‘Stake F1’ must not be present at the race in Zandvoort

Due to the increased integration of its main sponsor, the sports betting and casino platform Stake.com, the Swiss racing team Sauber has been travelling the world's circuits with the name ‘Stake F1’ since the start of the 2024 season. There was already controversy in some countries during the last racing season due to the gambling nature of the partner, meaning that the logos had to be removed for some competitions. Sauber has also faced some headwind in the run-up to this weekend's Dutch Grand Prix.

Even when Sauber, or Alfa Romeo at the time, began working with Stake in 2023 and displaying their logos on the cars and other parts of their racing business, we wondered whether the corresponding banners could really be ‘driven’ in all countries. In fact, it quickly became clear that this was not possible due to the strict gambling laws in some regions.

The underlying problem here is that many countries do not allow gambling companies to place advertisements on their territory at all or only allow them to do so if they have a valid licence in the respective country. Stake is based in Australia and has a gambling licence in Curaçao. This poses a global challenge, as this international licence is simply not recognised by many countries. In this context, sponsorship is treated legally in the same way as traditional advertising, which means that the placement of the Stake logo on the racing cars and in other visible areas of the team is regarded as an advertising measure.

This is why the racing team recently had problems in its home country, Switzerland: It was suspected that Sauber was advertising illegal gambling through the stake logos, which even resulted in a lawsuit. The local authorities criticised the fact that the Stake lettering on the racing cars, on the team website, within social media channels and in other areas is freely visible to Swiss citizens.

Now the Dutch gambling authority Kansspelautoriteit (KSA) also has Sauber on its toes. Before the Dutch Grand Prix, the KSA issued a clear warning to the racing team: Stake would not be allowed to be present for the entire weekend, as the platform is not licensed in the country. What does Sauber do now?

Stake is considered an illegal provider in the Netherlands
The Dutch Grand Prix takes place this weekend at the Circuit Park Zandvoort near Haarlem. Sauber, which has ‘Stake F1’ in its name, is one of the participating teams.

However, due to advertising regulations in the Netherlands, the racing team cannot use its full name, as it is illegal in the country (as in many other European countries) to advertise for gambling providers that do not have a local licence. Stake is not in possession of such a licence - so the platform is clearly an illegal provider. Sauber would therefore be advertising illegal gambling under his traditional team name.

However, this will not happen, as the KSA has already made the team's managers aware of this in the run-up to the Grand Prix and has instructed them not to advertise for Stake on the weekend in question. The Grand Prix officially begins on 23 August with the first practice round, with the main race taking place on 25 August. As an illegal gambling operator in the Netherlands, Stake must ‘stay out’ during the entire period.

An official statement from the KSA reads as follows:

‘We consider it undesirable for illegal gambling to be advertised at a Dutch event with the reach and size of Formula 1, partly because the event attracts a lot of attention from vulnerable groups such as minors and young adults.’
It continues:

‘KSA therefore urges Sauber and the organisers not to race under the Stake name and not to promote this provider.’

How does Sauber solve the problem?

As already indicated at the beginning, Sauber is not new to the problem of stake advertising. The team has faced similar restrictions in other countries. Qatar, Japan, Saudi Arabia, the United Arab Emirates, Singapore, Bahrain and China are among the strictest F1 hosts in terms of gambling.

In order not to violate the strict rules and to avoid serious legal difficulties, Sauber is actually changing its official team name completely in the regions concerned. In the Netherlands, too, the team will not compete under the name ‘Stake F1 Team’ and will also use a different vehicle livery and different racing suits in order to fulfil local requirements. In this case, the team will use the name of a subsidiary of the main sponsor and compete as the ‘Kick F1 Sim Racing Team’.

Conclusion

Image source: Screenshot von https://www.sauber-group.com/