The owners of the Stage Door casino and Battista’s Hole in the Wall lost “millions” of dollars because of the 2023 Formula 1 race in Las Vegas, according to a lawsuit filed Tuesday by the off-Strip properties.

The lawsuit, filed on Sept. 3 by the owners of a small slots-only casino and a historic Italian restaurant behind the Flamingo, seeks more than $50,000 in damages from Clark County and Formula 1 for financial losses suffered leading up to, during and after the 2023 Las Vegas Grand Prix.

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

‘F1 poses existential threat to their businesses’

“Unfortunately, Las Vegas Grand Prix and Clark County left Battistas Hole in the Wall and Stage Door Casino with no choice but to litigate,” spokeswoman Lisa Mayo-DeRiso said in a statement. “These small business owners brought the significant damages and the existential threat F1 was posing to their businesses to the attention of Clark County and F1. For months, they sought a fair and just resolution to this devastating problem, but to no avail. Repeated promises of resolution never materialized. They have no choice but to seek an impartial third party to help them recover their financial losses and prevent their businesses from going under because of F1.”

Attorneys from the Nevada law firm Holley Driggs, who filed the lawsuit in the Eighth Judicial District Court on behalf of Stage Door and Battista’s, argue that the change in the approval process was unfair. Organizers were not required to apply for a special use permit, which would have required more advance notice to neighbors and community input for the 3.8-mile circuit that took place primarily on public roads. Instead, they received a special event permit that the attorneys say was inappropriate for such a high-impact event.

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

The Las Vegas Convention and Visitors Authority has signed a three-year deal with Liberty Media, the parent company of Formula 1, to host the race through 2025. The LVCVA will pay Liberty Media $6.5 million per year to host the race. Both parties have expressed hope that the race will continue to be hosted beyond the initial three-year agreement.

Cannot give salary increases and bonuses to employees

The roadwork began around April 2023 and caused several road and lane closures leading up to the November events. Battista’s attorneys said the roadwork caused the restaurant to lose “millions” but did not specify the losses. Employees and guests were delayed or unable to reach the property throughout the year.

“As inflation and the cost of living rose, Stage Door and Battistas were unable to provide regular raises and/or bonuses to employees,” the lawsuit states. “Vendors and suppliers were also significantly impacted, as they had to spend hours of extra time to reach plaintiffs’ locations — sometimes not at all. Ultimately, some vendors refused to make deliveries to plaintiffs. Trash, which was normally picked up daily, went undetected for days.”

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 due to the impact of road closures during the race and construction leading up to and after the event. The casino specifically took issue with the temporary bridge built on Flamingo Road, which it says cut off access to the business for several months.

The lawsuit is still ongoing.

Contact McKenna Ross at [email protected]. Follow @mckenna_ross_ on X.