The Formula 1 calendar has been getting so much attention over the years that more industries are partnering with stakeholders in this sport. And more recently, the focus has been on gambling partnerships.
Take the example of casinos. Whether the race is taking place in Australia or the Vegas Circuit, many casino operators, including the upcoming Bitcoin casinos, have often chosen to partner with Formula 1 teams.
The idea here is that since both industries offer thrill and excitement, their partnership will be highly profitable. And they have been right. But does this mean that gambling could soon be Formula 1’s top partner? We look at the reasons behind this strategic partnership.
The ties between gambling and Formula 1
When we talk about gambling, we are referring to either of two options. The first option is casino gambling, where players engage in games of chance or skill in the hope of winning. The second is where punters wager money on sports events by picking a likely outcome and getting paid if they are right.
So, when we talk of the gambling industry, we group casino operators and bookies as one. So, why would Formula 1 partner with the gambling industry, and how will this affect F1, commercially, in the future?
1. Audience diversity
If you look at the Formula 1 fan base, it’s clear that younger people are paying attention to the races, especially since more movies and songs are glamorising this world. But unlike the previous generations, which were perfectly okay with watching the races and placing wagers on the outcomes, younger people crave to be part of the races.
As such, F1 has been working with gambling companies to meet this need by offering gambling opportunities to these audiences. How? Gambling companies are launching social media campaigns that involve fans at all stages of the events, thus creating hype and giving them a behind-the-scenes experience. They are also offering lucrative bonuses and promotions geared toward these younger people.
But that’s not all. Since the goal is to ensure that people remain invested in the races throughout the calendar, gambling companies have gone a step further to include the following:
- Live bets. Fans are now able to take advantage of the small changes that take place in the race by betting on events that will happen within the same race.
- Prop bets. These are smaller wagers based on more specific events, such as the team that will have the fastest pit stop.
- Futures. These bets focus more on the future. For example, which driver will win the World Championship?
With all this going on, younger fans are able to feel like they are part of the action. What’s more, if they do their research, they can make correct predictions and walk away with handsome payouts.
2. Mutual financial benefits
At the end of the day, Formula 1 and gambling companies are in business. And just like any other business, they are in it to make money. So, how does this play out when it comes to potential F1 partnerships?
Let’s start with Formula 1. It takes a lot of money to compete at the F1 level. Think of all the money that goes into research, training, development, and operations. It’s quite a lot. And the teams that are able to invest a lot of money are able to give the others a run for their money.
With the gambling industry coming in as a sponsor, Formula 1 teams are able to invest more in their operations, enabling them to compete at the highest possible levels.
But again, we did call this a partnership. So, how do gambling operators benefit? As much as they invest a lot of money in the Formula 1 teams they partner with, they also get a lot in return.
How? Well, they get to advertise their products and services to the Formula 1 fan bases, which they do through placing their logos on the cars, team apparel, team websites, and more.
This type of marketing exposes them to a whole new market, which then invests in their services, resulting in additional sources of income. When you look at it this way, it’s clear that everybody wins.
