Crypto Casino F1 Sponsorship Hits a Road Bump

With more countries working towards implementing a licensed online casino framework or formalising the extent to which gambling content is banned, the sponsorship loophole that crypto casinos have been using to grow their global footprint might become untenable.

Stake recently encountered the outworking of one such tightening of the legal belt when Formula One made its way to the Netherlands.

2024 F1 Sponsorship

In what appears to be a full-throttle drive to become one of the most ubiquitous sports sponsors in the world, Stake reached an agreement to become the ‘exclusive Title Partner for the 2024 and 2025 Formula One seasons’.

As Title Partner, Stake saw its branding adorn the Stake F1 Team, formerly Sauber Motorsport. The branding was added to and given a vibrant green and black revamp, highlighting the team's dual Stake and Kick.com sponsors.

The partnership benefitted both the racing team, which received considerable financial and marketing support from Stake Casino, and fans, who could participate in a range of online events, claim a variety of promotions, and enjoy real-world activities in cities around the world.

Dutch Government Says No

While everything went smoothly for most of the season, the sponsorship agreement hit a road bump in August. The problem was that this leg of the F1 takes place in the Netherlands, a country where Stake needs to be licensed to operate.

The Dutch Gaming Authority (Ksa) said:

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“The Sauber Formula 1 team competes in most international races as 'Stake F1 Team'. Stake is an international gambling provider and main sponsor of the team. Stake does not have a license from the Ksa and is, therefore, not allowed to offer gambling in the Netherlands.

Shortly before the Dutch Grand Prix at Zandvoort, the government informed the racing team that they would need to race under a different name. This would impact not only their name in the race log but also the branding displayed on the vehicle.

While licensed online casinos are legally allowed to advertise in the Netherlands, the government advised the Sauber team that having Stake branding on their vehicle would constitute the illegal promotion of an unlicensed casino and sportsbook.

A Sign of Things to Come?

While the Dutch government was well within its rights to request the removal of the Stake branding under its Gambling Act, it does raise the question of whether this will become more of a problem for crypto casino sponsorships as licensing becomes more prevalent.

Looking ahead to the remainder of the F1 circuit, Stake branding will be showcased in several regions where Stake is either restricted:

Italy: The Italian Grand Prix is scheduled for the Monza circuit from 5 to 7 September 2024.
Singapore: The Singapore Grand Prix is scheduled for the Singapore circuit from 19 to 21 September 2024.
USA: The United States Grand Prix will be held at the Circuit of the Americas from 31 October to 2 November 2024.
UAE: The Abu Dhabi Grand Prix will be held at the Yas Marina Circuit from 21 to 23 November 2024.

While many of these regions allow locals to gamble online without any pushback, they all have strong stances against advertising gambling providers who do not have licenses or, in the case of the UAE, offer a service that is considered illegal.

As these and other regions tighten their stance on local advertising and sponsorship agreements, this could extend to what international events can show during their time in the country.