as the F1 cars speed by as they merge onto the track.
Banuchi said the company’s experience with F1 in Miami helped in the planning for Las Vegas. Fontainebleau Development CEO Jeffrey Soffer forged a relationship with F1 and the Miami Beach resort became a headquarters for several teams participating in the Formula 1 Crypto.com Miami Grand Prix in May.
Given the Miami event is roughly 30 minutes north of Miami Beach, Fontainebleau has experience in getting customers to and from the race.
In addition to the LIV and Papi Steak lounges, Fontainebleau purchased tickets for 50 customers to view the race from a suite operated by the Aston Martin race car team, one of the resort’s promotional partners.
“Formula One brings a crowd like no other,” Banuchi said. “We are a luxury property and the race [appeals to] a high luxury crowd.”
A view of the Formula 1 Las Vegas Grand Prix track with the Sphere in the background, left, and the Koval Lane and Flamingo Road Grandstands, right, lining the Koval Lane straightaway are viewed from the Heineken Beer Tower ahead of Formula 1 Las Vegas Grand Prix on Nov. 20, 2024. (Jeff Scheid/The Nevada Independent)
Venues spring up away from the plaza
Separate from the plaza, several companies sponsored venues along the course that included admission to the venue and a ticket for a non-reserved seat in the grandstand along with special entertainment.
Heineken Beer took over a stretch along Koval Lane to Flamingo Road where it constructed the Heineken Trophy Tower. Ticketed race fans can go up six stories above the long straightaway for views looking north toward the Sphere and south toward turn 4, where the race cars leave the plaza area.
Caesars Entertainment leased space on the top floor of the paddock to entertain customers who wanted to be in the center of the racing action.
But the casino company, which has eight resorts situated along the Strip’s 2-mile stretch of the racing circuit, has events such as race-viewing parties at many of the properties, including in sportsbooks and convention areas as well as in Giada De Laurentiis’ restaurant on the second floor of The Cromwell.
Caesars also created grandstands at the front of Caesars Palace.
MGM Resorts International, which attributed its fourth-quarter record Strip revenue to its temporary Bellagio Fountain Club, brought back the three-level, ultra-luxury trackside experience that included rooftop viewing of the race and meals prepared by the company’s celebrity chefs.
This year, MGM more than doubled the number of chefs to 20 and removed the grandstand seating in favor of additional F1-themed entertainment options on the first level and space for the company’s hotel partner, Marriott Corp., to provide activities. New activities, including DJs providing music for dance floors, were added to the rooftop deck, which is the size of two football fields.
Grandstand seating was moved next door to the pool deck of the Cosmopolitan Las Vegas, to take advantage of the circuit’s final turn from the Strip to Harmon Avenue, leading to Grand Prix Plaza and the start-finish line.
MGM’s multiple locations on the Strip is a big advantage for the company, Bussmann said.
“MGM has the benefit of being able to take care of its high-end players immediately on the property at Bellagio as they sit right in the middle of the track,” Bussmann said. “However, they have the added expense of constructing that venue each year.”
MGM Vice President of Citywide Events Andrew Lanzino said the club’s popularity allowed the company to increase the price of its three-day tickets from $11,000 to $12,500, which sold out. The space holds 3,600 guests, including MGM’s staff.
“The chefs were a huge hit for our guests,” Lanzino said, adding the venue draws from all of MGM’s Strip resorts and guests from other casinos, some of whom were signed up for the MGM rewards program on the spot.
Tickets in The Cosmopolitan’s grandstand, which featured food and beverage offerings from Cosmopolitan chefs, were still available early in the week for as low as $150.
“We made the Fountain Club more elevated but we still wanted to have the ability to welcome other guests and locals,” Lanzino said. “We’ve done a great job with viewing parties over the years such as for the Super Bowl. We wanted to take Formula One up to another level.”
