In hot water
Switzerland-based Formula 1 team Sauber is in trouble with the country’s government. It announced in December that crypto gambling platform Stake is its new full title sponsor, which means that its drivers will race as part of the Stake F1 Team Kick Sauber for the upcoming season.
Federal Casino Commission has commenced legal action against Sauber
The problem is that Switzerland has strict rules about gambling advertising. Stake doesn’t have a license in the country, which has led to questions about the ability of the operator to prominently display its logo across the newly unveiled C44 car. The nation’s Federal Casino Commission has commenced legal action against Sauber, which could lead to a fine of up to CHF 500,000 ($573,532).
Talking to SRF, Zurich University of Applied Sciences Competition Law Professor Patrick Krauskopf said he believes that because Stake and Sauber are so closely linked together, they “have probably crossed the red line into unauthorized advertising.”
An issue in other countries
It’s not just Switzerland that strictly controls gambling advertising, as many other nations where F1 races take place have similar rules in place. Team representative Alessandro Alunni Bravi addressed these concerns by suggesting that it could tweak the name and branding depending on the local laws. He believes that everything will fully comply with all relevant rules and regulations.
Bravi noted that it could instead advertise live streaming platform Kick, which is also a sponsor and is owned by the same people. This would mean changing all of the Stake logos on the cars, trucks, and clothing to Kick. He thinks that the partnership will ultimately boost the global appeal of the team and help grow its fanbase.
New era
Stake will be the title sponsor for the 2024 and 2025 seasons before Audi takes over in 2026 and rebrands the team. Sauber unveiled its new C44 car on Monday in London and the gambling operator’s logo features prominently across the vehicle:
Its lineup for the 2024 season is former Mercedes driver Valtteri Bottas and the sport’s first Chinese driver Zhou Guanyu. Stake came on board in 2023 as a co-sponsor in a three-year deal reportedly worth $100m. Last year, the Kick logo was used instead of the gambling operator’s branding during races in Belgium, Qatar, Spain, and Australia. The live streaming platform will be the chassis sponsor for all races over the next two seasons.