Corporate Social Responsibility; iGaming Industry and the Value of Community Investments

Corporate Social Responsibility (CSR) is becoming a big deal for companies in every industry. Even the gambling sector is catching on to this trend.¹

Corporate social responsibility (CSR) is about businesses taking full responsibility for their impact on society. Industries perform differently in these areas, with companies that create or exacerbate problems often receiving poor evaluations.

In this article, you will learn how corporate social responsibility can improve the quality of service the gaming industry offers.

Corporate Social Responsibility for iGaming Companies

Ever since the rapid growth of online gambling, gamers and game providers have been collectively working to focus on corporate social responsibility (CSR) in the industry. However, unique aspects of CSR need to be addressed accordingly. These aspects include workplace, environment, community, and responsible gaming.

Unfortunately, the iGaming industry is struggling significantly in these areas. Problem gambling is one of the rising issues that have had fingers of accusation pointed at the iGaming industry and gambling operators following the high rate of young adult involvement.

iGaming industry: Investing in Community Through Positive Impact

There are two primary channels through which the iGaming industry has and will continue to contribute to the community’s growth and quality of life. These channels are:

1. Sponsorship

Community engagement, such as sponsoring local events and supporting organizations that share similar values, is a good starting point. It is amazing to see how these small actions can make a big difference in our community.

Findings have revealed that the Ontario Lottery and Gaming Commission (OLG) has given $40.3 million to 29 different communities in Ontario².

2. Partnership

Another form of community investment is partnership with charities, research institutions, and advocacy groups focused on preventing and treating problem gambling. Working with these bodies helps develop practical solutions and support the community.

In a recent update, the OLG revealed they gave $40.3 million to municipalities with gaming facilities during the second quarter. This money helps support important things like building and repairs, creating jobs, and boosting the local economy. The OLG ensures that the money is distributed fairly across the province, using a specific formula to calculate the payments.

The OLG has given back $83.8 million to communities since April 1, 2023. Ontario’s Minister of Finance, Peter Bethlenfalvy, emphasized that the OLG plays an essential role in funding projects that make local infrastructure, parks, and healthcare better, which ultimately improves people’s lives.³

CSR: The Way Forward for the Gambling Industry

Having a transparent corporate social responsibility policy is a good start to tackling the problem of gambling, which has been the lead cause behind the recent attack on the iGaming industry. Here, you will learn why the gaming industry needs CRS to foster a better gambling experience for gamers.

1. CSR Goes Beyond SE and RG

Every casino and betting site in Ontario displays messages on responsible gambling (RG). You’ll find them on-site at land-based casinos and gaming centers and in the small print on their respective websites. These messages are mainly put out there only to satisfy state regulations, but they don’t seem to do much good. Research shows that non-gamblers pay more attention to RG messages than actual gamblers.

Casinos in Ontario are also legally required to offer a self-exclusion option. Self-exclusion (SE) programs can help keep problem gamblers away from physical casinos in their areas. However, these programs don’t work as well for online gambling.

Companies that publish CSR reports take a more proactive approach. They don’t just offer helplines and self-limit options; they also have solid principles and systems for responsible gaming. These companies educate us, their employees, and the public about preventing gambling problems. It’s a much more hands-on way to support everyone involved.

Responsible Gambling (RG) and Self-Exclusion (SE) aren’t enough for true Corporate Social Responsibility (CSR). If the iGaming industry wants to win over regulators and the general public, it must step up the game.

2. Growing Backlash from Regulatory Body Backlash

There is a growing backlash against gambling operators from both the public and the government. Some state regulators who initially supported the legalization of sports betting are now on the verge of turning back on game providers following the rise of problem gambling addiction.

A publication by the New York Times titled “First Came the Sports Betting Boom. Now Comes the Backlash” highlights how regulators are intensifying their scrutiny of the iGaming industry’s advertising and player acquisition practices due to concerns about the potential public harm this can cause, especially to young adults since they are the most involved. In the U.S., for example, states are now paying attention to actions taken in Canada, where athletes and celebrities are now prohibited from endorsing gambling.⁴

While Canada may not have a domestic jurisdiction for casino gambling, the excitement and rewards of online gaming are still within reach. By choosing reputable international online casinos, Canadian players can enjoy a safe, secure, and exhilarating gaming experience.

As a gambling operator, it’s crucial to be proactive in addressing the growing concerns around gambling and mental health through a comprehensive CSR policy. When solid corporate social responsibility exists, regulated gambling can thrive alongside strong community mental health initiatives. The key to surviving the impending regulatory changes in 2024 is committing to comprehensive support for problem gambling within CSR programs.

Gambling operators that are already controversial should focus on minimizing their inherent risks rather than engaging in charitable activities like community investment. By addressing these core issues and aligning with stakeholder expectations, gambling operators can significantly improve the industry’s reputation.

3. CSR Empowers Employee Acquisition and Retention for Gambling Operators

CSR is so important for gambling operators in Ontario. It’s not just about keeping employees happy and healthy; it’s also about creating a positive work environment that helps to retain the best employees and attract new talent. Studies have shown that gambling companies with vital CSR programs tend to have more engaged employees who stick around longer. According to Zipdo, 76% of workersexpect their employers to be socially responsible and prefer to work for companies that make a real effort to the community.⁵ In the gambling industry, where HR can be quite challenging, having a dedicated and loyal team is crucial.

4. Enforce Industry Leadership

Implementing support systems for problem gambling isn’t just an ethical choice; it’s essential for staying competitive in the industry. Leading gambling operators like BetMGM and DraftKings have already partnered with Kindbridge Behavioral Health to create mental health access programs for problem gamblers, starting in Colorado. More companies in the iGaming industry can join this movement to set a new standard in corporate social responsibility within the gambling industry.

Implementing Responsible Gambling Practices

CRS is vital for gambling industry businesses in Ontario, especially SMEs, to promote safe gambling practices. Ensuring customers’ well-being should be a top priority, and there are several ways to achieve this.

First, it’s essential to offer easily accessible information, including self-assessment tools and contact information for support organizations. Training staff to identify and assist customers who may be experiencing gambling-related issues is also essential.

Players should be able to set their limits on deposits, wagers, and time spent on gambling. This helps individuals maintain control over their gambling habits. Additionally, self-exclusion programs should be available, allowing customers to voluntarily ban themselves from gambling for a set period, with the option to extend the exclusion if necessary.

Educating customers about responsible gambling is crucial for maintaining a healthy gambling environment. SMEs should provide clear and straightforward information about the risks associated with gambling. This information should be easily accessible on the company’s website, mobile apps, and other communication channels to ensure customers can find it whenever needed.

1. Gambling’s community contributions: does the community benefit? Written by Louise J Francis and Charles Livingstone, published by Researchgate

2. Ontario Lottery Gives $40.3M to Local Communities, written by Rowan Fisher-Shotton, published by GambleOntario

3. According to the Ontario Lottery and Gaming Corporation (OLG), 83.8 million invested into communities (Ontario) starting from April 1, 2023. Written by OLG media, published by OLG 3

4. First Came the Sports Betting Boom. Now Comes the Backlash, written by Eric Lipton and Kevin Draper, published by The New York Times

5. According to Zipdo, 76% of workers say they expect their employers to be socially responsible and prefer to work for companies that make a real effort to the community; written by Zipdo, published by Zipdo.

Other articles from totimes.ca – otttimes.ca – mtltimes.ca