How Much Did Vegas Make on the Super Bowl?

The Super Bowl, as one of the largest sporting events globally, brings significant attention and economic activity to its host city. Las Vegas, a city accustomed to hosting major events, recently experienced this firsthand. The financial impact of the Super Bowl extends beyond the game itself, encompassing various sectors of the local economy. This article details the multifaceted revenue streams generated, providing insight into how much the city benefited financially.

Sports Betting Revenue

Nevada’s sportsbooks saw substantial wagering activity during Super Bowl LVIII. The “handle,” or total amount wagered, was a record-breaking $185.6 million across the state’s sportsbooks. After paying out winnings, the sportsbooks’ “hold” was $6.8 million, resulting in a 3.7% hold percentage. While the handle set a new record for Nevada, this hold percentage was lower than the historical average of 6.29% for the Super Bowl over the past decade, indicating that bettors had a more favorable outcome this year.

Broader Economic Contributions

Beyond sports betting figures, the Super Bowl generated a wider economic benefit for Las Vegas. The total economic impact of Super Bowl LVIII on the city was estimated at $1 billion. This comprehensive figure accounts for various forms of spending by visitors, event organizers, and related businesses. Gross visitor spending alone surpassed $877 million.

Much of this economic activity stemmed from increased tourism and hospitality. Visitors who came for the Super Bowl spent an average of $2,660 per person, approximately double the spending of a typical visitor. More than 260,000 people traveled to Las Vegas for the Super Bowl experience, contributing to increased spending across dining, entertainment, and retail.

Hotel revenues saw a significant boost during the Super Bowl weekend. Las Vegas hotels recorded their highest-ever weekend average daily rate (ADR) of $747 for the Friday and Saturday preceding the game. Occupancy rates reached 83.7% during this period, contributing to a 239.6% year-over-year increase in revenue per available room (RevPAR). The city’s over 150,000 hotel rooms were largely utilized, with many properties experiencing near-full capacity.

Tax Revenue Generated

The Super Bowl’s economic activities generated an estimated $33.6 million in tax revenue for Nevada’s state and local governments. This included contributions from gaming, sales, live entertainment, and room taxes.

Gaming taxes are a primary source of revenue for Nevada. Nonrestricted gaming licensees pay a graduated tax on monthly gross gaming revenue. Increased spending on goods and services contributed to sales tax collections, with the combined sales tax rate in Las Vegas (Clark County) being 8.375%.

Live entertainment also contributed to the tax base. A 9% Live Entertainment Tax (LET) is imposed on admission charges for facilities with a maximum occupancy of 200 or more people. Hotel room taxes in Clark County range from 12% to 13% for resort hotels and 10% to 13% for other lodging establishments. Mandatory resort fees, often charged by hotels, are also subject to a 13.38% tax.