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Formula One threatens to block Las Vegas clubs’ race views unless they pay millions in fees: sources (NY Post):

Las Vegas hotspots are waving the red flag at Formula One — claiming its executives are threatening to block views of the posh car race unless they fork over millions of dollars in fees, The Post has learned.

The red-hot racing league has demanded that venues along the 3.8-mile circuit — slated to run through the heart of Sin City during November’s Las Vegas Grand Prix — pay $1,500 per head for licensing rights, according to a letter to the venues obtained by The Post.

For a restaurant or club with 1,500 seats, the tab would soar to a whopping $2.25 million — regardless of how many guests can catch views from their roof decks, terraces and dining areas.

If clubs and restaurants refuse to pony up, sales reps for F1 — owned by billionaire John Malone’s Liberty Media — have warned that obstructions like barricades, stands and light stanchions could end up ruining the race for their customers, according to a source.

“They are literally shaking people down saying they will obstruct views unless they pay them,” one hacked-off casino owner on The Strip told The Post. “It seems insane that they are asking money for a public event that is taking place in the streets.”

Sources also claim that salespeople working for Renee Wilm, the Las Vegas Grand Prix CEO and Liberty Media’s chief legal officer, have even threatened that lights will be shined toward the viewing areas of unlicensed venues, blinding guests trying to get a peek at the nighttime race.

“There is a real chance of obstructing views with stands and barricades,” one source close to the situation said. “I know the hotels are upset about it and they are trying to figure out if they’ll play along.”

The letter sent to venues like Planet Hollywood and Black Tap Craft Burgers and Beer — which are along the race route — comes with a subtle threat worthy of Vegas pioneer and infamous mobster Bugsy Siegel, sources said.

“Las Vegas Grand Prix will use reasonable efforts to maintain sightedness from licensee’s venue to the track/race,” according to the overview of the F1 proposal reviewed by The Post. “The license fee will equal the maximum occupancy of licensee’s venue (per fire code) multiplied by $1,500.”

The big worry is that Vegas venues will be forced to pass the fees along to their high-rolling customers in the form of stratospheric cover charges that could soar past $2,000 a head, according to a Las Vegas executive who spoke on the condition of anonymity.

While Formula One may charge similar fees at other street course locales like Monaco, Las Vegas venues want high rollers to come and gamble several times a year. If customers spend too much money on this trip, they may not come back again soon, the executive insisted.

The Vegas executive added he has direct knowledge of a venue that in recent days told Formula One it would not pay for licensing. In response, F1 is pressuring Las Vegas Grand Prix official sponsors to get that venue to cough up the cash, the source said.

“There is a certain line they are crossing [by] telling someone who has spent billions on their property that you are shutting the Strip down for construction and then asking them to pay for seats,” the source close to the situation said.

“They are trying to limit people’s ability to capitalize on the race.”

Hotels like the Venetian and Wynn are already paying roughly between $2 million and $10 million each to be official race sponsors and are not being asked to pay more for having rooms that face the course.

But F1 is still asking some of their restaurants to pay the licensing fees, sources said.

What Formula One is doing is probably not illegal, the source said, although it looks opportunistic.

“They own the right to the race so it would be hard for a venue to prove damages,” the source said.

The three days of events, culminating with Saturday night’s Las Vegas Grand Prix, will run from Nov. 16-18. It is estimated that as many 300,000 F1 fans will attend.

Ticket packages for the public have not sold out, according to the Formula One website.

The average ticket price for the three-day package is already $6,651, almost 50 percent more expensive as the $4,600 price for the Miami Grand Prix, according to a study by King Casino Bonus.

“$8,000 per person for Heineken House?” an F1 fan said on their social media account referring to the three-level structure that will be next to the track and have DJs and all-inclusive food and beverage.

“As a true F1 fan, very disappointing that nothing at the Las Vegas Grand Prix is affordable — but there are tickets available. Guess I will stick with general admission passes for Austin and Miami.”

Run-of-the-mill hotel rooms for the weekend are charging $1,000 a night. Add the $6,651 average race tickets for three days — or the jacked-up cover to go to a restaurant with good views — and flights and it could easily become a $15,000 weekend for a couple before gambling.

Beer Park is officially partnered with Formula One and is charging $5,500 for full, three-day access to the venue’s indoor space including food and beverages, with over 75 HDTVs as well as the 9,000-square-foot outdoor terrace with trackside views.

Formula One is paying Madison Square Gardens’ Sphere arena nearly $10 million for its empty parking lot to put up its own stands.

Previous F1 races in the US, like the Miami Grand Prix, have been held on tracks that are contained within one venue.

But the Ferraris and Red Bulls racing down the Las Vegas Blvd. (the Strip) straightaway at speeds topping 200 mph will zoom past The Mirage, Caesars Palace, Drai’s Beachclub, the Bellagio and Cosmopolitan on Las Vegas Boulevard (the Strip).

The 17 sharp turns will take drivers past Planet Hollywood on Harmon Ave. and around the newly built Las Vegas Sphere and Wynn Resorts on Sands Avenue.

John Malone’s Liberty has made a fortune from Formula One, valuing the racing organization at $8.8 billion when it took control in 2016.

Sportico said last month it is now worth $17.1 billion thanks partly to the Netflix “Drive to Survive” series.

A Liberty spokeswoman did not return calls, and nor did Renee Wilm.

https://nypost.com/2023/07/23/f1-threatens-to-block-las-vegas-clubs-race-views-unless-they-pay-millions-sources/?utm_campaign=iphone_nyp&utm_source=message_app

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I'll never step foot into it, but I'm sure it will go over well:

https://www.fox5vegas.com/2023/07/24/whataburger-coming-las-vegas-with-247-strip-location/

 

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Burger fans, rejoice! Whataburger is set to open its first Las Vegas location.

The restaurant chain announced it will open a new location on the Las Vegas Strip this fall, adjoining the Waldorf Astoria. The restaurant will be two levels and will be a 24/7 location.

 

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“As the city that never sleeps, and a brand that is open 24/7, it only made sense to bring a Whataburger to the Strip. Whether you’re craving a double-meat Whataburger with jalapenos or a savory Honey Butter Chicken Biscuit, Whataburger has your back with breakfast, lunch and dinner,” said Whataburger President and CEO Ed Nelson in a news release. “We’re excited for both locals and visitors to sink their teeth into a fresh new option and find ways to customize their Whataburgers ‘just the way they like it.’”

Whataburger plans to hire 210 local employees, according to a news release.

Whataburger has 950 locations that operate 24/7, 364 days a year, but this will be the first location in Nevada.

 

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2 hours ago, gyroprotagonist said:

 I get their point somewhat, but max occupancy * $1500 is straight up extortion.  

Particularly considering some of the lower end places will probably be losing revenue over the course of the week due to lower foot traffic with all of the chaos/construction.  Places with strip views are paying rent based on those strip views.  Hoping someone challenges F1 in court if they go through with putting up barriers.

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Casino Royale's days are numbered.

https://www.casino.org/vitalvegas/faa-gives-green-light-for-new-tower-on-casino-royale-site/

 

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As we reported back in June 2023, a representative of Casino Royale submitted a request to the FAA to evaluate the impact of a 699-foot structure in the works for the site, presumably a new hotel.

The FAA recently cleared the construction for take-off, which we acknowledge is possibly the worst metaphor you will read anywhere today.

Signs are pointing toward Casino Royale being closed and demolished, although no official announcement has been made.

 

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The FAA’s determination is dated July 21, 2023, and the approval is directed to Craig Dudley, a longtime Las Vegas deal-maker believed to be working for Casino Royale as a consultant. (We left a message for Dudley at Casino Royale, but never heard back. Shocker.)

The FAA letter states: “The aeronautical study revealed that the structure would have no substantial adverse effect on the safe and efficient utilization of the navigable airspace by aircraft or on the operation of air navigation facilities. The FAA cannot speak to the potential impact upon UFOs or UAPs, or whatever the nutjobs are calling now, but as for planes, you’re good.”

 

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The FAA is known for its sense of humor.

The 11-page letter can be found on the FAA Web site under “Determined Cases.” The study number is 2023-AWP-2081-OE. (Do we have to do everything for you, local media?)

In related news, we’re told Casino Royale (technically, Best Western Plus Casino Royale) has taken no room reservations for the potentially lucrative F1 dates in November 2023. As we said, Casino Royale hasn’t confirmed any plans for closure. Highly curious.

 

Spoiler

We have learned team members at the Outback Steakhouse at Casino Royale have been informed the restaurant will close. We’re pretty sure this is related to a potential shuttering of Casino Royale, but casino employees have been given no such notice.

The FAA’s approval of the new tower expires on Jan. 21, 2025.

We first shared rumors of a potential closure of Casino Royale back in 2018. A lot has happened since then, pandemicwise, obviously.

We’ve since been told Ritz-Carlton is no longer the hotel partner, and the new hotel on the Casino Royale site will be a different brand.

We’re keeping an eye on any developments, and enjoyed our recent visit to Casino Royale. It’s a holdover from a different era. It’s one of the few stand-alone casinos on the Las Vegas Strip (not owned by a giant casino company or REIT), and it’s all about value. Oh, and there’s still free parking, if you can believe that.

Gaming licenses are extraordinarily valuable, so the hope is the new offering will be a hotel-casino, emphasis on “casino.”

Development projects are fluid in Las Vegas. Some start and stop (looking at you, Dream) and some never start at all (looking at you, All Net). The conditions for development financing aren’t exactly optimal at the moment (just ask Tilman Fertitta about his planned new resort on The Strip).

We’ll have to wait and see if the development on the Casino Royale site has a smooth landing or is buffeted by turbulence. Either way, we’ll keep it on your radar.

 

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13 hours ago, Dbeasy said:

Went to an off strip casino resort last week. It was pretty smoky. It’s been five years since I visited the strip. Are the main strip casinos pretty smoky too? I don’t remember that the last time I was there. 

I'd say generally not smoky at all in main strip casinos, unless you are at a table or machine directly next to someone smoking. 

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15 hours ago, Francisco 2.0 said:

Casino Royale's days are numbered.

Yeah, has been the scuttle for awhile. Ritz going in I think.

The CR was a great destination for mid-strip cheap craps. (Now gone) had that one table buried way in the back with very surly dealers and the absolute best cocktail service. Not the best looking waitresses and not even close. But it was very rare that your drink was empty and you'd have a waitress waiting to take another order. 

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Oh I don't doubt the utility of the walkway, I'm just laughing about that dudes ability to upload possibly the most boring video of Vegas of all time. At least wait until some hot ass is cruising through before you start filming. 

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Any website recommendations that keep up to date info on table rules for the major casinos? I’ve used to go to Vegas pre-Covid ~3x per year but haven’t been recently. Im starting up again and was curious about blackjack payouts or craps All-small-tall payouts. I’ve read casinos have been screwing with these lately.

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23 minutes ago, Nice Guy Eddie said:

Any website recommendations that keep up to date info on table rules for the major casinos? I’ve used to go to Vegas pre-Covid ~3x per year but haven’t been recently. Im starting up again and was curious about blackjack payouts or craps All-small-tall payouts. I’ve read casinos have been screwing with these lately.

can't vouch for 100% accuracy, but this looks close to what I have seen based on a quick look

 

https://vegasadvantage.com/las-vegas-table-game-guide/

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Any website recommendations that keep up to date info on table rules for the major casinos? I’ve used to go to Vegas pre-Covid ~3x per year but haven’t been recently. Im starting up again and was curious about blackjack payouts or craps All-small-tall payouts. I’ve read casinos have been screwing with these lately.

The Vegas Advantage link posted above is a good one and most likely current. If you haven’t been in a few years, you are correct there have been some changes to the rules in certain casinos in various games.

I know Wynn made changes to craps around the pandemic time frame. Blackjack has been steadily getting worse for players on the Strip for quite awhile. I always recommend Ellis Island casino for both, they have good rules and friendly dealers with low minimums.
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43 minutes ago, Incredulity said:

can't vouch for 100% accuracy, but this looks close to what I have seen based on a quick look

 

https://vegasadvantage.com/las-vegas-table-game-guide/

On this note we're looking for local(s) places near downtown. Something else to do beside the standard casinos on / adjacent to Fremont. We did Jerry's Little Nugget last year and it was, well, entertaining - low craps mins and some interesting locals. Along these lines. 

Thanks in advance. 

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30 minutes ago, bigup2dahorns said:


The Vegas Advantage link posted above is a good one and most likely current. If you haven’t been in a few years, you are correct there have been some changes to the rules in certain casinos in various games.

I know Wynn made changes to craps around the pandemic time frame. Blackjack has been steadily getting worse for players on the Strip for quite awhile. I always recommend Ellis Island casino for both, they have good rules and friendly dealers with low minimums.

Also at Ellis Island if you play the $25 table you will pretty much have it to yourself.  Others will be very busy.

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On 8/4/2023 at 11:45 AM, Wally Pryor said:

Yeah, has been the scuttle for awhile. Ritz going in I think.

The CR was a great destination for mid-strip cheap craps. (Now gone) had that one table buried way in the back with very surly dealers and the absolute best cocktail service. Not the best looking waitresses and not even close. But it was very rare that your drink was empty and you'd have a waitress waiting to take another order. 

Yep.   Used to stay at Bellagio or Venetian and gamble at CR.   Long live the days of playing 100x odds craps and $.25 roulette while never running dry on a cocktail...and then be able to buy $1 Michelob longnecks while you walk past.  

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Yep.   Used to stay at Bellagio or Venetian and gamble at CR.   Long live the days of playing 100x odds craps and $.25 roulette while never running dry on a cocktail...and then be able to buy $1 Michelob longnecks while you walk past.  

RIP… those were the days. Long live the ‘Palace and being able to play beer pong on the strip.
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4 hours ago, Party_Taco said:


RIP… those were the days. Long live the ‘Palace and being able to play beer pong on the strip.

2000's in Vegas was so great.  Spent a ton of time at Casino Royale and original O'Sheas.  And my first ever trip @ 21 I stayed at the Palace.

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2000's in Vegas was so great.  Spent a ton of time at Casino Royale and original O'Sheas.  And my first ever trip @ 21 I stayed at the Palace.

That was the trifecta back in the day… didn’t have much of a reason to go anywhere else except for food and nightlife. The fricken midgets at O’Sheas along with surly dealers who would talk shit to your face one hand and then bury your face in their tits the next we’re simply undefeated.
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I may have to make a special trip just to go to CR before it shutters.   
 

I remember when AB stopped making regular Michelob, they still made it specifically because CR sold so much of it for like another year.  I miss old michelob with the wide i hip bottles…and I’ll miss CR.  
 

my cousin got thrown out of there one night because we were hammered and acting fools while winning a little bit of money.   He yelled “I’ve been thrown into better shitholes than this!!” At the security dude.   Laugh about that every time I think about that place.   

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Southwest has super cheap flights in December right now.  Just booked a Sat-Tuesday trip that was $340 for wife and me.  Have to go back before covid for the last time we got 2 tickets that low.  Flight home was $55.

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On 8/13/2023 at 1:02 PM, Party_Taco said:


That was the trifecta back in the day… didn’t have much of a reason to go anywhere else except for food and nightlife. The fricken midgets at O’Sheas along with surly dealers who would talk shit to your face one hand and then bury your face in their tits the next we’re simply undefeated.

Barbary / Bill's was at or near the top of the list. Small, 4-story hotel, nice, easy to navigate and no rat maze, cheap, fantastic location, mid Strip. Craps tables were the best with smartass but fun dealers. Harold may have been the best pit boss ever. Cocktail service was great. You'd hear Big E in the afternoon from the stage. And at night was the icing on the cake - Drais would open at midnight and those same crap tables were immediately next to the club's restrooms, specifically the women's restroom. At about 3A the parade to and from the restrooms became the show of all shows, all the while you're at a low-min table with constant cocktail service. It did not get any better.

Just got back from a 4-day stay. Across the board the Uber drivers, restaurant employees and casino workers were in unanimous agreement that the F-1 is destined to be a cluster. One pit guy we talked to at Paris said they have no idea how they're going to be able to drive in to work. Contemplating housing employees in the hotel out of necessity. Should be fun for them.

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I’m not really a Vegas guy, but was convinced to go with a couple guys this past weekend. Friday night was a typical shit show, but Saturday was a really fun day.

7:50 tee time at Paiute with incredible 70 degree weather. 

Took mushrooms around 2pm and played craps for a few hours at the Bellagio. After getting wiped on Friday night, all four of us doubled up at a great table and finished slightly up for the weekend.

Went to some dim sum place to come down and relive the day. 

Flight back to the east coast was rough on Sunday. I’m getting too old for this shit.

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Formula One slashes Las Vegas Grand Prix fees after backlash from clubs, restaurants: sources (NY Post):

Formula One has pumped the brakes on a controversial plan to force Las Vegas clubs and restaurants to cough up millions of dollars in licensing fees by threatening to block their views of the hotly anticipated Grand Prix race, The Post has learned.

The posh car racing league has slashed the price that venues located along the November event’s 3.8-mile circuit must pay to around $50,000 each — down sharply from a $1,500-per-head demand that would have resulted in a tab of $3 million for a major venue with a capacity of 2,000, as the The Post exclusively reported.

Insiders said F1 — owned by billionaire John Malone’s Liberty Media — has backed down after allegedly threatening not to protect venues from having barricades, lights and other obstructions placed in front of businesses that refused to pay the licensing fees, which had been based on the maximum capacity of venues according to city fire codes.

“This venue fee is much smarter,” a source close to restaurant owners said, adding, “It’s much more in line with what the Super Bowl will charge” when it is played in Las Vegas next year.

While Formula One has charged similar fees at other street course locales like Monaco, Las Vegas venues claimed that casinos are looking for high rollers to come and gamble several times a year. If customers spend too much cash on F1 trip, they may delay their next visit, one executive argued.

The cheapest ticket packages available for the race begin at $2,000.

In addition to an unobstructed view, the $50,000 venue fee will grant restaurants and clubs a direct feed of the Las Vegas Grand Prix, which will be held Nov. 18, sources said.

“There is a certain line they are crossing [by] telling someone who has spent billions on their property that you are shutting the Strip down for construction and then asking them to pay for seats,” a source told The Post last month.

A Formula One spokesman declined comment.

Las Vegas has spent millions repaving the famed Strip and other adjacent streets as it prepares for the F1 road race.

The three-day spectacle from Nov. 16-18, culminating with the Grand Prix on Saturday night, is expected to draw about 300,000 fans.

The league’s other races — in Miami and Austin, Texas — are held on closed tracks. Las Vegas had previously hosted an F1 event on the Caesars Palace grounds in the early 1980s.

https://nypost.com/2023/08/21/formula-one-slashes-las-vegas-grand-prix-fees-after-backlash-sources/

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On 8/20/2023 at 10:05 PM, Wally Pryor said:

Barbary / Bill's was at or near the top of the list. Small, 4-story hotel, nice, easy to navigate and no rat maze, cheap, fantastic location, mid Strip. Craps tables were the best with smartass but fun dealers. Harold may have been the best pit boss ever. Cocktail service was great. You'd hear Big E in the afternoon from the stage. And at night was the icing on the cake - Drais would open at midnight and those same crap tables were immediately next to the club's restrooms, specifically the women's restroom. At about 3A the parade to and from the restrooms became the show of all shows, all the while you're at a low-min table with constant cocktail service. It did not get any better.

Just got back from a 4-day stay. Across the board the Uber drivers, restaurant employees and casino workers were in unanimous agreement that the F-1 is destined to be a cluster. One pit guy we talked to at Paris said they have no idea how they're going to be able to drive in to work. Contemplating housing employees in the hotel out of necessity. Should be fun for them.

Stayed there many times starting in the late 1990s - favorite room was the last one on the SW corner of the 4th floor.

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1 minute ago, Wally Pryor said:

Yup, another benefit of the place - unobstructed view of the Bellagio fountains. 

And if you opened the little stained glass window in the small bathroom, the music was fairly audible.

Plus just two minutes from the room to out on the sidewalk.

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