Vegas Tourism Board Approves $20M in F1 Spending
A $20 million, two-year sponsorship deal for the 2026 and 2027 Formula 1 Las Vegas Grand Prix was overwhelmingly authorized by the Las Vegas Convention and Visitors Authority (LVCVA) on Tuesday.
This contract continues where the LVCVA's previous sponsorship, a $19.5 million, three-year pact signed in May 2022 and ending with this year's race on November 20–22, left off.
A separate 18-month, $12 million sponsorship that started in July 2024 and also ends after this year's event was added to the prior agreement.
This raises the total amount of $51.5 million that the LVCVA has pledged to sponsor Formula One. Including additional spending on marketing activations, such as travel, hospitality, and promotional costs; in-kind contributions; and contingency funds or performance bonuses built into contracts (based on typical expenses reported for other events), that figure is probably going to be higher than $58 million.
The Vroom Tax
The LVCVA is primarily funded by hotel room fees paid by visitors (about $350 million a year), not by Clark County residents. Monorail operations ($23 million) and Convention Center rentals ($34.6 million) generate additional cash.
The Grand Prix raises the region's profile as a major travel destination by showcasing famous Las Vegas pictures to over 50 million viewers globally. Its total economic value, however, is still up for debate.
Acceleration bumps
The 2024 race, which drew 306K attendance over three days and 175K unique visitors, was projected by the LVCVA to have an economic impact of $934 million.
However, this number represents gross expenditure rather than net economic gain, and the benefits are concentrated among a small number of upscale casinos on the Strip, according to reporting from local news outlets including the Nevada Independent and Las Vegas Weekly. In the meantime, foot traffic and income fell for hundreds of restaurants and small businesses, off-Strip casinos, and lower-tier Strip properties.
