Formula One Welcomes Sports Betting with $100 Million Deal
Formula One will officially be welcoming sports betting, following a deal with a UK-based marketing agency. Formula One has traditionally distanced itself from sports betting, but with this new deal, it looks to embrace gambling on races.
Formula One Breaks with Tradition
The deal was between F1 and Interregional Sports Group, which is a marketing agency based in London. The company will soon start selling marketing opportunities to sports books around the world. Companies will be able to market using trackside branding, as well as screen graphics during the races. The official cost of the deal hasn’t been made public, but it is believed to be at least $100 million.
Formula One was acquired by Liberty Media, an American media firm, in 2016. The deal reportedly cost $8 billion. Before this, the sport was run by British business magnate Bernie Ecclestone. Ecclestone had stayed away from sports betting, as he believed it went against the glamorous nature of the sport. However, Liberty Media has different ideas and is keen to explore new ways of making money.
F1 Offers International Opportunities
Formula One is the pinnacle of motorsport and has massive international reach. This presents plenty of opportunities for betting companies. Many betting companies have a difficult time getting exposure in many Asian markets. Thanks to the sport’s global reach, it makes it difficult for countries to exert pressure on the sport. An example of this is how Formula One continued to have tobacco advertising, long after many countries had banned it.
Liberty Media also announced a partnership with Sportsradar, a global sports integrity company. Sportsradar will be used to spread information from F1 races to sports books around the world, to help with in-play betting markets. In addition to this, it will monitor all sports betting for suspicious activity.