Formula One has initiated legal action against the owners of two well-known Las Vegas stores, Bonanza Gift Shop and its affiliated Crazy Ely, accusing them of selling counterfeit F1 merchandise during the inaugural 2023 Las Vegas Grand Prix. The lawsuit claims trademark counterfeiting, unauthorized use of trademarks, and unfair competitive practices tied to these counterfeit goods.

During the 2023 race weekend, Formula One sent investigators to both shops. Authorities seized 69 counterfeit items from Crazy Ely, but when they arrived at Bonanza Gift Shop, shelves that supposedly held infringing products were already cleared. The suit states that roughly 2,400 fake products were ordered from these locations, and the company is seeking a jury trial along with damages that could reach $1 million.

Legal Battles Surrounding the Las Vegas Grand Prix and Formula One

The lawsuit against Bonanza Gift Shop and Crazy Ely adds to a growing list of legal disputes connected to Formula One and the Las Vegas Grand Prix since its debut in 2023. The race’s organizers have frequently been involved in litigation, either as plaintiffs or defendants, reflecting ongoing tensions between event operations and local interests.

Action Against Supplier of Counterfeit F1 Apparel

In May 2025, Formula One filed suit against E & B Wholesalers, accusing the company of producing and distributing more than 500 pieces of fake F1 and Las Vegas Grand Prix apparel to multiple Las Vegas retailers, including Bonanza Gift Shop. This case remains active, with further developments expected by October 2025.

Fan Class Action Over 2023 Practice Session Delays

Fans of Formula One continue to recall the disruption caused during the 2023 Las Vegas Grand Prix when a faulty water valve on the street circuit delayed practice sessions—including impacting driver Carlos Sainz’s car. The second practice session was held only after fans, many of whom had already been asked to leave, were cleared from the track.

A lawsuit filed against F1’s parent company, Liberty Media, and Las Vegas Paving claims approximately 35,000 fans who purchased tickets for the Thursday practice sessions suffered losses. They demand compensation totaling $5 billion. As of February 2025, the judge dismissed the suit against the paving company and requested the plaintiffs amend their complaint, leaving the case partially unresolved.

Ellis Island Casino’s Lawsuit Against Formula One

Ellis Island Casino, one of the few family-owned venues near the Las Vegas Strip located close to turns 3 and 4 of the Grand Prix circuit, filed a lawsuit in 2024. The casino argued that the event’s arrangement in 2023 blocked customer access and caused significant financial losses, allegedly reaching millions of dollars. Before the race, Ellis Island held an agreement with Formula One to offer private viewing decks and grandstands independent of the official seating options. However, these plans were canceled for 2024 as a result of the legal dispute.

The case was dismissed in May 2025 after Ellis Island and Formula One reached a partnership agreement, allowing the casino to participate as an official Grand Prix partner moving forward.

Small Business Claims Over Race-Related Road Closures

Another lawsuit involved Battista’s Hole in the Wall and Stage Door Casino, businesses situated along the street circuit route. They sought damages due to lost income from road closures and construction for the 2023 race, especially focusing on the removal of a temporary bridge on Flamingo Road—a key avenue for locals and tourists heading to Las Vegas Boulevard.

This dispute was settled with an agreement between the parties, though no financial details have been publicly disclosed.

Ongoing Challenges Between F1, Local Businesses, and the Community

While many lawsuits tied to the Las Vegas Grand Prix have been resolved, the race is scheduled to remain part of the F1 calendar at least through 2027. As the event enters its third year, both fans and residents are hoping for better harmony between the spectacular sports event and its impact on Las Vegas’s infrastructure and economy.

The continuing legal conflicts underscore the complexities faced by Formula One as an international sports organizer operating within a dynamic cityscape. The outcome of the major counterfeit merchandise lawsuit will likely influence how hard F1 continues to crack down on unauthorized sales and protect its brand locally.