The vehicle driven by Wheldon, who was sponsored by Justin Timberlake's William Rast fashion line at this year's (11) Indianapolis 500, was thrown into the air after hitting another car, before it crashed into a nearby fence at the Indy 300 event.
Wheldon, 33, was airlifted from the Las Vegas Motor Speedway track to the local University Medical Center, but died from his injuries.
IndyCar CEO Randy Bernard says in a statement, "IndyCar is very sad to announce that Dan Wheldon has passed away from unsurvivable injuries. Our thoughts and prayers are with his family today.
"IndyCar, its drivers and owners, have decided to end the race. In honour of Dan Wheldon, the drivers have decided to do a five-lap salute."