Sauber Stake Formula 1 versus Swiss Gambling Laws
By Cobus van Wyk
Sauber, one of the most successful teams in F1, recently announced a new naming rights sponsorship deal with major online crypto casino group Stake, known for also being one of the leading minimum bet sportsbooks. Stake will replace Alfa Romeo as the team’s new principal sponsor.
Remaining under full operational control of Sauber, this new deal, in combination with existing secondary sponsor online streaming platform, Kick, will see Alfa Romeo F1 Team Stake rebrand to Stake F1 Team Kick Sauber. Stake, one of the top online casinos, has garnered attention for this partnership. Initial reactions were mixed, and for various reasons, the new branding received a notable amount of negative kickback, not only from fans, but F1 pundits, and long-time industry insiders alike.
More recently the new Sauber/Stake partnership received an unexpected setback after Swiss Federal Gambling Board, Eidgenössische Spielbankenkommission or ESBK, initiated legal proceedings against team owner Sauber. The announcement of impending legal action came in the wake of the reveal of the team’s new C44 chassis for the 2024 season in London. The Stake logo was emblazoned across both cars and team uniforms.
Background on Sauber and Stake Partnership
The partnership marks a significant milestone for Sauber, bringing a substantial financial investment into team coffers. Despite not disclosing the official figure, Stake’s partnership with Sauber Motorsport represents a major financial commitment to the team. This collaboration secured naming rights for Stake through both the 2024 and 2025 Formula One seasons whereafter Audi will become the main sponsor. It stands as a testament to Stake’s confidence in the Sauber team and signifies their shared vision for success in the world of motorsport.
As part of the partnership, the Sauber team will undergo a full rebranding, adopting the new name “Stake F1 Team Kick Sauber” for the 2024 season. The rebranding reflects the fusion of Stake’s brand identity with the rich heritage of success and expertise of Sauber in F1.
As is standard with most principal naming rights sponsorship deals, the new branding will be emblazoned across all advertising and other media as well as key positions across all team livery. This includes motorhomes, support vehicles & trailers, race cars, driver & staff uniforms, clothing lines, and other branded wearables.
Swiss Gambling Laws and Regulations
Switzerland implemented the Federal Act on Money Games (AMG) on January 1, 2019, to regulate the advertising of real money games and promote responsible gambling. It governs all types of online real money games. Its main objective is to protect consumers by ensuring that only approved, certified games are available in Switzerland’s top online casinos and to prevent illegal gambling activities.
The AMG, in accordance with its constitutional article, permits new games, including gambling at Switzerland’s best online casinos. It prohibits the advertising of unlicensed online casino real money games in Switzerland. Its rules regarding online gambling remain unchanged, making foreign, non-licensed operators who offer online cash games of chance to Swiss residents, subject to the Federal Act on Combating Money Laundering.
ESKB Investigation into Stake Sauber and Potential Implications
The investigation and potential for legal action against team owner Sauber revolves around displaying the team’s Stake name branding. If Sauber displayed their sponsor’s brand within the borders of Switzerland it would constitute a direct breach of the AMG legal framework.
Swiss gambling laws (AMG) restrict access to crypto casinos for users in Switzerland as such Swiss law classifies Stake as an unlicenced crypto casino group. The issue not only holds true for Switzerland since similar gambling restrictions will also affect official team livery in several other countries listed for races in the 2024/25 F1 seasonal world tour.
In accordance with approved, pre-determined AMG practices, if ESBK findings positively indicate Sauber/Stake to be in breach the team could face punitive penalties of up to €540,000 / $573,000 / CHF500,000!
Adaptation and Compliance Strategies
Sauber MD, and Alunni Bravi, stated that just like the previous season the team will continue to comply with all laws and legal requirements in all countries on the F1 calendar. He also said that in countries where it is illegal to use the Stake brand, the team will simply remove all Stake branding and revert to Kick as their main brand.
Sauber is based in Hinwil, Zurich, Switzerland and traditionally revealed new race chassis mostly at home in Switzerland with occasional forays into Austria and Germany. This year the team chose to break tradition, revealing its new C44 chassis for the 2023/24 season in London.
Shortly after the furore broke into the mainstream media SFBG blocked access to the Sauber website. True to its word the company abruptly removed all Stake branding from its website. Upon further enquiry, it was made clear the removal of the Stake logo was a consequence of a routine website refresh and in no way indicative of any change in the relationship between Stake and the Sauber F1 team.
Impact on Sports Sponsorships and Advertising
The ESBK v Sauber case mainly pertains to how Swiss gambling laws affect and challenge sports sponsorships. However, it stands as an excellent example how all types of professional sports at all levels continue to face similar wide-sweeping legal restrictions and challenges on an international scale.
For example, Sauber Stake Formula 1 will not only need to re-brand within Switzerland. To remain legally compliant the team will most likely also need to revert to their alternative Kick brand for circuits in Bahrain, Saudi Arabia, China, Azerbaijan, Quatar, and Abu Dhabi.
For progress, sport depends heavily on sponsorship. Advances in equipment and other technologies, travel, training, media coverage, competitor incomes, and much more all cost money. The greater balance of the necessary funding is derived from sports sponsorships irrespective of sports type, but especially true in F1, more money equates to higher performance.
All restrictions affecting sponsors not only make such partnerships more expensive it also causes them to become less effective for the sponsor which turns such propositions into less attractive avenues for advertising.
Until restrictions are no longer a factor internationally teams and sponsors have reverted to establishing multi-branding solutions. Affected teams establish partnerships with more than one brand as a major sponsor. Such solutions allow teams to undergo strategic re-branding when faced with legal or similar restrictions that teams or sponsors cannot avoid.
Going forward
In summation. Sauber established a brand naming rights partnership with online crypto casino group, Stake. The sponsorship agreement will remain in place throughout the 2024/25 F1 season.
Ironically, any advertising of Stake, its main sponsor, is banned within the borders of Sauber’s home country. Sauber will continue with their existing sponsorship deal with online streaming service, Kick as an alternative primary team sponsor in countries where gambling advertisements are subject to restrictions.
Swiss regulator ESBK not only deemed the advertising of the Stake brand illegal in Switzerland, it launched an investigation to determine the extent of the perceived transgression. Sauber stated it is committed to remaining fully compliant with all regulatory and legal requirements in all countries forming part of its 2024 F1 seasonal tour.
Irrespective of the outcome of the ESBK investigation, Sauber’s F1 season is set to kick-off with the Bahrain Grand Prix on 29 February 2024. Aside from regions where the advertising of gambling is subject to restrictions the team will continue to operate under the Stake brand. The Stake logo will be displayed in prominent positions across all team livery.
Alternatively, for races in gambling-restricted countries, the team will re-brand to display Kick as their main sponsor.
Sponsorship is the main source of sports funding. Restrictions negatively affect the appeal and benefit for sponsors. The more severe the restrictions the more costly and less effective sports sponsorship becomes, turning it into an ever less attractive avenue of advertising for sponsors.
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