Stake F1 In Hot Water As Casino Commission Opens Legal Proceedings Against Title Sponsor

Sauber's new sponsorship with Stake presents both opportunities and significant legal challenges, particularly in Switzerland.

The Swiss racing team Sauber, now known as Stake F1 team, recently introduced their 2024 contender, the C44, in London, marking the beginning of their campaign for the upcoming Formula 1 season. However, their title sponsor, a crypto casino operator, has placed the team in a controversial position due to legal restrictions in Switzerland, where gambling advertising is heavily regulated.

Key takeaways:

• Controversial Sponsorship: Sauber's new main sponsor, Stake, has drawn attention not only for its significant branding on the team's car and apparel but also for the legal challenges it presents. In Switzerland, Stake's operation is illegal without a proper license, raising questions about the legality of their prominent advertising with the team.
• Compliance Challenges: The partnership with Stake necessitates creative solutions for Sauber, as gambling advertising faces restrictions in various Formula 1 host countries. Team boss Alunni Bravi mentioned the possibility of altering the team's name and sponsor branding based on local laws, indicating a flexible approach to navigating these legal landscapes.
• Legal Proceedings: The Federal Casino Commission in Switzerland has initiated proceedings against Sauber due to the unlicensed status of Stake, potentially resulting in a substantial fine. Despite this, the team remains confident in their compliance efforts, according to Bravi.

Sauber Press Image

Sauber's unveiling of their new car, the C44, alongside their partnership announcement with Stake, has undoubtedly put the team in the spotlight. Alunni Bravi, the team principal, has expressed optimism about their collaboration with Stake, highlighting the brand's global appeal and its potential to broaden the team's fanbase. Yet, this partnership introduces a set of complications, especially in jurisdictions with strict gambling advertisement regulations.

In response to these challenges, Sauber has prepared to adapt their branding and team name as required by local laws, with Bravi confirming their commitment to legal compliance. 

“As we did last year, we will adhere to all applicable laws," he says. "And if Stake is banned, we will have an alternative team name. Depending on the country, we work with Stake or Kick, a different sponsor.”

This adaptability is crucial, as the team's association with Stake necessitates the concealment of the sponsor's logos in certain countries.

The situation in Switzerland is particularly problematic for Sauber. Despite the clear regulations against unlicensed gambling operations and their advertising, Stake's branding is prominently displayed by Sauber, potentially breaching these laws. Legal expert Patrick Krauskopf, a professor of competition law at the Zurich University of Applied Sciences, told SRF the following:

“Sponsoring would be allowed. In the present case, the brands Stake and Sauber are so linked together, or the term Stake is so strongly imprinted in the minds of viewers, that we have probably crossed the red line into unauthorized advertising."

This legal scrutiny has prompted action from the Federal Casino Commission, which has opened proceedings against Sauber, posing a risk of a significant fine. 

Despite these potential legal hurdles, Bravi has reassured the public that Sauber is diligent in adhering to all applicable laws.

“We always comply with all applicable laws, including in Switzerland. And of course we took all measures to comply with them.” 

Sports Illustrated has reached out to Sauber for comment.