ESG
2. Measures: Implementing responsible gambling measures is essential and a legal requirement for any regulated online gambling company. There are a range of initiatives mandated by regulators that promote responsible behaviour among customers including self-exclusion programs, setting deposit limits, and providing resources for gambling addiction support. These are already in place, however the industry may not have capitalized on them to engage with the media, and in turn educate the public that such measures demonstrate a commitment to customer well-being. So comprehensive are the support mechanisms for responsible gambling that gaming companies that adopt an ESG ranking framework can achieve higher rankings than the financial services industry on the ‘S’ element. Communicating the industry’s social responsibility can help to mitigate the negative perception of the industry as exploitative. Responsible Gambling 3. Online gambling companies can engage in social impact initiatives to improve public perception. This may involve supporting and funding initiatives related to mental health, addiction treatment, or education programs on responsible gambling. Sport betting companies can, for example, actively assist in fight against match fixing by funding educational programmes at youth sport level on the importance of integrity in sport. By actively contributing to society and addressing the potential negative consequences of gambling, companies can show their commitment to social responsibility Social Impact Initiatives: 4. Environmental Sustainability: Online gambling companies can focus on reducing their environmental impact. This can include adopting sustainable practices in their operations, such as choosing a hosting provider with a low carbon footprint, selecting office space that is environmental friendly and which minimizes energy consumption, using renewable energy sources, and implementing recycling and waste management programs. Demonstrating a
commitment to environmental sustainability can positively influence public perception by showing that the industry is conscious of its ecological footprint. through Opportunities in the workplace: Efforts have been made to provide more opportunities for women to move into key positions and to address the gender pay gap, however recent studies show that the sector is still a long way from reaching its goals. The ‘S’ and the ‘G’ typically include data on equal opportunities and a zero gender pay gap. Addressing this element, not only attracts more talent in a competitive skills market, it also enhances public perception of gaming companies which are seen as workplaces that address what really counts. The same applies at workplaces that embrace diversity. 5. Promoting Equality Let the Gaming Industry Adopt ESG There are numerous other reasons why ESG needs to be embraced by the gaming sector apart from the need to boost public perception and public opinion. ESG fosters values of responsibility, accountability, equality, fairness, ethical leadership, solidarity, and environmental protection amongst others. ESG also comes with rules for suppliers who have a mandatory requirement to have an ESG framework if they work for ESG reporting companies. These include credit and financial institutions, crypto asset exchanges and operators licensed under the EU’s Markets in Crypto Assets Regulation (MICAR), and listed B2B gaming operators. Such suppliers will be ‘forced’ by their ESG framework to supply their services/products only to like-minded corporate customers, and the voluntary adoption of ESG by the sector is one way that gaming operators can influence the behavior and practices of it suppliers. It is vital that steps are taken to improve the gaming industry’s reputation and in my view ESG may be a key tool which the industry can use to do so.
REUBEN PORTANIER Advisory and Compliance Partner, GTG For information contact: RPortanier@gtg.com.mt +356 2124 2713
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IMGL MAGAZINE | JULY 2023
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