How Sweepstakes Brands Are Accelerating into Motorsport Sponsorships
There are several examples of gambling sponsorship in motorsports, especially Formula 1. Big-name gambling companies like Stake have taken the opportunity to advertise their brand by backing teams and races.
In the case of Stake, the crypto gambling company is the current title sponsor of Sauber until Audi takes over in 2026. The team’s rebranding as Stake F1 Team Kick Sauber comes after Alfa Romeo ended its association with Sauber when its sponsorship deal ended in 2023. Although Stake’s deal with Sauber is only for two seasons, it reflects an ongoing relationship between gambling firms and motorsports.
This relationship benefits both parties by enabling gambling brands to advertise their offering and allowing Formula 1 teams to acquire valuable funds that can be spent in areas such as development and improved operations. However, there is a potential legal issue with these sponsorship relationships.
Legal problems in certain jurisdictions
Teams may face problems with gambling-related sponsorship in geographical areas with strict gambling regulations. Stake’s sponsorship of Sauber is a good example. To overcome issues with gambling restrictions, the team brands itself as the Kick F1 Team in countries including Australia, Spain, Belgium, and Qatar. The Kick name comes from the video streaming company Kick Streaming Pty Ltd, which is backed by Stake’s co-founders.
Interestingly, the Stake brand has also ventured into the world of sweepstakes casinos. This could make it easier for the brand to sponsor motorsports in jurisdictions with strict gambling regulations, due to the way sweepstakes casinos operate.
These sites allow users to play a full catalog of top casino games, including slots and live dealer games, without spending any cash. Players use virtual currency, usually known as gold coins and sweeps coins. They get access to free coins and can also buy additional packages. Players do not win real cash while playing, but they can win sweeps coins that can be redeemed for prizes, including cash and gift cards.
Sweepstakes sites are not subject to traditional casino licensing in some countries
Operating in this way means that in some countries sweepstakes casinos are not subject to the same licensing and regulatory requirements as traditional gambling sites. This means that the number of sweepstakes casino operators is expanding, especially in countries like the US, where players have access to a selection of trusted sites to visit. As the market grows, it presents opportunities for operators to sponsor teams and races in motorsports.
Not operating as a traditional gambling site may make it easier for them to sponsor teams and events even in countries with strict gambling regulations. However, as these operators explore motorsport sponsorship opportunities, they will be aware of potential pitfalls. For example, more countries may follow the lead of the UK, where sweepstakes are strictly licensed.
If this happens, teams with sweepstakes casino sponsorship may experience issues similar to those facing Sauber with its Stake sponsorship. In the meantime, sweepstakes brands will likely search for opportunities in motorsports sponsorship, especially in countries like the US, where sweepstakes sites are not licensed as they are not considered part of the traditional gambling landscape due to the lack of direct real cash spend to play the games.