Las Vegas Locks In $51.5M Formula 1 Deal, Expects Biggest-Ever Economic Boost

On Aug. 12, the Las Vegas Convention and Visitors Authority (LVCVA) announced that it has officially renewed its multi-year sponsorship of the Formula 1 Las Vegas Grand Prix. The deal consists of $20 million of sponsorship for the 2026 and 2027 races, along with a commitment of $10 million annually for the 2025 race on the Strip.

The total Formula 1 sponsorship commitment by the LVCVA is now $51.5 million, which includes another $12 million sponsorship beginning with the 2024 race, which was announced in July.

Overall spending on Formula 1, factoring in marketing and promotional expenses, is projected to exceed $58 million. The authority expects the November 2025 race to have a larger economic impact than the 2024 race, which created $934 million in economic impact with 175,000 unique visitors.

Funding for the sponsorship is obtained mainly from visitor-paid taxes on hotel room stays, generating roughly $350 million a year, and includes revenue from convention center rentals and monorail revenue. The funds will be used to improve safety and operational elements of the event.

Construction work for the race course is currently underway, with a focus on reducing lane closure times from eight weeks in 2024 to three weeks this year. Construction is set to begin in early October 2025, and organizers are hopeful for a more seamless process than the chaotic start they experienced last year. A lowered ticket price generated more ticket sales and increased revenues, which made the Grand Prix even more appealing. The Grand Prix is showcasing Las Vegas to an international audience of more than 50 million people.

"We've agreed collectively that we're going to do a two-year extension for 2026 and '27," Emily Prazer, president of the Las Vegas GP, said. "We want to make sure that we're continuing to evolve what we're doing. But the intent is a much longer-term arrangement.

"As we all know, the race has had its challenges, but we're coming out the other side. So we want to make sure that it continues to work for both sides. So collectively, we sat down and agreed that was the best approach. We're very much planning longer-term, but that's kind of where we're at right now."

Steve Hill, CEO and president of the Las Vegas Convention and Visitors Authority, said: "The length of extensions don't really reflect anything other than it just makes sense incrementally, we know what's going to happen over the next couple of years. We're planning on this being a permanent race; we'll just keep planning extensions that will probably expand as we go forward."