How Casinos Support Social Initiatives and Improve Their Image

ESG Standards

The term “Environmental, Social, and Governance” was introduced by UN Chairman Kofi Annan in 2015. At that time, the main emphasis was placed on the ecological parameters of doing business, taking into account global warming and the negative impact of industry on the environment.

Today, all ESG principles are of great importance. Many companies pay attention to social initiatives, given the growing gender inequality and general tension worldwide.

Gambling projects are an excellent example of the implementation of such initiatives and a benchmark for representatives of other sectors of the economy.

The social norms developed by the UN Assembly address the following issues:

• protection of human rights;
• ensuring safety and privacy;
• combating addictions;
• gender equality maintenance;
• support for the quality of working conditions;
• commitment to inclusivity (hiring people with disabilities, as well as representatives of racial and sexual minorities);
• ensuring confidentiality;
• involvement in social projects, and much more.

Why It Is Important to Adhere to Social Management Norms

There is a widespread belief that gambling is a business with a low level of responsibility. The word is distributed by many politicians and activists, as well as ordinary citizens who were simply unlucky in the game. But the real state of affairs is somewhat different.

Entertainment for money is absolutely legal. Companies that provide services of this kind bring tens of millions of dollars to the public treasury in the form of:

• taxes;
• duties;
• deductions;
• licence fees.

iGaming brands create thousands of jobs, invest in large infrastructure projects, and donate funds to charity. All these initiatives do not go unnoticed, so the negativity regarding the casino and sportsbook industry is rapidly decreasing.

Benefits of following social ESG standards:

Positive Image

Employment creation, confidentiality assurance, and gender equality maintenance have a good impact on the reputation of enterprises. Thanks to this, firms are associated with honesty, transparency, and a responsible approach to administration.

The launch of social projects is an excellent newsbreak that can be used in a marketing strategy. Today, more operators are building their advertising campaigns not around an interesting and profitable game but with an emphasis on the work done in the field of ESG.

Special ratings also have a strong influence on public opinion. Their implementation can play a key role in creating a positive image of iGaming companies.

Effective Risk Management

Entertainment enterprises face various threats on a daily basis:

• fluctuations in the labour market;
• changes in the regulation;
• spread of ludomania in the region;
• illegal distribution of personal data, and much more.

Implementation of social ESG initiatives allows operators to prevent risks, as well as effectively manage their companies in the event of a crisis.

For example, a well-thought-out internal HR policy reduces staff turnover and improves overall employee productivity. Business owners are not afraid to invest in training specialists because, in this case, they will not be looking for a new job in the near future.

The conduct of meetings, conferences, and other events that involve people working for the firm increases their interest, awareness, and commitment to the corporation’s values.

Progressive Regulation

The promotion of responsible placement of bets measures is one of the ESG principles, as well as the main requirement of gambling commissions. Operators must take the problem of the development of ludomania very seriously, implement all the necessary mechanisms, and immediately block those users who violate the rules.

Today, most authorities only recommend that entrepreneurs implement ESG initiatives. For example, at the end of 2023, MGA published the Code of Conduct for visitors to online casinos and sportsbook sites.

The document divides 19 ESG topics into environmental, social, and governance categories. It also introduces 2 reporting levels for entertainment brands: basic and advanced.

Huge Investments

Implementation of social initiatives increases the value of iGaming platforms in the eyes of B2B partners and sponsors.

The term “Socially responsible investing” is actively used in business. This is an approach to the selection of financial instruments based on moral and ethical principles. Potential investors prioritise not only the financial and economic parameters of companies but also the level of ethics and adequate approach to the placement of bids.

SRI bankers exclude the infusion of funds in the enterprises engaged in:

• the exploitation of labour;
• production of weapons;
• alcohol and tobacco delivery.

Until recently, gambling was also included in the list of prohibited activities, but today, much has changed thanks to the social initiatives of casino brands. For this reason, athletes, bloggers, and other famous people often appear on large banners and advertising posters.

They promote betting and participation in lottery drawings and once again confirm that such activities are completely legal.

The positive information field around the industry attracts multimillion-dollar investments to the niche. Entrepreneurs receive a stable capital inflow, and investors get a guarantee that their money will work in the legal sector of the economy.

Simple Implementation

The use of the described principles is a “quick win” for the casino and sportsbook sphere. It already has a strong foundation for ESG due to the highly regulated environment.

Many principles of this type are already built into the structure of relevant organisations, giving them an advantage in a highly competitive market.

How iGaming Brands Implement Social Initiatives

Let us consider the experience of the world’s most well-known operators and providers of casino solutions.

Playtech

The Estonian manufacturer is one of the leaders in promoting fairness and an inclusive culture:

1. Secure call line. The company has launched an independent hotline, Speak Up, which allows employees to confidentially and anonymously report their wishes. They can talk about their concerns in a responsible, relevant, and effective manner without fear of criticism or retaliation.
2. Well-thought-out HR structure. Playtech pays great attention to the selection and adaptation of specialists, their personal growth, equality, and inclusion. The vendor provides comprehensive training and health programs for all hired personnel. The brand has a successful mentoring program.
3. Global charitable foundation. It is designed to give financial support to colleagues and their immediate families who may face unexpected problems. This can be serious illnesses or money difficulties.

Entain

The firm’s social strategy is based on several principles:

• leadership in the implementation of Responsible Gambling mechanisms;
• release of modern platforms with an emphasis on the protection of confidential data;
• creation of a professional environment in which everyone can do their work;
• positive impact on the entertainment community.

In 2023, the company presented its proprietary ARC user protection program. Currently, the product is approved in 27 jurisdictions, including the United Kingdom, Ireland, France, Sweden, and other countries.

The operator has committed to spending 1% of its GGR in the UK on exploring the issue of ludomania. In 2023, the amount of allocated funds was £18.7 million.

The enterprise manages Entain Foundation, a charitable organisation. It sponsors various social initiatives all over the world and also supports players with gambling addiction.

888 Holdings

A well-known provider has created a special ESG committee. The purpose of the structural unit is to ensure that such aspects as safe betting, diversity, and community engagement are part of the brand’s overall management strategy.

Key social principles of the vendor:

• creation of a fair, favourable, and positive working environment;
• development of an inclusive culture based on respect, care, and commitment to the company's policies;
• involvement of local communities.

In the UK, 888 Holdings cooperates with the Retired Greyhound Trust, a welfare institution. By the end of 2023, the size of donations reached £250,000.

The firm invests in the education of its employees. Last year, 250 people completed specialised courses and received certificates: Professional Scrum Developer, ACCA, Kubernetes, etc.

The Main Things about Social ESG Initiatives

Gambling companies actively adhere to such principles.

Key features that project owners need to take into account:

• Implementation of ESG standards has a positive effect on the operator's image. They increase the efficiency of risk management, help to comply with the regulator’s requirements and attract huge investments.
• It is easier for casino enterprises to follow these rules than for their colleagues from other sectors of the economy. The social element has been controlled by the authorities for many years. The main attention is paid to the principles of responsible gambling and support for vulnerable individuals.
• Playtech, Entain, 888 Holdings, and other top providers stand out among market leaders in regard to the implementation of ESG practices.

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