Tourism board approves sponsorship commitment for Formula One race in Las Vegas

A group of Formula 1 fans at the T-Mobile Zone at the Sphere watch a practice match in Las Vegas, Nevada on Thursday, November 21, 2024. Photo by: Brian Ramos

The Las Vegas Convention and Visitors Authority approved a multimillion-dollar sponsorship this morning of the Formula One race on the Strip for the next two years.

The tourism board previously allocated $6.5 million a year to sponsor the initial three years of the race. The new package is worth $10 million a year, but includes spending on tickets and “ancillary event costs,” which the LVCVA had previously allocated $2.5 million a year toward.

The $1 million gap between the deals largely came from the sponsorship, LVCVA CEO Steve Hill told reporters after the meeting, not the other costs added into the agreement.

“We have, right now, a pretty exceptional deal with Formula 1 in comparison to what other cities pay to host a race,” Hill said.

The newly approved spending is separate from the authority’s $12 million agreement to advertise at F1 races across the globe through this year.

Hill said the authority hopes the November race will generate an even stronger economic impact than the 2024 event, which brought in $934 million according to Applied Analytics.

The race is offering cheaper tickets, which Hill said has both increased ticket sales and overall revenue.

Construction of the course on Las Vegas Boulevard and nearby streets continues to evolve, Hill said. The initial year in 2023 was chaotic because of road paving and other infrastructure demands to build the track, officials have said.

Added workers this year will cut the amount of time lanes are closed by three weeks, Hill said, down from around an eight-week period last year.

Construction is set to start around the beginning of October, Hill said.

“People throughout the community will notice (the shorter time frame). It’s just getting much smoother, and we’ll continue to make improvements as we move forward,” Hill said. “But even this year, from last year, is going to be a much better, much easier experience.”