Independent Las Vegas Casino Takes on Clark County for Hosting F1 Race

Article by : Erik Gibbs Sep 9, 2024

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The Stage Door Casino and Battista’s Hole in the Wall, two off-Strip businesses in Las Vegas, are suing Clark County and Formula One (F1) over financial losses they claim resulted from the 2023 Las Vegas Grand Prix. These two small businesses, located near the iconic Flamingo Hotel, argue they lost “millions” due to road closures and construction tied to the event. The lawsuit, filed on September 3, seeks damages exceeding $50,000, claiming that their operations were severely disrupted in the lead-up to and during the event.

The complaint centers around Clark County’s approval process for the race. Commissioners waived certain restrictions and time limitations for the event, effectively allowing the Grand Prix to move forward without requiring a special use permit.

According to the lawsuit, this process bypassed the typical need for advance notice to nearby businesses and community input, making it more difficult for small businesses to prepare for the disruptions. Attorneys for Stage Door and Battista’s argue that this unfair treatment caused significant financial harm.

Lisa Mayo-DeRiso, a spokesperson for the plaintiffs, stated that despite months of attempting to resolve the issue with Clark County and F1 organizers, no satisfactory solution was reached. The lawsuit aims to address the financial damage these businesses have suffered and prevent them from going under due to the disruptions caused by the race.

The road closures and construction began in April 2023, with delays and blockages severely impacting the operations of both Stage Door and Battista’s. Employees, customers, and suppliers faced difficulties accessing the properties, with some vendors eventually refusing to deliver to the businesses altogether.

Trash collection, normally done daily, also became irregular, leading to further operational complications. The lawsuit mentions that rising inflation compounded the issue, preventing the businesses from offering regular raises or bonuses to their employees.

This legal action comes on the heels of a similar lawsuit filed by Ellis Island Casino, located nearby on Koval Lane. That casino alleged in an April filing that it also lost millions due to road closures and construction associated with the Grand Prix, particularly citing a temporary bridge on Flamingo Road that limited access to their property for several months.

Clark County has yet to comment on the lawsuit, and F1 officials have declined to speak on the matter, citing the ongoing litigation. However, the Grand Prix is expected to remain an annual event for at least 10 years, with the Las Vegas Convention and Visitors Authority having committed to a three-year agreement with Formula One’s parent company, Liberty Media, for a $6.5 million annual hosting fee.

For these small businesses, the financial impact of the Grand Prix has been immense, leaving them to seek legal recourse in an effort to recover their losses and ensure their survival amidst the growing pressures of major events in Sin City.