arrangement with internet gambling platform Stake: Legal action initiated against Formula 1 racing team Sauber
Controversy surrounds Sauber's F1 team: Following a questionable alliance with online gambling platform Stake, Switzerland's gaming commission could impose sanctions. The team is under scrutiny for apparent violation of Switzerland's gambling ad prohibition through excessive Stake promotion.
Prohibition of gambling advertisements in Switzerland
As revealed by SRF, Swiss F1 team Sauber is suspected of violating Switzerland's current ban on adverts for gambling. The issue lies in the incessant advertising for Stake, the upcoming team's primary sponsor and namesake, which risks crossing legal boundaries.
Embodying the integration of Sauber and Stake, the team will transform into the Stake F1 Team, and Stake's prominent logos will adorn the racecar. This could potentially solidify both brands as a single entity.
The Swiss gaming commission initiated a probe to examine potential infringement on gambling and casino advertising regulations. Per SRF reports, penalties of 500,000 CHF (equivalent to 530,000 EUR) may ensue.
Sauber's defensive tactics
To circumvent the restrictions on gambling advertisements, Sauber is reportedly planning to employ inventive strategies. The team introduced the C44 in London, rather than Switzerland, where casino promotions are permitted, to encode Stake's logos somewhere else.
Given that gambling advertisements are banned in numerous nations, including Australia, Belgium, and Spain, Sauber has devised a fix. Stake's branding will remain unseen at the races held in the aforementioned countries, with Kick, a subsidiary engaged in video streaming and therefore abiding by the gambling adverts regulations, appearing instead. This contingency enables the team to continue participating under the name Kick Sauber in these countries.
Legal expert delivers a stern rebuke
Patrick Krauskopf, a professor of competition law at the Zurich University of Applied Sciences, voiced his perspective on the controversy surrounding Sauber in an interview with SRF. Krauskopf views this case as an evident breach of the advertising ban, as the bond between Stake and Sauber goes beyond sponsorship.
The overt publicity of Stake via Sauber's logo placements on the racecar, team attire, and the team's website, as well as other advertising strategies, crosses prohibited territory, according to Krauskopf.
Chilly reception for the partnership and car's design
The Sauber-Stake collaboration has been met with indifference within the industry, with spectators remaining unconvinced by the team's new identity and fans criticizing the design of the upcoming racing car.
— @stakef1team February 5, 2024
The primary responsibility for the car's design falls squarely on Stake. Consequently, the vehicle features a bright lime green livery that distinguishes it from other Formula 1 vehicles. Even high-ranking officials in Formula 1 reportedly express dissatisfaction with the circumstances surrounding Sauber.
Sauber confidently faces the challenge
However, Sauber officials maintain an unperturbed attitude amidst the impending investigation, claiming adherence to all applicable regulations. Team principal Bravi assured SRF that measures have been implemented to uphold legislative requirements.
The future of penalties or the permissibility of using the name Stake F1 Team remains uncertain, as the proceedings unfold in the following weeks.
In light of the investigation by the Swiss gaming commission, the team's potential penalty could reach 500,000 CHF if found to have violated the gambling ad prohibition by excessively promoting their primary sponsor Stake. (Embodying the integration of Sauber and Stake sentence)
Professor Krauskopf, a competition law expert, considered Sauber's partnership with Stake as an evident breach of swimming against the current prohibition on gambling advertisements, as the collaboration extends beyond traditional sponsorship. (Legal expert delivers a stern rebuke sentence)
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