Clark County Releases Debriefing Report on Las Vegas Grand Prix

Clark County staff has compiled a comprehensive debriefing report on the Formula One race held on 18 November, shedding light on the event’s economic impact that brought significant financial gains for some while causing hardships for many small businesses along the Strip. The results should provide valuable takeaways for future races, helping reduce costs and share economic benefits.

Not All Businesses Benefited from the Race

The report, presented to the Clark County commissioners, revealed a stark contrast between the “big winners and big losers” from the Las Vegas Grand Prix. Formula 1, owned by Liberty Media, reported substantial ticket sales for the three-day event, generating considerable tax revenue for the county. However, the high ticket prices prevented many locals from attending, limiting community participation.

According to the debriefing report, the race event generated an impressive $77 million in tax revenue. While these figures underscored the event’s financial success, they also highlighted the disparity between large corporations and small businesses that suffered significant losses due to the race’s barriers and fencing, which hindered customer access to their establishments.

Testimonies from affected businesses underscored the adverse impact of the race on their revenues and operations. Traffic congestion in the months leading up to the event resulted in millions of dollars in lost commerce and worker time, exacerbating the financial strain on smaller establishments. Many business owners expressed frustration over the county’s decision to prioritize the interests of Formula One over the well-being of local businesses.

Future Events Must Resolve Substantial Challenges

One of the most significant revelations from the report was the extensive time and resources spent by the Clark County government on processing event permits and applications. County staff dedicated over 17,000 hours to F1 race-related work, resulting in a net loss of roughly $500,000 despite the substantial tax revenues.

Despite the race’s underlying economic challenges, Formula One has remained steadfast in its plans for future events. The Las Vegas Grand Prix organizers have pledged to address concerns raised by local stakeholders and minimize future disruptions. However, questions linger about the overall benefit of hosting such events and whether they truly serve the best interests of Las Vegas.

The county has provided helpful feedback and recommendations for a smoother implementation this year, and we have already begun addressing those recommendations.

Betsy Fretwell, Las Vegas Grand Prix chief operating officer

While county commissioners discussed logistical issues related to race permitting, they stopped short of addressing whether the F1 race was fundamentally beneficial for the broader Las Vegas community. Moving forward, stakeholders will continue to explore ways to mitigate its adverse effects on small businesses while maximizing its potential benefits for the community.