Formula One has revealed a long-awaited new sponsorship arrangement. We owe this new agreement to the Interregional Sports Group (ISG), the motorsports’ worldwide data and betting sponsorship rights partner. At the heart of this agreement between PokerStars and Formula 1, PokerStars has been named as the team’s official European betting sponsor. PokerStars has also been awarded the world’s largest online betting company, making this is a big endorsement for Formula One.
This deal, which was able to go ahead thanks to the Flutter International-owned brand, Vizrt, will display exclusively across European TV coverage. Vizrt’s virtual advertising technology allows fans to fill their boots with all of the Formula 1 season till 2023.
With the creation of this new deal, Formula 1’s betting sponsorship portfolio has grown. They already have a five-year deal with 188Bet, which they signed last March. As a result of the agreement, they were able to become the series’ first betting sponsor in Asia. This former contract was worth at least $8 million each season. If the prior contract was any indication, this newly formed deal will be a huge success.
The Asia-focused partnership was first regarded to be ISG’s most valuable betting sponsorship deal. This prediction is based on the betting market’s strength in the region. The fact that Europe is the world’s largest television market for motorsport is said to have influenced the value of the PokerStars contract. Not only that, but it is also due to being a crucial market for Flutter Entertainment.
The ISG firm, which focuses on virtual advertising technologies, claims to be in talks with up to seven regional sponsors. From 2020 through 2024, these arrangements are expecting to pay off a $100 million or $20 million per year investment in a five-year agreement to market F1’s betting sponsorship and data rights.
A first for Formula 1
According to ISG, F1 has been able to improve its approach to target betting companies for the first time due to digital replacement technology (DRT). Sponsor branding is visible on all sides of the trackside area, but only in specific broadcast zones. This is both a watershed moment and good news for racing, which has struggled to attract betting sponsors in the past. This difficulty emerges as few bookies operate globally or have the financial means to agree on a global sponsorship agreement.
In Europe and Asia, racing is concentrating on regional betting sponsorship deals. Before extending to other regions of the world, they also plan to travel across the Americas. In the future, Russia and Latin America are expecting to provide more appealing choices. Flutter Group and ISG are happy to have formed this new collaboration in order to expand.
Combining PokerStars’ global appeal with this personalized strategy for engaging fans who have many of the same traits as the PokerStars community opens up a lot of room for innovation and deeper engagement between the two great brands. This is crucial not only for ISG but also for PokerStars as working with Formula 1 allows us to reach a fan base with a passion for sports that goes beyond motorsport.