Last week, Stake.com, the cryptocurrency-based platform based, revealed a sponsorship agreement with Formula 1 team Sauber Motorsport. However, shortly after, legal action was initiated against Stake.com in Switzerland, Sauber's home country.

The Swiss Federal Gaming Board launched an investigation into the partnership, as only entities with gambling licenses, such as Swiss land-based casinos, are permitted to advertise in Switzerland.

Additionally, the Federal Casino Commission has taken action, saying that it has initiated proceedings against Sauber. There is a potential fine of up to 500,000 francs at stake.

From SRF Swiss Radio and Television:

In addition to a lot of money and new fans, the new main sponsor also causes a lot of problems. The reason: There are restrictions on gambling advertising in several countries hosting Formula 1 races. Bravi says: “As we did last year, we will adhere to all applicable laws. 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.”

In everyday racing this means: In certain countries, all Stake logos on the cars, team members' clothes, trucks and must be covered or replaced, probably with the “Kick” logo. In these countries, the racing team from Hinwil will not be competing under the team name “Stake F1 Team Kick Sauber”, but under a different name.

Sauber is probably violating the advertising ban with Stake

The new main sponsor is also causing problems for Sauber in Switzerland, because the gaming provider Stake does not have a license in this country and is therefore illegal. This is associated with an advertising ban. Nevertheless, the Stake logo is omnipresent on the website of the Swiss racing team Sauber, its social media presence and on the clothes of its employees.

For legal expert Patrick Krauskopf it is therefore clear: Sauber is probably violating the advertising ban: “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," says Krauskopf, who works as a professor of competition law at the Zurich University of Applied Sciences.
In a statement to Racing News 365, a Stake.com spokesman said:

"We are in close contact with the Swiss Commission, and we are following all the regulations

"It is a completely routine situation. Everything is above board, above ground, and the rules are being applied.

"It is the same procedure as last year with the Swiss Commission when Stake joined us as a partner.

"And our situation is no different to that of Williams when it had to change its livery on occasion for certain grands prix."
Read more here: https://www.srf.ch/news/internationa...m_medium=email