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Italian restaurant, casino sue Clark County, F1 over impact of race road work

Updated September 5, 2024 - 2:42 pm

The owners of Stage Door casino and Battista’s Hole in the Wall lost “millions” of dollars because of 2023’s Formula One race in Las Vegas, according to a lawsuit filed Tuesday by the off-Strip properties.

The suit, filed Sept. 3 by the owners of a small, slots-only casino and historic Italian restaurant behind the Flamingo, seeks damages over $50,000 from Clark County and F1 because of the financial losses incurred leading up to, during and after the 2023 Las Vegas Grand Prix.

Clark County commissioners acknowledged the Grand Prix as an annual event for at least 10 years. A February 2023 resolution waived time limitations for applications and restrictions on streets and times for the event without additional meetings so long as the race is held the week before Thanksgiving in November.

‘Existential threat caused by F1 to their businesses’

“Unfortunately, Las Vegas Grand Prix and Clark County gave Battistas Hole in the Wall and Stage Door Casino no choice but to litigate,” spokesperson Lisa Mayo-DeRiso said in a statement. “These small-business owners brought their substantial damages and the existential threat caused by F1 to their businesses to the attention of Clark County and F1. For months they sought a fair and just solution to this devastating issue, however, to no avail. Repeated assurances of a resolution never materialized. They have no choice but to ask an impartial third party to remedy their financial losses and to prevent their businesses from going under because of F1.”

Attorneys for Nevada firm Holley Driggs, who filed the lawsuit on behalf of Stage Door and Battista’s in District Court, argue this change in approval process was unfair. Organizers did not have to file for a special use permit, which would have required more notification to nearby neighbors and community input for the 3.8-mile circuit that mainly used public roads. Instead, they received a special event permit that the attorneys argue was not suited for such a high-impact event.

Representatives for Clark County did not respond to a request for comment. Lori Nelson-Kraft, spokesperson for the Las Vegas Grand Prix, said the organization does not comment on pending litigation.

The Las Vegas Convention and Visitors Authority entered into a three-year agreement with Liberty Media, F1’s parent company, to host the race through at least 2025. The LVCVA pays Liberty Media $6.5 million per year to put on the race, with both sides expressing hope to hold the race beyond the initial three-year agreement.

Unable to give raises, bonuses to employees

Road construction began around April 2023 and caused road and lane closures leading up to the November event dates. Battista’s attorneys said the road work caused the restaurant to lose “millions,” but did not specify its losses. Workers and guests were delayed or unable to access the property throughout the year.

“While inflation and the costs of living were rising, Stage Door and Battista’s were unable to give normal raises and/or bonuses to employees,” according to the suit. “Vendors and suppliers were also significantly impacted as they had to spend hours of additional time to try and reach Plaintiffs’ locations — sometimes never making it at all. Eventually, some vendors refused to make deliveries to Plaintiffs. Trash, which was normally picked up daily, would go days without being collected.”

Tuesday’s lawsuit comes months after another nearby casino, Ellis Island on Koval Lane south of Flamingo Road, filed a similar complaint. The casino alleged in an April 30 filing that it lost millions from the impact of road closures during the race and construction leading up to and after the event. It particularly took issue with the temporary bridge built on Flamingo Road, which they say cut off access to the business for several months.

That lawsuit is ongoing.

Contact McKenna Ross at mross@reviewjournal.com. Follow @mckenna_ross_ on X.

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