Since the first Grand-Prix in Silverstone on May 13, 1950, a lot has changed in the Formula 1 World Championships. Juan Manuel Fangio and Stirling Moss in the line against Prince Bira de Siam and the Marquis de Portago.
The cars were painted in their national colours, and the closest to sponsorship was a small logo of companies that were suppliers of tires and fuel. Initially, advertising sponsorship was banned. However, in 1968, BP and Shell withdrew from Formula 1, and Firestone began charging for tires. In order to increase the income of the teams, advertising sponsorship is allowed.
This move is one of the most significant in the history of F1 that created an avalanche of deals and finally led to the involvement of sports betting and casino operators.
Formula 1’s Sponsorships in General
When the grid is filled with new cars, drivers, and all the accompanying glamor, it’s hard not to wonder who pays for it all, where does the money come from? This part of the racing industry turns over several billion dollars a year and generates more and more money with each new season.
Teams compile budgets from sponsor income, TV rights, fees they receive from race organizers, and many other sources. Nearly 40 percent of the budget comes from TV rights, 30 percent is alimony from race organizers, 25 percent is sponsorship money, and five percent comes from various other sources.
The gambling industry sponsorship and Formula go very well together for several good reasons. For example, they successfully combine interesting slot games and Formula themes, so it is possible to play slots that focus on car racing motifs.
You can check them after reading the Allslots NZ review where some of them are emphasized. As you already know, the betting industry is growing at an exponential rate, and therefore Formula is also expected to embrace a new gambling sponsor every now and then.
Why a Gambling Company Deals with F1 Sponsorships
According to the latest news, some of the most renowned online entertainment hubs entered the Formula sponsorships for more than understandable reasons. We already elaborated on the growing number of racing-themed online casino games that you can play for free or for cash, which surely tops the list of motifs for blending two industries.
Working with Formula teams gives them an opportunity to reach out to a fan base whose passion for sports betting goes well beyond motorsport. To be able to appeal to an audience of this size while still focusing only on the regions that are important to us makes a very exciting prospect for both operators and software providers. Moreover, this allows them to help a brand target specific regional audiences through sport events on television.
Eventually, in a country where gambling firms are forbidden, a sponsorship deal enables them to advertise and pass strict regulations. One could call this move shady, but things are what they are.
Just recently, a reputable operator has entered the Asian market and signed an exclusive contract with rights reserved that allows them to support F1 actions and races in Asia. The deal is planned to run until 2024 and if things go as planned, maybe there will be an extension.
In particular, the contract enabled the betting operator to showcase its brand on a virtual advertising trackside that will be displayed on all events on the continent. This further fosters interregional sports events in both racing and betting.
The Next Chapter in Sponsoring
Crypto.com, a platform with a required 10 million users, will become a global partner for Formula-1 racing, including the new Sprint series. The crypto company will also announce a new award at the Turkish Grand Prix and become its irreplaceable token NFT partner. Knowing that many new casinos now rely on crypto, we are witnessing the next chapter that may combine three aspects of sponsorship deals.
At the forefront, we have gambling companies investing a lot in new online venues and targeting the widest possible audience, especially those into different niches such as F1, or other sports-themed slots.
The second area of interest is the flying circus that Bernie Ecclestone patented and brought to the level we know.
Finally, cryptos are here to enable anonymous transactions between all parties involved. We see many fans of casinos and sports betting tempted to taste not a single but triple satisfaction while gambling for real money.
Challenges to Overcome
When Bernie Ecclestone was in charge, the F1 series stayed clear of any gaming industry sponsorships. It took more than 40 years for such companies to find their place, but new owners are more open and willing to embrace the gaming industry sponsorship from this constantly growing niche.
In fact, they have reasons to believe that the blend of two will inspire players to take more gambling activities in a secure and successful manner.
Next to the criticism of F1 and online gaming mixture, some people opposing the idea also want to resolve the influence of sportsbooks on the increase of gambling-related problems.
Along with bans that certain countries have recently posted, this is the main challenge for all betting companies, even though it is a bit hard to measure and display quantitatively.
Concluding Remarks
Money from sponsors certainly plays a role in all motorsport competitions, and through the decades to this day, some of them have become legendary. This is maybe because of the success of the specific car, which was “solved” by the specific advertisements of the sponsors, perhaps due to the pure aesthetics – they simply looked beautiful on bolides.
To date, some of the sponsorships have already become cult and part of popular culture and there is no doubt that the growing number of gambling sponsorship deals in years to come will benefit both industries.