Las Vegas F1 Race Money Impact Falls to $934 Million as Local Businesses Take Legal Action

The future of the Formula 1 Grand Prix in Las Vegas faces even more questions after the financial impact of the 2024 event. Race organizers said it had an economic impact of $934 million, a drop from the $1.5 billion example from 2023. The drop was in part because of a $500 million bill for F1's pit building and decreased anticipated return in Year 2. Local businesses, however, believe the impact is greater.

Many reported losing millions of dollars in revenue from race-related construction and limited access to customers. Several of those businesses have filed lawsuits against Clark County and Formula 1, seeking compensation for their financial setbacks. "I spoke with some of the top economists across the country, and they say a more important and accurate number is the net gain to a market," said consultant Lisa Snel. "The F1 folks and their consultant don't really share information about all the financial downsides that need to be factored in."

Consultant Lisa Mayo DeRiso added that ongoing construction continues to obstruct access and negatively affect sales. Las Vegas Grand Prix President Emily Prazer has acknowledged the tension, suggesting a possible settlement. Clark County has declined to comment due to pending litigation.

Despite the controversy, Formula 1 and the Las Vegas Convention and Visitors Authority are pushing for a seven-year extension, which Clark County officials are now considering. To help mend relations, organizers have introduced changes, including shorter setup times and more affordable ticketing options for locals.

Marta Soligo, a UNLV hospitality professor, reiterated that community buy-in will be essential for the event's sustained success. As the city weighs the expenses and advantages of hosting Formula 1 for the long term, the upcoming decisions may not only define the race but also the economic and civic landscape of Las Vegas.