From a pure racing perspective, the 2023 Las Vegas Grand Prix was a huge success. It was one of the best races in the season that just concluded. However, it was not all roses when it came to everything else. While the broken drain cover issue that cost Ferrari a whopping $2.2 million was a major talking point and cause for concern, there are other aspects of the race that need looking into as well.

The Las Vegas Grand Prix was definitely a financial juggernaut for Sin City. It helped MGM Resorts break the all-time records for hotel revenue in the resort’s history. However, despite this, local businesses didn’t receive anything substantial but did suffer from collateral damage in the build-up to the Grand Prix as well as during the race weekend.

Hotels succeed, but Las Vegas businesses suffer: A tale of contrasts

MGM Resorts, the behemoth of the hospitality industry in Las Vegas, proudly announced historic revenue records stemming from the Grand Prix weekend. Jonathan Halkyard, the Chief Financial Officer of MGM, compared the event’s success to the iconic 2019 CES trade show. However, beneath the surface of celebrations, discontent simmered among the locals.

While the Grand Prix brought unparalleled success for MGM’s hotels and casinos, Formula 1 fans expressed concerns about the collateral damage suffered by many other businesses in the vicinity. They took to social media to voice their disappointment, pointing out the dominance of mega-casinos at the expense of the rest of the city. Pricing strategies employed by MGM Resorts during the F1 weekend also drew criticism from fans.

The leader of several productions on the Strip, Ross Mollison, Impresario Extraordinaire of Spiegelworld, wrote an open letter addressing logistical concerns surrounding the Grand Prix. Mollison’s shows, including Absinthe, Atomic Saloon, and Opium, collectively lost a staggering $500,000 during the week of the F1 event. As reported by MSN, he wrote, “I love this event. However, can we please take into account all the businesses in Vegas, including hospitality and live entertainment, when making decisions for next year?”

Mollison added, “It’s not just live entertainment that I think was really hit hard. A lot of restaurants were really hit hard. Our sales have bounced back from the week that was F1, which was really, really tough for us.” A key proposal in Mollison’s letter was an earlier start time of 3 p.m. He argued that the late start time not only inconvenienced fans who endured cold night temperatures but also hindered tourists and families from experiencing the vibrant nightlife on the Las Vegas Strip. By starting the race earlier, Mollison believes everyone would benefit, contributing to a more dynamic and profitable event for everyone involved.

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Fans are up in arms about F1 moving for a more comprehensive approach, where a potential win-win scenario could emerge for all the stakeholders involved.

The need for a comprehensive approach in future Las Vegas Grands Prix 

As Formula 1 continues to gain popularity in the United States, finding the right formula for hosting successful events without compromising the well-being of local businesses becomes crucial. Mollison’s proposal for an earlier start time is not just a logistical suggestion but a plea to strike a balance between the entertainment spectacle and the economic vitality of the local community.

The success of the Las Vegas Grand Prix should not be solely measured in terms of hotel revenue records. A more comprehensive approach that considers the needs of local businesses, fans, and the overall community is imperative for the sustained growth of F1 events in Las Vegas. However, it is essential to understand the rationale behind hosting the race at the late hours as well. F1 took into account the fact that a vast majority of its European fans might not be able to watch the race if it started earlier.

However, it is important for the sake of continued success that F1 and Liberty Media take a serious look at coming up with a comprehensive approach that can help local businesses gain and not suffer from significant collateral damages.