Las Vegas Business Owners Demand Compensation Following Formula One Event

Local businesses in Las Vegas are seeking compensation for the estimated $23 million they lost during the inaugural Formula One Las Vegas Grand Prix in November. The event brought new visitors to the Strip, but many businesses in the Flamingo Road-Koval Lane-Harmon Avenue area could not take advantage and suffered from troubled organization and ongoing traffic issues.

The road closures due to the Formula One event had a significant impact on local businesses, leading to financial losses. Lisa Mayo-DeRiso, president and CEO of Mayo & Associates, appealed to the Las Vegas Convention and Visitors Authority (LVCVA) for support for the affected businesses. Several 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 event.

Gino Ferraro, owner of Ferraro’s Ristorante, emphasized the impact on local employment, highlighting a loss of over $2 million in revenue. He questioned why local businesses were allowed to struggle for a three- or four-day event, and called for better assessment of the impact of such events.

Mayo-DeRiso urged for the removal of a temporary bridge on Flamingo Road, constructed for the Formula One event, and proposed the establishment of a small business recovery fund to reimburse the estimated $23 million in losses incurred due to road closures.

While government entities cannot act on matters raised during public comment sessions, the businesses hope to raise awareness and seek compensation for their losses. Mayo-DeRiso is planning meetings with county officials to discuss dismantling the temporary bridge and establishing a fund to compensate affected businesses.

The businesses affected by road closures expressed concerns about the impact of other future high-profile events and called for the support of businesses affected by large-scale events. The outcome of discussions between business representatives, local authorities, and event organizers will likely influence the approach to future events in Las Vegas. While the Formula One event contributed to the city’s financial success, this recent development demonstrates the unforeseen consequences of organizational changes and the need for a more thoughtful approach.