The Las Vegas Convention and Visitors Authority (LVCVA) has announced a commitment of $10 million each year for 2026 and 2027 to support the Formula 1 Las Vegas Grand Prix, ensuring the race’s continuity through 2027.
This agency, primarily funded by hotel room taxes, has allocated $2.5 million annually for programs related to employee transportation on the Strip and ticket acquisitions—costs which were previously approved separately.
The LVCVA Board of Directors unanimously ratified the two-year, $20 million agreement. The previous agreement was valued at $6.5 million per year for the races in 2023, 2024, and 2025 and will wrap up following the event scheduled from Nov. 20-22, 2025. Formula 1 has earmarked Nov. 19-21 for the 2026 Las Vegas Grand Prix.
LVCVA President and CEO Steve Hill indicated that approximately $7.5 million from the new annual budget will be directed towards direct race sponsorship, while the remaining $2.5 million is allocated for ticket purchases and transportation. Hill noted that the $1 million difference between the existing and new contracts is primarily associated with the sponsorship aspect.
Hill further mentioned that the agency may contemplate a longer-term agreement post-2027, subject to economic and logistical evaluations. “The current two-year agreement appears sensible for reaching a five-year mark,” he stated. “We will certainly assess the feasibility of a longer-term contract then. Logistical factors and economic viability are key considerations. Both parties (F1 and the city) need to benefit, and that optimization is ongoing.”
Liberty Media, the parent company of Formula 1, invested $500 million to procure land and establish the three-story pit building and Grand Prix Plaza before the inaugural event in 2023.
The 2024 race attracted a three-day audience of 306,000, including 175,000 unique attendees, generating an approximate economic impact of $934 million, as reported by Las Vegas-based Applied Analysis. The LVCVA has validated that the 2025 event will produce at least $250 million in economic benefit, a prerequisite for the event to advertise on public roadways.
Hill mentioned that ticket prices for 2025 are about 30% lower than those for 2024, contributing to increased sales and revenue.
The 3.8-mile circuit predominantly utilizes public roads, including segments of Las Vegas Boulevard, Koval Lane, Harmon Avenue, and Sands Avenue. Preparations for the 2023 race involved around nine months of roadwork. The event setup and teardown for 2024 caused traffic disruptions for about four months, featuring roughly eight weeks of lane closures; Hill stated that this year’s closures will be reduced by three weeks with the coordination of two teams working concurrently.
Emily Prazer, President and CEO of Las Vegas Grand Prix, expressed enthusiasm stating: “We are excited by the action taken today by the Las Vegas Convention and Visitors Authority, officially solidifying our partnership with this destination.
“The robust connections we’ve forged with the tourism and business sectors have enabled us to host one of the most exhilarating and anticipated races on the Formula 1 calendar. We are eager to collaborate for many years ahead.”