Las Vegas Businesses Seek Compensation after Formula One

Local businesses in Las Vegas, particularly in the Flamingo Road-Koval Lane-Harmon Avenue area, seek compensation after losing an estimated $23 million during the inaugural Formula One Las Vegas Grand Prix in November. While the event brought many new visitors to the Strip, many businesses could not take advantage, suffering from troubled organization and ongoing traffic issues.

Persistent Changes Had Unfortunate Side Effects

Las Vegas, known for its vibrant entertainment scene, faced challenges as Formula One road closures affected local businesses, leading to significant financial losses. Lisa Mayo-DeRiso, president and CEO of Mayo & Associates, addressed the Las Vegas Convention and Visitors Authority (LVCVA) board, appealing for support for businesses that suffered during the event.

The impacted businesses, including Jay’s Market, Battista’s Hole-in-the-Wall restaurant, Ferraro’s Ristorante, and the Stage Door Casino, reported significant revenue declines and operational challenges during the Formula One event. Gino Ferraro, owner of Ferraro’s Ristorante, highlighted a loss of over $2 million in revenue and emphasized the impact on local employment.

How can our Las Vegas leadership allow local businesses to struggle and suffer for a three- or four-day event? Who profited? A few hotels? It doesn’t make sense.

Gino Ferraro, owner of Ferraro’s Ristorante

Mayo-DeRiso, representing nine venues that suffered the highest downturn, urged the removal of a temporary bridge on Flamingo Road constructed for the Formula One event. Additionally, she proposed the establishment of a small business recovery fund to reimburse the estimated $23 million in losses incurred due to road closures, helping the businesses get back on their feet.

Authorities Must Better Assess the Impact of Such Events

While government entities cannot act on matters raised during public comment sessions, the businesses hope to raise awareness and seek compensation for the losses incurred. Mayo-DeRiso is planning meetings with county officials to discuss dismantling the temporary bridge and establishing a fund to compensate affected businesses, emphasizing the need for transparency and collaboration between the business community, local authorities, and event organizers.

The businesses affected by road closures expressed concerns about canceled reservations, reduced customer traffic, and financial setbacks, raising awareness regarding the impact of other future high-profile events. The call for a recovery fund reflects a broader conversation about supporting businesses affected by large-scale events and ensuring the sustainability of the local economy.

I ask you do the right thing for these businesses, our city, and the future of events in Las Vegas.

Mayo-DeRiso, president and CEO of Mayo & Associates

The outcome of discussions between business representatives, local authorities, and event organizers will likely influence the approach to future events in Las Vegas. While F1 2023 significantly contributed to the city’s financial success, this recent development demonstrates that organizational changes can have unforeseen consequences and disproportionately affect different businesses, necessitating a more thoughtful approach.