The city of Los Angeles likely is collectively sighing in relief since the Entertainment Software Association decided to keep the lucrative video game trade show E3 in town through 2015.

Even though there were rumblings E3 was considering moving out because of planned construction of a new stadium that will impact the Los Angeles Convention Center where the show is held, ESA signed a new contract that will bring the show back to the city 2013, 2014 and 2015.

“We are proud to partner with Los Angeles for another three years,” said Michael D. Gallagher, CEO of the ESA, which represents the U.S. video game industry. “The city serves as a strong backdrop for the video game industry’s biggest announcements, and we look forward to remaining in L.A.”

He added, “Video games are a dominant force in the global entertainment marketplace and there is no better place to display that than Los Angeles. We look forward to continuing our relationship with the City and AEG.”

Last year’s show resulted in 30,000 total hotel room nights with a $40 million citywide economic impact, according to the Los Angeles Tourism & Convention Board.

The 2013 conference is expected to generate $40 million in economic impact and will take place June 11-13, 2013.

“It is a privilege that Los Angeles will continue to host E3,” said Los Angeles Mayor Antonio Villaraigosa.

He added, “Los Angeles is the birthplace of E3, and by returning year after year, it continues to keep the city at the forefront of technology.”

Mark Liberman, president and CEO of Los Angeles Tourism & Convention Board, said, “Not only is E3 important for the technology and video game industry, it’s also important for tourism. With approximately 200 exhibitors attending this past year plus the 45,000 attendees, we recognize that all eyes are on Los Angeles during the event and our hotels, restaurants and transportation partners are appreciative of the business gained as a result.”

E3, which is owned by ESA and produced by IDG World Expo, was first held in Los Angeles in 1995, and 2013 will mark its 17th year in Los Angeles.

How the construction project, which will include demolition of the West Hall where the new stadium will be built and a new hall will be built adjacent to the center’s South Hall, might impact E3 still is unknown.

This year’s E3 Expo had several large exhibitors in the West Hall, including Sony, Nintendo and Microsoft The majority of exhibitors are located in the South Hall.

Timothy J. Leiweke, president and CEO of AEG, the company behind the stadium project, said of E3 deciding to stay in L.A.: “It was the true collaborative efforts and partnership between the City of Los Angeles, Los Angeles Tourism & Convention Board, Los Angeles Convention Center, hospitality industry, AEG and other stakeholders with the Entertainment Software Association that gave us the ability to negotiate this significant three-year extension with one the city’s most important conventions.”