The Dutch Gambling Authority (KSA) issued a  directive to Formula 1 and the Sauber racing team, prohibiting them from promoting the unlicensed gambling company Stake during last weekend’s Formula 1 event in Zandvoort. As Stake lacks the necessary licensing, KSA indicated that it is illegal for the company to offer gambling services in the Netherlands. Sauber competes as the Stake F1 Team in most international races and is sponsored by Stake, an international gambling provider.

Concerns about vulnerable groups

The KSA expressed concerns over the large-scale advertisement of illegal gambling at a high-profile event like Formula 1, especially as it attracts significant attention from vulnerable groups, including minors and young adults.

The 4H Agency reported that the Sauber team ultimately complied with the KSA’s demands by rebranding as “Kick Sauber” for the race. However, the Stake logo was retained on the cars and equipment, raising questions about the legality of this move. The KSA has not yet disclosed whether any sanctions will be imposed on the team for keeping these logos.

Expert Insight from Ivan Kurochkin

Ivan Kurochkin, Partner and Head of the Eastern European Department at 4H Agency, commented on the situation, highlighting the tensions between international sports teams and local regulators regarding advertising and sponsorship. “Teams like Sauber are eager to secure major sponsors like Stake to ensure financial stability and competitive performance. However, local regulators are equally determined to protect their citizens from exposure to unlicensed and potentially harmful gambling operators,” he said. The Netherlands is particularly stringent about gambling advertising, especially in efforts to protect young people from gambling harm. As the online gaming industry continues to grow, sports teams may increase their sponsorship deals, potentially leading to stricter regulations and further conflicts. If similar incidents occur in the future, regulators might resort to more severe actions, such as banning teams from competitions or imposing heavy financial penalties. This could force clubs to seek out more reliable partners and adjust their marketing strategies based on the jurisdiction they operate in.

Rise of Betting Sponsorship in Formula 1

In recent years, Formula 1 has seen a shift in sponsorship trends, with more online betting and gambling companies entering the scene. This growing presence has sparked discussions about the sport’s image, financial dynamics, and the potential impact on its global fan base. Traditionally, Formula 1 teams have attracted sponsors from the automotive, technology, and lifestyle sectors. However, the influx of online betting companies reflects a broader trend across many sports, where the gambling industry is capitalizing on the global appeal of competitions. The sponsorship landscape in Formula 1 has evolved, with both prominent and lesser-known names from the online betting industry now featured on the gear and uniforms of some of the sport’s most iconic teams. One of the most notable examples is Stake F1, the rebranded Sauber F1 team, which had been known as Alfa Romeo Racing for the past five years.