Last year Liberty Media, the owner of Formula One, announced that they were looking for new ways to generate revenues for the premiere auto racing organization.
The CEO of Liberty Media, Greg Maffei, admitted that one source of revenue they are considering utilizing is sports betting. The online sports betting industry is highly lucrative and could provide a much needed income source for F1. By connecting fans to sports betting websites, Formula One could position itself as a highly effective advertising source for companies in the gambling industry.
The Growth of Online Sports Betting
Online gambling sites, including many that provide sports betting opportunities, have seen tremendous growth in recent years. In fact, with the growth of mobile and online in general, more and more brick and mortar casinos are relying on their digital online casinos for growth. Sports, particularly, has been an area of growth and we’ve seen a variety of new sponsorship deals in Football and other sports around the world. Sports betting once required knowing the right people. Today, online sports betting has made it far easier to access sports betting opportunities.
With more and more online gambling sites offering opportunities to bet on F1 races, it’s only a matter of time before online sports betting casinos begin investing in F1 sponsorships. F1 will likely begin sponsoring individual drivers and may eventually move into sponsoring entire races. These sorts of sponsorships could be incredibly lucrative for F1 since they open up an entirely new base of companies for sponsorships, particularly companies that generally have large budgets to spend on advertising.
Digital Advertising Revenues
F1 has admitted that it’s too heavily reliant on ticket sales and physical advertisements at races, but hasn’t focused enough on digital advertising revenues. Since sports betting sites are entirely focused on digital-based gambling, they could provide an excellent opportunity for F1 to begin monetizing its digital assets in a more aggressive way. That may include online display advertisements on its host of websites as well as affiliate links that could mean big money for F1 down the line.
When Formula One rid itself of Tobacco sponsorships, they lost one of its biggest revenue sources. Tobacco was willing to spend considerably with Formula One to advertise. F1 sees sports betting sponsorships as a way to replace tobacco companies with lucrative industry players willing to spend on advertising to the right people.
The Bottom Line
F1 is looking for new revenue opportunities and the sports betting industry may just be the one they need to increase its future revenues. The industry is lucrative and is always looking for sponsorship opportunities to reach the right audiences. F1’s audiences, in particular, may be the right fit for sports betting companies since F1 online sports betting is becoming increasingly popular and sports enthusiasts are their primary target market. Only time will tell if these partnerships will come into fruition.