With regard to the race itself, Mercedes’ George Russell and Lewis Hamilton secured the first and second positions. Last year’s winner, Red Bull’s Max Verstappen, finished fifth, a performance sufficient to clinch his fourth consecutive F1 title.
Stakeholders and analysts are now eagerly awaiting the financial outcomes from the second iteration of the event. Previously, Applied Analysis estimated the economic impact of the race to be $1.5 billion (£1.19 billion/€1.43 billion), marking it as the largest in Las Vegas’ history. However, this year’s projection is expected to be less than $1 billion.
Despite breaking records last year, the race was not devoid of drama. Construction and road closures led to significant traffic delays and resulted in business disruption lawsuits for some. The city’s “Big Three” operators—Wynn Resorts, MGM Resorts, and Caesars Entertainment—faced a looming strike deadline from the Culinary Union just days before the race.
Ultimately, Culinary’s leverage proved effective, as the union secured new five-year agreements with all three operators. Approximately 40,000 workers from 18 properties received new contracts that include 32% wage increases over the contract period and several additional benefits. Culinary employed a similar tactic in February before the Super Bowl to secure contracts from several independent operators across the city.
When the union began its strike against Virgin Hotels Las Vegas on November 15, it seemed like the trend would continue. However, that was not the case.
## Strike Nears Two-Week Mark
As of November 27, Culinary remains on strike at the off-Strip casino. Virgin Hotels has accused the union of attempting to strong-arm its way to a contract it claims is not economically feasible. This presumably references the terms of other agreements finalized in the past year.
### Dispatch from the Strike Line: Day 12
The contract at @VirginHotelsLV expired on June 1, 2023. The Union is maintaining 24/7 strike stations with multiple picket lines around Virgin LV. Cancel the reservation! Check out of the property! Choose a union hotel!
— Culinary Union (@Culinary226), November 26, 2024
On November 21, 57 Culinary members, including leadership, were arrested during a planned demonstration. Virgin Hotels described the demonstration as a “disappointing” strategy to garner media attention and photo opportunities.
“It is even more disappointing that Culinary Union leaders are willing to occupy critical police resources during one of the busiest weeks on the Las Vegas entertainment calendar,” the statement continued. “We believe that rather than being used as part of the Culinary Union’s theatrics, our first responders should focus on keeping the local community and visitors safe.”
## Was It Always This Way?
As Las Vegas continues its growth and evolution, so does its relationship with unions like Culinary. Richard Schuetz, CEO of American Bettors’ Voice and a seasoned casino executive and regulator, first arrived in Las Vegas in the early 1980s. At that time, Culinary’s membership was far smaller, and the industry leaders were not particularly attuned to workers’ concerns.
“It has always been my contention that the industry in Las Vegas ended up with unions because they deserved to end up with them,” Schuetz told iGB. He noted that the prevailing mindset was “basically not to trust people,” which fueled animosity and has fostered union growth since then.
Las Vegas has evolved into a union capital of sorts, given that hospitality is the state’s largest industry. Several milestones marked this evolution, such as the famed Frontier strike. This strike lasted from September 1991 to February 1998, making it one of the longest and most notable in U.S. history and ultimately, a success for Culinary and its fellow striking unions.
Another milestone came in late August when the Venetian-Palazzo agreed to its first union deal, officially unionizing the entire Las Vegas Strip and boosting Culinary’s membership to over 60,000.
## Knowing When to Pick Your Battles
While the Venetian deal was significant, it’s crucial to understand the underlying context. Before Adelson’s death, the casino’s previous owner, Las Vegas Sands (LVS) founder Sheldon Adelson, staunchly opposed unionization. It wasn’t until the casino sold to Apollo Global Management that the union made inroads. Apollo, lacking experience as a casino operator, was uninterested in labor disputes amidst its efforts to maximize its multibillion-dollar investment.
This aspect is another theme in Las Vegas’ union evolution. As the industry attracts more outside investment and casino leadership changes hands, the willingness to battle unions has decreased, particularly among companies seeking recovery. When Schuetz took over a struggling Stratosphere in 1996, labor unrest was among the least of his concerns.
“Early on, I contacted John Wilhelm of HERE and, over lunch with him and Dee Taylor of the Culinary Union, we basically resolved all issues,” he explained. “The last thing I needed at the Stratosphere was labor unrest.”
This sentiment of mutual respect is striking and feels remarkably distant compared to today’s environment. The simplicity of two sides reaching an agreement over a meal also seems to be a thing of the past.
## Hard to Tell Whether Pattern Will Continue
The dueling statements and dramatic demonstrations tend to inflate the importance of negotiations. In the case of last year’s F1 and Super Bowl, they were indeed significant. However, Las Vegas-based consultant Brendan Bussmann argues that the labor contract cycle is ultimately predictable.
Bussmann, who previously worked for LVS, stated the process is often overblown. Both sides are aware of deadlines and demands, and sometimes the clock runs out before a deal is made, resulting in strikes. Still, things generally settle down until the next negotiation.
“It is a cycle that has existed in the 20-plus years I’ve been in Vegas,” he said. “It hasn’t changed.”
While Bussmann acknowledged Culinary as a formidable political force, he questioned whether it is more powerful than in the past. The lack of success with its event-deadline strategy this time is noteworthy. Another example could be the recent presidential election, traditionally union-backed.
This year, Culinary worked closely with the Harris-Walz campaign in Nevada, often a contested swing state. According to the secretary of state’s office, Harris won Clark County by a 50%-47% margin, a six percentage point decrease from 2020 when Joe Biden won 53%-44%. Ultimately, the state flipped in favor of Republican candidate Donald Trump.
Schuetz, however, remains convinced of the union’s strength.
“The unions are unquestionably more powerful than before,” he contended. “Plus, they have become incredibly potent politically. They maintain a strong, and I mean strong, get-out-the-vote program. They are smart, well-funded, and believe deeply in their cause.”