Las Vegas Commits $20 Million to Extend Formula 1 Grand Prix Partnership

Las Vegas Extends Formula 1 Grand Prix Sponsorship

The Las Vegas Convention and Visitors Authority (LVCVA) has approved a $20 million sponsorship deal to secure the Formula 1 Las Vegas Grand Prix through at least 2027. This decision follows the strong success of the event held last year, cementing Las Vegas as a key destination for international motorsport.

Details of the Sponsorship Agreement

The LVCVA Board of Directors agreed unanimously to allocate $10 million each year for the 2026 and 2027 Grand Prix events. This new sponsorship commitment follows the expiration of the current contract after this year’s race. There is potential for an even longer extension beyond 2027, depending on future developments and considerations.

Previously, the tourism authority dedicated $6.5 million annually to sponsor the initial three years of the race. The updated package now includes a $10 million annual budget that covers additional expenses like ticket sales and related event costs, which were formerly accounted for with a separate $2.5 million yearly allocation.

Steve Hill, CEO of LVCVA, emphasized that the increased funding predominantly reflects an enhanced sponsorship role rather than rising costs. He also highlighted that reducing ticket prices has boosted sales and overall event revenue. Moreover, ongoing construction to prepare the racecourse along Las Vegas Boulevard is progressing well. Enhanced workforce efforts have shortened lane closures from eight weeks last year to only three weeks this year, minimizing disruption to the city.

It is important to note that the LVCVA’s funding primarily comes from hotel room taxes paid by visitors, which generate around $350 million annually. Additional income streams include Convention Center rentals, contributing $34.6 million, and monorail operations, which add $23 million. These funds do not rely on direct contributions from Clark County residents.

Economic Impact of the Las Vegas Grand Prix

Hosting a Formula 1 Grand Prix typically leads to a significant surge in tourism and consumer spending, and Las Vegas felt this impact in 2024. Estimates from the LVCVA suggest that the 2024 event contributed approximately $934 million to the local economy. The race attracted about 175,000 unique visitors and recorded a total attendance of 306,000 over the three days of the event.

However, some local analyses have pointed out that these figures represent gross spending and may not fully reflect the net economic benefits to the city. Reports indicate that financial gains were largely concentrated among a select group of luxury casinos along the Las Vegas Strip. Meanwhile, many mid-range hotels, off-Strip accommodations, local dining establishments, and smaller businesses encountered reduced customer traffic and lower revenues during the Grand Prix weekend.