Yep, it's a sport. It's international. I think they Olympics are about non-mechanical sports but they do allow bicycles (but they are human powered). Why not, F1 is international, I'm sure it would bring a lot of money into the Olympics.
NOTE - somebody suggested this to me as an Olympic event but with a caveat - the drivers all have to drive the exact same car - that way you could truly gauge the skill level and athleticisim of the drivers.
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