Las Vegas Approves $20M to Sponsor F1 Grand Prix Partnership

On Tuesday, the Las Vegas Convention and Visitors Authority (LVCVA) approved a $20 million race sponsorship agreement that extends the Formula 1 Las Vegas Grand Prix through at least 2027, following the success the event saw last year.

Las Vegas Convention and Visitors Authority Confirms $20M F1 Spending

The LVCVA Board of Directors unanimously voted to commit $10 million annually to sponsor the 2026 and 2027 races. The current agreement between the LVCVA and F1 expires after this year’s race weekend. However, looking ahead, the LVCVA may consider a longer-term deal beyond 2027, depending on several factors. 

The tourism board previously allocated $6.5 million annually to sponsor the race’s first three years. The new $10 million-per-year package now includes spending on tickets and ancillary event costs, which had previously been budgeted at $2.5 million per year. The news comes as a follow-up to an agreement between Las Vegas and F1 earlier this summer that saw both parties confirm their partnership will extend to at least 2027, following last year’s F1 Las Vegas Grand Prix success.

LVCVA CEO Steve Hill noted that the increase per year comes primarily from the enhanced sponsorship, not additional expenses. He also said offering more affordable tickets has led to higher sales and greater overall revenue. Additionally, Hill mentioned that the ongoing construction of the racecourse along Las Vegas Boulevard is improving, with more workers this year helping reduce lane closures by three weeks, down from about eight weeks last year.

It should be noted that the LVCVA itself is primarily funded through hotel room taxes paid by visitors, generating around $350 million annually. Additional revenue comes from Convention Center rentals ($34.6 million) and monorail operations ($23 million), with no direct funding from Clark County residents.

What Would the Economic Impact of the Race Be?

Any city that hosts an F1 Grand Prix sees a drastic shift in visitors and consumer spending, and Las Vegas was no exception last year. According to LVCVA estimates, the 2024 Las Vegas Grand Prix generated a $934 million economic impact, drawing 175,000 unique visitors and 306,000 total attendees over the three-day event.

However, local outlets like the Nevada Independent and Las Vegas Weekly have pointed out that this figure represents gross spending, not net economic benefit. Reports suggest that most of the gains were concentrated among a few high-end casinos on the Strip, while many mid-tier Strip hotels, off-Strip properties, local restaurants, and small businesses experienced significant drops in foot traffic and revenue during the event.