In 2023, the Las Vegas Strip circuit became the latest addition to the Formula 1 racing calendar. While this track has been welcomed by fans, small businesses affected by the necessary construction of the circuit have filed legal action against F1, claiming to have been negatively affected by the changes.
From drivers to circuits, the world of Formula 1 is overwhelmingly set in and around Europe. Thus, the sport attracts a predominantly European audience. However, in the recent years, formula racing cars have been gaining substantial popularity in the United States, so much so that within the last two years two new circuits, and consequently races, were added in America.
The Las Vegas Strip is a 3.8 mile 17-turn street circuit that encompasses the Las Vegas Boulevard and passes iconic locations such as Caesar’s Palace and the Venetian.
“This is one of the most aggressive programs of construction and design I’ve seen,” Terry Miller said, a project manager for the Grand Prix.
In order to achieve a smooth finish for the track, the road work entailed removing 5 to 10 inches of road, replacing it with a denser pavement and adding a smooth racing layer.
Amid the sport’s already rising popularity, the addition of yet another American race attracted even more U.S.-based fans. The Las Vegas Grand Prix averaged 1.3 million viewers on ESPN in the U.S. alone, which at the time became the most-viewed race since the Canadian GP.
Despite a seemingly successful turn-around, small businesses around Las Vegas have spoken out in protest of the event, alleging that construction has been detrimental to their daily function.
Ellis Island Hotel and Casino became the first business to sue both F1 and Clark County over claims of lost profits. Although since then three claims were dismissed by a judge due to lack of clarity within the lawsuit, seven more businesses claim that “the construction improperly shut out customers and vendors from the property” causing them to lose millions in revenue.
The businesses jointly state that due to the lengthy construction, the customers either avoid the area or are unable to find a way to enter the shops.
Randy Markin, an owner of Battista’s Hole in the Wall and the manager of the Stage Door Casino, both of which are participants in the suit, told a local news channel that his businesses lost approximately $5 million last year.
The businesses have asked F1 for a combined $25 million to cover the losses suffered last year. Markin added that F1 representatives were provided with tax statements that demonstrated the losses but failed to provide a counteroffer.
“We are not trying to make any extra money on this,” Markin said. “We just want the money that we lost.”
F1 spokespeople explained that many challenges faced last year were a result of a first-time construction and “the level of inconvenience that’s been caused…is not going to be repeated.” Locals have been warned about lane closures and delays beginning Sept. 2. The construction is expected to last around three months, as compared to last year’s nine months.
