How the Casino Business Supports Social Initiatives

In the modern entertainment niche, consumers and investors are increasingly paying attention to the sustainability of development and the responsibility of companies. Therefore, the implementation of environmental, social, and corporate governance standards is not just a tribute to fashion but a key success factor for providers.

Experts of the Smart Money studio are going to talk about the social aspect of ESG. You will learn how operators support initiatives on gender equality, inclusivity, mindful gambling, as well as the benefits they derive. From us, it is possible to order the launch of a casino project with a guarantee of a quick payback.

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Why ESG is Important

The standards were first discussed in 2005 at an international UN conference. The organisation's chairman Kofi Annan announced 10 principles of sustainable development, aimed mainly at protecting the environment. Over time, initiatives in the areas of corporate law and the social responsibility of entrepreneurs were added to them.

Today, ESG is an integral part of a successful business strategy.

The main goals of implementing such principles:

• increasing the company’s attractiveness in the eyes of investors, credit or financial institutions, and other market participants;
• compliance with government requirements;
• building a trusting relationship with customers and B2B partners.

The sustainable development concept is gradually penetrating all business areas, and gambling is no exception.

According to the Stocks Down Under online publication, 10 out of 13 gambling firms listed on the Australian Stock Exchange (ASX) follow ESG standards.

Among them, we can name such brands as:

• Aristocrat;
• Light & Wonder;
• Ainsworth Game Technology, etc.

The principles of environmental, social, and corporate governance are becoming important investment vehicles that allow operators to attract large capital.

Modern business is on the threshold of large-scale changes associated with the popularisation of sustainable development rules. It is much easier for iGaming providers because many standards have already been implemented in the work of their enterprises.

These are ways to provide protected gameplay, mandatory software certification, responsible advertising, and other aspects strictly regulated by the state.

Social Factor in the Sustainable Development System

In the early 2000s, ESG criteria were mentioned exclusively in the context of solving environmental problems.

Today, the range of this kind of standard has expanded significantly, and the following social initiatives have come to the forefront:

• ensuring comfortable working conditions;
• gender equality;
• investment in staff training;
• decent wages.

In gambling, this also includes compliance with the principles of responsible attitude toward the placement of bids, the implementation of safe gaming measures, and the assistance to vulnerable groups of the population.

Let us consider what ESG standards are important for operators and vendors.

Corporate Social Policy

This group includes management responses in the following areas:

• labour protection;
• collective development;
• human rights;
• personnel training and recertification;
• increase the prestige of the employing company.

The issue of gender equality is urgent in modern business. In this regard, many providers are reducing the pay gap between men and women, inviting ladies to management positions or promoting projects related to career growth.

Corporate social initiatives also include timely wage indexation, provision of benefits and insurance, as well as covering training costs. Any privileges offered increase motivation and performance of employees, thus reducing staff turnover.

Healthcare and Workplace Safety

Such initiatives are typical for land-based gambling. These are mainly firms that produce equipment for casinos and also manage entertainment halls.

Investments in these aspects help to preserve and increase human capital. We are talking about the so-called “zero injury” policy. An enterprise that follows ESG principles does not lose money due to downtime, production delays, and payment of monetary compensation to affected employees.

Corporate Volunteering

This is an investment in social facilities. Providers can put their money in the construction of schools, sports grounds, or health centres, as well as support and develop educational initiatives for children and adolescents. Moreover, many iGaming brands help combat the consequences of natural disasters, wars, etc.

The charitable activities of operators have become a rather frequent phenomenon lately. As a rule, they donate funds to medical institutions and research centres that study the problems of ludomania.

Responsible Gaming

This category includes initiatives that are typical mainly for the casino and sports betting industry.

The entertainment niche is considered a high-risk economic sector. Therefore, the implementation of appropriate measures is determined at the legislative level.

To operate legally, entrepreneurs must:

• conduct mandatory verification of customers;
• provide players with self-restraint tools;
• inform the audience about the harm that the placement of bets may cause;
• follow the principles of ethical advertising.

Most jurisdictions are working to tighten the requirements for gambling brands. This has resulted, for example, in raising the age limit in Georgia or banning credit card deposits in the UK. Businessmen should either strictly adhere to the innovations or work ahead of the curve.

Benefits of Social ESG Initiatives

Project owners take the following advantages:

1. Customer acquisition. According to Forbes, 62% of Generation Z users prefer to interact with eco-brands, and 87% of respondents like to buy products from organisations that deal with social and gender inequality. This statement is true for many sectors of the economy.
2. Revenue growth. The expansion of the solvent audience quickly converts into good profits. It is important for operators to declare their commitment to ESG policies. Otherwise, they risk losing income and leading positions in the market.
3. Regulatory pressure reduction. In the casino and sportsbook niche, the share of profits affected by government management is 50–60%. Therefore, entrepreneurs should implement all accepted standards and requirements of gambling commissions in advance.
4. Optimisation of investments and assets. The implementation of ESG initiatives is an opportunity to attract large capital and increase the business’s liquidity and sustainability. In corporate governance, there is even such a concept as "social bonds". These are attractive investments for depositors with high international prestige and a quick payback.
5. Increased staff productivity. Providers with strong ESG indicators attract and retain talented employees. This directly affects the company's productivity and decreases staff turnover.
6. Strengthening the reputation of the iGaming brand. People want to be involved in global social projects, interact with firms whose values ​​​​and approach they share. The statement is true for both players and B2B partners.

Implementation of Social Initiatives by Market Leaders

Let us consider how well-known organisations follow ESG principles.

Greentube

The developer of slots and casino software promotes:

• a healthy working environment based on equity and equality;
• responsible gaming;
• support for non-profit social initiatives.

At the end of 2023, the studio, together with the Novomatic interactive division, entered the Top 5 best employers according to the Award Night Best Workplaces.

Sandra Zeinlinger, Director of Collective Management at Greentube, noted:

We are overwhelmed by this amazing result. It shows that our company is a chosen leader. Dedicated managers and employees contribute to an atmosphere of mutual respect and teamwork every day. Our staff is the key to being a good employer.

The provider's plans include reducing the gender gap, investing in education, and offering women key positions.

The leader in all 3 aspects is the Maltese division of Greentube. 47% of the branch's employees are ladies. A similar situation can be observed in management positions: 58% of them are occupied by men, while 42% are representatives of the fairer sex.

888 Holdings

The gambling corporation has created a special ESG committee, which will focus on the following issues:

• promoting safe gaming;
• combating social inequality;
• increasing community engagement.

In 2022, the firm presented the “Safer. Better. Together” program. This is a comprehensive strategy to combat ludomania. The main advantage of the concept is the employment of artificial intelligence-based systems to monitor user behaviour. This approach allows for the identification of early signs of addiction to the placement of bets.

In 2023, the provider introduced a real-time intervention tool. Thanks to it, players can set limits and receive personalised messages encouraging them to take a more responsible approach. It has been recognised as the best practice in the field of gamer protection in the industry.

John Mendelson, Chairman of the Board of Directors of 888 Holdings, noted:

We are committed to ensuring that issues such as safety, diversity, inclusivity, and community engagement are consistently included in the company's strategy.

Kindred Group

The provider is focused on several aspects:

1. Reliable customer protection. The brand has implemented a set of Safer Gambling tools. They are based on AI technologies and detect early signs of ludomania. Thanks to this, operators can undertake pre-empted intervention and support clients from the risk group.
2. Responsible regulation. The goal of the Journey to Zero initiative is to receive 0% of profits from harmful entertainment by the end of 2024. The company regularly audits its revenues with regard to age groups, jurisdictions, gaming preferences, and other parameters.
3. Effective intervention system. In just 2 years (from 2022 to 2023), the share of players who demonstrated improved behaviour increased from 82.1% to 87.4%.

Betsson Group

The firm focuses on such areas as:

• promotion of gender equality;
• mentoring and talent development;
• well-being of employees and their professional growth;
• inclusive corporate culture.

In October 2024, at the EGR Operator Awards 2024, the provider received several titles, including one in the “ESG Strategy of the Year” category.

Martin Oman, CFO of Betsson Group, summed up:

Our ongoing efforts to increase transparency and promote inclusivity have not only benefited our business but have also impacted the entire entertainment niche. This victory highlights the company’s role as an industry leader, committed to positive change, and setting an example for others to follow.

The Main Things about Social Initiatives in the Casino Field

Sustainability, based on ESG standards, is one of the most important success factors in the gaming and sportsbook spheres.

Key aspects that need to be taken into account:

• The benefits of implementing ESG principles include customer acquisition, revenue growth, investment and asset optimisation, as well as increased business liquidity. The decision to follow the concept of sustainable development helps entrepreneurs reduce regulatory pressure and strengthen the reputation of their brands.
• Popular initiatives include corporate volunteering, investments in staff training, and creation of safe working conditions. An essential component of ESG standards is the policy of careful attitude toward the placement of bets and protection of socially vulnerable individuals.
• Leaders in the implementation of such practices are Greentube, 888 Holdings, Kindred Group, Betsson Group, and other providers.

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