Vegas Tourism Board Approves $20M in F1 Spending
Posted on: August 12, 2025, 02:22h.
Last updated on: August 12, 2025, 06:24h.
- The board of the Las Vegas Convention and Visitors Authority unanimously approved $20 million in spending on the F1 Las Vegas Grand Prix
- The money, which comes from visitor room taxes, covers the 2026 and 2027 races
- Glowing reports of the race’s economic benefit to Las Vegas are hotly debated
The Las Vegas Convention and Visitors Authority (LVCVA) on Tuesday unanimously approved a $20 million, two-year sponsorship of Formula 1’s Las Vegas Grand Prix, covering the 2026 and 2027 races.
This agreement picks up where the LVCVA’s last sponsorship — a three-year, $19.5 million deal signed in May 2022 and expiring after this year’s November 20-22 race — leaves off.
The previous deal was also supplemented by a separate 18-month, $12 million sponsorship that began in July 2024 and likewise expires after this year’s race.
That brings the total that the LVCVA has committed to sponsoring F1 to $51.5 million. That number is likely to exceed $58 million when accounting for additional spending on marketing activations, including hospitality, travel, and promotional expenses; in-kind contributions; and contingency funds or performance bonuses embedded in contracts (based on typical expenses reported for other events).
Vroom Tax
The LVCVA’s funding comes not from Clark County residents, but primarily from visitor-paid hotel room taxes (approximately $350 million annually). Additional revenue is drawn from Convention Center rentals ($34.6 million) and monorail operations ($23 million).
By showing iconic Las Vegas images to a worldwide TV audiences of more than 50 million, the Grand Prix elevates the area’s global visibility as a tourism hub. Yet its net economic benefit remains hotly contested.
Speed Bumps
The LVCVA estimated a $934 million economic impact from 2024’s race, which attracted 175K unique visitors and 306K attendees over three days.
According to reports from local news organizations such as the Nevada Independent and Las Vegas Weekly, however, this figure reflects gross spending — not net economic gain — and the benefits claimed are concentrated among a handful of luxury casinos on the Strip. Meanwhile, lower-tier Strip properties, off-Strip casinos, and hundreds of restaurants and small businesses saw their foot traffic, and revenues, plummet.
Last Comments ( 1 )
What a waste of money! That could be spent on making the whole strip a better experience year around. F1 is not what people of Vegas want… it creates business losses, traffic issues, and major eyesore for visitors.