Speeding towards success, it’s even better than live online games; Formula 1 represents the pinnacle of motorsport with its high-speed and cutting-edge car technology. The adrenaline rush felt throughout each race is no different from that felt when playing new instant withdrawal pokies. That is why many operators are among the top Formula 1 car racing sponsors.
In this article, we will explore the impact of having Formula 1 casino-sponsored races on both the gambling and the car industry. Some factors we will look at include the impact of sponsorship on real money pokies during major Formula 1 races. We will also consider whether such sponsorships contribute to problem gambling.
Top Formula 1 drivers
Currently the Formula 1 grid is packed with great drivers like Max Verstappen at Red Bull, Lewis Hamilton and George Russell at Mercedes, Carlos Sainz and Charles Leclerc at Ferrari while McLaren has also jumped into the frame with their new upgrades and Lando Norris’s talent. Even Williams has been able to showcase their upgraded car with Alex Albon’s driving skills but most certainly the standout team of the year must be Aston Martin and their double world champion, Fernando Alonso.
The growth of Formula 1 sponsorship
The casino industry has always been on the lookout for marketing opportunities and Formula 1 stands out among the most popular sports that provide a global audience with money to spend. Therefore, it was not long before the operators approached leading motor brands to sponsor their F1 teams.
When Formula 1 started, advertising was in its infancy and ideas were far from attracting non motoring or motor-related companies to the paddock. So instead, they relied on old favourites like Shell, BP, and Dunlop who were already supplying the sport.
Then in 1968 things really changed when the legendary Colin Chapman attracted tobacco sponsorship and the Team Lotus rolled out its cars in the red, white and gold colours of Gold Leaf cigarettes. Soon the rest was history. Within months, Formula 1 teams had largely done away with the old-fashioned concept of national racing colours, and the cars became fast-moving billboards for tobacco advertising and other branding.
Fuel and oil companies also moved in quickly, as did multiple tyre companies and a few others. Motorsport thus became a popular way for companies to grow their brand awareness by decking out a racing car in their colours. And that also paved the way for sports betting operators and airlines to join in on other F1 sponsors.
The French casino group Barriere was the first notable operator to sponsor anything in Formula 1. It happened back in the early 1970s when it sponsored billboards at the Monaco Grand Prix. Since then, many casino operators worldwide have jumped at the opportunity to sponsor F1 races.
How Formula 1 benefits from casino sponsorships
While casinos sponsoring Formula 1 teams benefit from the global audience, car brands participating in Formula 1 also get to cash out early. F1 participants use the funds from the sponsors to run their Formula 1 car racing operations, including:
- Paying their teams’ salaries
- Investing in motor vehicle research
- Upgrading their racing vehicles
Recent research shows that Formula 1 Management, owned by Liberty Media, earned a record $2.5 billion in revenue in 2022. Moreover, this record revenue growth was driven by its growing global attendance and viewership making it one of the world’s most valuable sporting empires.
According to the research, Formula 1 teams make their money from F1 prize money, car manufacturers, and sponsorship deals. However, since 2021, Formula 1 has had spending limits in place for participating teams. In 2023, the limit is $135 million per team…
Motorsport technology advancement
It takes time to develop, test, and implement new car technologies. And most of the time, many technologies fail first time out. With sponsorships, it becomes affordable for companies to keep their research going without registering losses. But with racing sponsorship deals with gambling operators, car companies can comfortably fund their research operations. And they can separate their research and development operations from their manufacturing operations. It cushions their investors and helps casinos expand their operations.
Formula 1 team performance
Formula 1 teams need to pay their top talent competitively, like in other sports. It is the only way to attract and keep the best talent in the team. Therefore, it is only natural for them to fund that talent retention strategy using sponsorship deals.
Casinos benefit from worldwide brand exposure
Even the best casinos will not experience phenomenal growth if the players do not know about it. It is where sponsorship deals come in handy. Casinos get their unique logos or trademarks featured on the Formula 1 cars. In addition, when online casinos combine that with other advertising channels, they often get qualified leads, and their ad conversions grow immensely.
Apart from direct revenue growth, casinos rely on such exposure to increase their brand awareness. And it often leads to more acceptance of gambling in conservative societies as time goes by. In the end, the operators continued to expand their markets and increased social approval.
Concerns about casino sponsorships in the motorsport industry
But casino operators and Formula 1 deals often draw condemnation for promoting gambling on live TV. This is unavoidable as most car racing happens during the day, and F1 is a popular sport. And being popular means many TV stations prefer to air the races to keep their audience watching.
Therefore, it is often not enough for TV stations to avoid running commercials directly from online casinos. They still air the Formula 1 cars and circuits with logos and ads displayed prominently for all their viewers. In that regard, problem-gambling stakeholders feel F1 races do promote gambling, even among underage viewers.
Conclusion
Formula 1 has grown from having no sponsorship deals at all to having casino operators as one of their main sponsors. But there are still concerns that F1 deals with gambling operators could be promoting gambling to underage F1 fans. Therefore, it is important for online casinos to vet their players to ensure they are over 18 years old.
