ESG
shaping positive public perceptions about the sector.
advertising bans with the mandatory adoption of ESG. A well thought out ESG framework can establish clear parameters for responsible advertising, which instead of being a blazoned promotion of bonus schemes or new games, would instead promote how responsible the gaming operator is. Examples of initiatives that would be part of ESG reporting Here are some ways in which ESG can change public perception about the online gambling industry 1. Transparency and Governance: Online gambling companies can improve their governance practices beyond what is required by regulators in order to enhance transparency and accountability. This includes implementing ethical guidelines, conducting regular self-driven audits, and ensuring fair gambling practices, for example, by assisting sports associations in their sport integrity efforts. Demonstrating strong governance can help build trust with the public and alleviate concerns about the industry’s integrity
Early in 2023, the Malta Gaming Authority (MGA) announced that it had started work on a voluntary ESG Code of Good Practice for online gaming operators licensed by the MGA. This initiative, which was put out for consultation in July 2023, will create an opportunity for operators licensed by the MGA to bolster their public image with the voluntary adoption of ESG. The MGA sees the adoption of ESG as a step in the right direction in terms of positive public opinion. When they launched the ESG Code of Good Practice project, the MGA stated: “Looking ahead, we expect to see more and more companies taking concrete actions towards becoming more sustainable, and we believe that reporting such efforts contributes positively to implementing change within the sector and improving its overall perception, while also addressing the increasing demand for transparency and accountability in the industry.” Hopefully, this highly commendable approach by the MGA will be followed by other regulators who may consider substituting
Consumer buying trends are moving towards choosing companies have strong environmental, gender equality and responsible consumption credentials. This is already happening in the gaming sector and will only become more predominant.
Players
Social media can make or break you. Ordinary members of the public can influence others as effectively as a newsroom through social media. Whilst influencers are engaged to promote good stories, the public can amplify a negative message that can go viral and which is picked up by the media, politicians and regulators. Having high ESG rankings can positively reshape public opinion.
Politics is all about public perception. Politicians typically react to public opinion and if the public has a negative opinion of the gaming sector then politicians will tap into it as a vote winning/ preservation exercise. If ESG neutralizes negative public perception on gaming then politicians would not focus on measures such as advertising bans.
Public
Politicians
The ‘ESG’ Positive Perception Model
Mass media newsrooms are thirsty for bad news knowing that the public in general is inclined towards certain negative opinions. Bad news sells but an ESG framework can, in the long run, diffuse such negativity.
Suppliers such as banks and payment institu- tions are governed by CSRD requirements in the EU (including ESG). They will exclude cli- ents that can negatively affect their ESG ratings showing how important it is for the online gam- ing sector to embrace ESG and eliminate the negative perceptions that suppliers may attrib- ute to the sector.
Mass Media
Suppliers
Regulators
Regulators do not want to be associated with licensees surrounded by negative media and when they are, there is pressure on them to be seen to be taking enforcement action. Adopting an ESG culture provides more confidence to regulators and can induce them to boast about their licensees high ESG ranking.
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IMGL MAGAZINE | JULY 2023
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