Las Vegas was recently named to host Super Bowl LVIII. The Big Game kicks off at Allegiant Stadium on Feb. 11, 2024.
Steve Hill, CEO and President of the Las Vegas Convention and Visitors Authority (LVCVA) said:
“An event of this magnitude combined with the energy of Las Vegas is going to be unmatched. Our entire city is committed to making Super Bowl LVIII the most electrifying sports spectacle ever.”
Hosting the Super Bowl was always a part of the plan with the building of Allegiant Stadium. Nevada earns tax revenue from regularly scheduled concerts and games.
The Super Bowl will bring even more revenue and media attention to Las Vegas and Nevada.
$500 million economic impact?
The Super Bowl is more than just another game to the host city. There is typically a significant economic impact. Hosting the Big Game will also positively affect a vibrant Las Vegas gambling landscape.
The LVCVA says Nevada should see $500 million from hosting Super Bowl LVIII. For comparison, the economic boost for the 2019 Super Bowl in Miami was $572 million.
Maury Gallagher, chairman of the Las Vegas Super Bowl Host Committee confirms the state has always had eyes on hosting a Super Bowl. In a statement, Gallagher says:
“From the moment Allegiant Stadium was approved, we knew it was only a matter of time until Las Vegas welcomed the Super Bowl.”
In addition to Gallagher, the Las Vegas Super Bowl Hosting Committee includes elected officials, Raiders leaders, and representatives from the two largest casino operators in Nevada:
- Jeremy Aguero, Chief Operations and Analytics Officer for the Las Vegas Raiders
- Anthony Carano, President/COO of Caesars Entertainment
- Clark County Commissioner Jim Gibson
- Steve Hill CEO/President of the LVCVA
- Virginia Valentine, President of the Nevada Resort Association
- Dan Ventrelle, President of the Las Vegas Raiders
- Steve Zanella, Chief Commercial Officer of MGM Resorts International
This is the group to help Nevada see that $500 million economic impact. The LVCVA says, “Super Bowl LVIII will significantly benefit the greater Las Vegas area and the entire State of Nevada” in a few different ways:
- Direct spending
- Additional tax dollar generation
- Increased room occupancy
- Job creation
Gallagher says Nevada should see $70 million in tax revenue alone.
Las Vegas is a unique city perfect for enjoying Super Bowl and there will be an impact beyond dollars and cents.
The economic boost could be lower, but still significant
Not to rain on a parade of good news, but the LVCVA says the actual economic impact from hosting the Super Bowl will be less than $500 million.
Hill told the Las Vegas Review-Journal (LVRJ) that he “estimates the cost for the Las Vegas host committee will run between $55 million and $60 million.”
Subtract the cost from the possible $500 million in revenue to get the net economic impact for Nevada.
Super Bowl weekend is a huge revenue generator from Las Vegas. According to the LVRJ, more than 300,000 people visited Las Vegas for the 2019 Super Bowl. That was good for an economic impact of $425 million.
When the city hosts Super Bowl LVIII, there will be an influx of people arriving in Las Vegas for a longer duration including, international media, corporate sponsors, NFL staffers, and football fans.
Add to that an entire week of media and league activations that will increase economic activity in Las Vegas even more. In addition, there will be events every day leading up to the Big Game.
It is difficult to predict how much more revenue hosting Super Bowl will bring to Nevada. The impact may not be as much or measurable compared to a different city.
Raiders could reduce revenue as a home based team
Ironically, Nevada could lose money if the Las Vegas Raiders make the Super Bowl in 2024. According to the Nevada Independent, the state could lose more than a million dollars due to the state’s Live Entertainment Tax.
The 9% Live Entertainment Tax doesn’t apply to teams based in Nevada. Depending on ticket sales this tax revenue should be more than $1 million and that would be lost if the Raiders make the Big Game.
However, hosting Super Bowl LVIII will bring positive media exposure and visitors to Las Vegas. The added exposure will complement the budget that the LVCVA spends millions of dollars a year on media to draw visitors.