YOU COULD SAY the relationship between Las Vegas and Formula 1 is meant to be. You could even say this without noting that the central plot line for the 1964 Elvis Presley movie Viva Las Vegas was a fictional Grand Prix race in the city. Yet, as the world gears up for the speed and the spectacle, Las Vegas locals face a conundrum: While business leaders increasingly tailor the city to lavish events, the inhabitants who support the tourism industry that make such events possible stand to lose the affordable cost of living that drew them here to begin with.
THE IMPENDING ARRIVAL of the inaugural Formula 1 Heineken Silver Las Vegas Grand Prix in November signifies a shift for the city. According to business advisory firm Applied Analysis, it’s Las Vegas’ first mega event meant to generate up to $1.3 billion in spending, double what’s expected when Las Vegas hosts the 2024 Super Bowl.
Bringing the race to Las Vegas seems like a veritable win-win. Liberty Media, the owner of Formula 1, is banking on the city’s reputation as an uber entertainment, gambling, and all-night revelry destination to increase its fan base. Local leaders expect the community to get a financial boost from hospitality-related spending. This promise of an economic windfall caused by Formula 1 and other mega-events to come sounds suspiciously like trickle-down economics.
Although the plan for the Grand Prix has been in motion since 2019, it feels very much like a recent event meant to serve corporate hotel operators. As of this writing, the price of a three-day race ticket in the Bellagio Fountain Club area is $11,247 per person — something none of my friends in the city could afford — and that’s just one piece of a larger puzzle.
As the countdown to the race begins, local social media accounts including @LasVegasLocally on X (formerly Twitter) and
VegasStarfish on TikTok document road closures and tree removals. The impacts — economic, environmental, and social — are becoming increasingly clear. The allure of Las Vegas to potential residents has much to do with the promise of cheap and easy living, and abundant employment opportunities and sunshine. It’s what got me to pack up my Volvo and leave New York for good. Formula 1 threatens to upset the delicate balance that has kept Las Vegas both accessible and entertaining. Can the city keep its old way of life, while embracing and meeting the demands of another professional sport?
WHEN I WAS a teenager, I spent every weekend during Grand Prix racing season glued to the television watching the races in far-away places. What I admired about the drivers wasn’t so much their ability to fly around corners defying gravity, nor their winning strategies; it was their ability to zip around a track for 50 laps, making slight changes each time, perfecting timing and coordination while keeping a constant watch on competitors … and the finish line.
Being a city that meets the current and future wants of its residents requires a similar skill. Las Vegas is that near-mythical metropolis with the ability to quickly build the infrastructure needed to attract and host international events. The world is watching as Las Vegas prepares for Formula 1; local leaders are betting on it. But what is the finish line?
Local leaders should ask themselves this and understand that residents are also watching, flabbergasted at the ostentatious display that’s out of reach for many of the people who will be cleaning up the tinsel and garbage left behind. As a Formula 1 racing fan, I never thought about the reality of life in circuit locations after the race leaves town. If residents bear the unintended consequence of sudden price inflation or increased trash headed to landfills or overcrowding emergency rooms, then boosters and organizers must deem it a small price to pay compared with the benefit of hosting. It’s temporary, right?
Maybe not. The Las Vegas Convention and Visitors Authority is working to attract more mega-events (the Super Bowl on Feb. 11 and the Final Four for March Madness in 2028), meaning a packed Strip every few weeks or months will become the norm. How will the congestion affect Strip workers? Or the conventions that have been a constant economic staple in the region since the ’80s?
Formula 1 takes place the week before Thanksgiving, a traditionally slower time for tourism. Hotels in and around the Strip are already sold out. Room rates are expected to be significantly higher than the usual price, meaning smaller meetings and off-season visitors may stay away. MGM Resorts is calling the Grand Prix an “all-time record casino event,” while Wynn Resorts claims it’s tailor-made for high rollers. But who’s analyzing the hidden costs of luring those big spenders?
Consider the kerfuffle between Formula 1 and some Strip venues. The New York Post reported that Formula 1 threatened to block the views of establishments overlooking the 3.8-mile circuit unless these businesses coughed up a licensing fee of $1,500 per person based on full capacity. Other accusations, according to the Post, included race organizers’ plan to shine lights toward unlicensed venues, blinding guests who wanted a peek at the nighttime race, and to obstruct views with barriers and stands. Strip establishments pushed back until Formula 1 relented. Following deliberations, race organizers settled on a flat rate of $50,000 for each venue’s licensing fee.
Ambitious tasks are bound to take a long time. The substantial street-paving of Koval Lane to Sands Avenue and then south on Las Vegas Boulevard to Harmon Avenue started in the spring. The project has disrupted traffic on the Strip and nearby roads ever since. Resort guests and casino employees have something to contend with in a city not known for its navigability: gridlock and construction dust. Most of the construction for the Las Vegas circuit is expected to be completed in the last two weeks before race day. Although Liberty Media has been pouring money into race prep, half of the $80 million road cost is coming from public coffers. Meanwhile, on social media, locals repost news reports on F1 preparations, attaching comments about how much it’s tacking onto their commutes, childcare costs, and more.
One possible solution to all this lies in responsible urban development. As Las Vegas expands to accommodate the demands of the Grand Prix and other major events, it must also invest in other valley-wide infrastructure needed to ensure residents can move around the city easily. The development of an efficient public transportation system, affordable housing initiatives, and community-focused development projects would help to preserve the essence of
Las Vegas for its residents.
In the end, the challenge for Las Vegas is to strike a balance between being a global entertainment and sporting destination, and a place with high quality of life for its residents. The arrival of the Grand Prix is a testament to the city’s event-hosting prowess; it should also serve as a reminder that the heart of Las Vegas lies not just in the bright lights of the Strip, but also in the diverse and hard-working people that call it home. Balancing economic growth with resident needs will help ensure that Las Vegas remains a competitive city, but also continues to attract the workers who keep it that way.