One of the most discussed topics in the entertainment niche in recent years is the cautious attitude toward the placement of bids. Today, this is not just a regulatory requirement but also a global trend.
Experts of the Casino Market studio will explain how and why operators need to implement responsible gaming principles.
About the Concept
It is rather broad and refers to a set of policies aimed at preventing or minimising negative consequences associated with casino products. The phenomenon also ensures safe betting practices and contributes to creating a transparent and legal market.
The term was introduced in the 90s of the last century. It became actively used in the early 2010s when online entertainment platforms were becoming popular.
Today, the concept is part of the overall business strategy of companies and an important requirement of regulatory bodies.
The essence of the cautious attitude toward bid placement is to prevent a situation in which a person turns from an ordinary player into a victim due to their life situation and the circumstances artificially created by operators.
Owners of gaming sites implement various protective measures, from timely user verification to setting limits on the cost of spins and time spent in the casino.
Entrepreneurs are essential for the spread of such principles. However, their formation depends on all market participants:
- players;
- B2B partners;
- the state represented by the Gambling Commission.
It is worth noting that in recent years, the role of regulators has increased significantly. If, from 7 to 10 years ago, an honest approach to organising entertainment for money was considered a good form, then today it is a prerequisite for the legal management of casino projects.
The authorities can easily revoke the licences of operators if their work raises questions.
Responsible Gaming Measures
There is no single list of such rules. Each jurisdiction independently determines what exactly needs to be done. These may be recommendations on the size of bets and deposits, restrictions on advertising, and much more.
Today, the current market trend is the tightening of legislation in the sphere of regulation. Europe has become the leader in this direction, introducing new restrictions every year to protect minors and socially vulnerable persons.
Top offshore zones (Malta, Curacao, and the Isle of Man) are also far behind their European colleagues. They oblige businessmen to check whether their clients are adults, inform them about the risks of ludomania, and introduce limits on bids.
Let us consider the most popular reasonable gambling measures:
Age Limit
In most countries, players must be 21 years old. However, some states have allowed wagering since 18. These are mainly offshore zones and countries in Southeast Asia and Latin America.
Georgia is the only region where the entry threshold is 25 years. So far, this is the highest rate in the world.
Verification of the age of customers is part of a larger KYC (Know Your Customer) procedure.
Authentication takes place in several stages:
- registration data entry;
- login confirmation using a secure password or PIN code;
- provision of an identity document (ID card, passport, or residence permit).
Most countries provide another step. Gamblers need to take a selfie with their passport. In some jurisdictions (such as the United Kingdom), paid utility bills or tax returns can be used as supporting documents.
Self-Exclusion
It is a long-term (for about 6 months) ban on visiting a casino initiated by a client. This practice was first introduced in the province of Manitoba (Canada) in 1989. Today, the mechanism is present in most states.
Inclusion in the list of such users can be valid only on a specific platform or all iGaming resources licensed in the selected region. The first option was used in Malta until 2019, and the second is actively used in Europe (Germany, the UK, France, etc.).
Self-Restriction and Limits Setting
Players have the right not only to temporarily exclude themselves but also impose restraints on:
- the size of bets and deposits for a selected period (day, week, or month);
- the amount of time spent in an online or land-based casino;
- bids in selected entertainment (for example, in slots with jackpots or products with high volatility).
Regulators in many jurisdictions oblige entrepreneurs to implement the “time-out” option. The mechanism works in a similar way to self-exclusion.
In the first case, the temporary ban is from 12 hours to 6 months, and in the second, it is at least 6 months. Similar practices are used in Sweden, Denmark, Germany, the Netherlands, and other countries.
Information on the Risks of Developing Ludomania
Project owners must provide players with any data on potential threats to health. This is the loss of money, emotional and mental instability, the appearance of dependence on the placement of bets, and many others.
A mandatory requirement is to post the contacts of special crisis centres on the main page of the website and provide assistance in the fight against the disease.
It is also considered a good form to support non-profit and charitable organisations. They conduct various information campaigns, help people suffering from ludomania, and finance medical institutions.
A striking example of such a foundation is the British GamCare company. Its patrons are William Hill, 888 Holdings, Aristocrat, Playson, and other well-known operators.
Responsible Advertising
The main requirement for brands is to talk honestly and truthfully about entertainment for real funds and its negative consequences and not mislead players.
Marketing activities cannot result in the following:
- distortion in the odds and chances of winning;
- promises of quick enrichment;
- demonstration of betting as the only way to earn money.
Today, there is a trend for tightening advertising in the casino and sportsbook industry:
- Belgium. The local regulator is introducing restrictions in 3 phases. Thus, in 2023, the government banned promotion in the media, on television and radio, as well as on social networks. The next changes are planned for 2025 and 2028. Entrepreneurs will not be allowed to place ads at stadiums or sponsor sports teams.
- The Netherlands. The authorities allow advertising of online entertainment, including the publication of banners and informational materials on Internet pages or sending them by email. They must be targeted at people not previously included in the self-exclusion or self-restriction registers.
- France. One of the latest changes is a ban on influencers' advertising of gambling. Casino brands must have technical means to prevent minors from getting access to advertising campaigns.
- Australia. In 2023, the legislative bodies introduced restrictions on bonuses for new customers, providing them with start-up credits and vouchers. The government also plans to ban this kind of ads on television (from 6 a.m. to 10 p.m.) and bookmaker’s offices’ sponsorship.
Payment Policy
Among the key requirements for operators, we can name:
- full information about the deposition and withdrawal of funds;
- a ban on the acceptance of bets from credit cards;
- displaying the game tokens as real money.
All bids in land-based or online casinos must be accepted in the national currency of the country that has issued the permit. Therefore, in all spin modes (except for the demo version), it is forbidden to use chips, points, and other conventional units, so as not to mislead clients.
Employee Training
Enterprises are required to teach their staff the importance of following responsible gaming principles. These are seminars, conferences, and other activities where employees learn to identify and interact with problem customers.
In some jurisdictions (for example, in the USA), the regulator requires operators to adopt such a policy.
Why Responsible Gaming Rules are So Important
Let us consider the main advantages of implementing these practices:
- Compliance with industry standards. Age verification, info about the risks of ludomania, and the creation of self-exclusion registers are mandatory conditions for every legal brand. Without following them, entrepreneurs can lose their licences and suffer huge losses in the form of fines.
- Attraction and retention of the audience. If 5 or 7 years ago it was possible to attract high-quality Internet traffic thanks to aggressive advertising, today this method no longer works. Solvent customers pay attention to many factors, including a commitment to sensible gambling principles.
- Positive image. Any mention of a law violation negatively impacts the reputation of the iGaming firm. Honest and transparent work, on the other hand, evokes positive emotions in clients and allows operators to build trusting relationships with players and B2B partners.
- Cost optimisation. Legal betting saves casinos from additional expenses in the short term. These include fines, court fees, penalties, compensation for punitive damages, and other outlays that fraudulent sites regularly face.
Responsible Gambling as Part of the Overall ESG Strategy
Running a reliable business is a broad concept. In addition to protecting players and using honest advertising, companies also follow other socially significant principles.
The concept of “Environmental, Social, and Corporate Governance” was first introduced at the UN Conference in 2005. Initially, it was associated with ecological standards but quickly spread to other areas of companies’ activities.
Today, ESG principles consist of 3 large blocks:
- Environmental initiatives. They are aimed at protecting the surroundings, reducing energy consumption, CO2 emissions, and using alternative energy sources.
- Social initiatives. These are investments in training and professional development of valuable personnel, labour protection, as well as reduction of the gender wage gap, charity, and support for inclusion and diversity.
- Management initiatives. These are responsible corporate governance, customer data protection, payment of “white” salary, anti-corruption, and publication of financial statements.
The social block is the most common in the casino and sportsbook industry, which is far ahead of other sectors of the economy where social principles are just beginning to be discussed.
Today, many entertainment firms are implementing a common ESG strategy. Operators support various environmental initiatives and follow uniform standards of corporate governance. This approach makes the business more transparent, responsible, and safe. It also attracts large investors.
All companies whose shares are traded on stock exchanges have developed their ESG policies:
- Playtech favours gender equality and finances many medical and educational centres.
- Kindred Group publishes reports and the percentage of transactions with problem clients.
- Aristocrat uses recycled materials to produce branded slot machines.
The Main Things about a Responsible Approach to Casino Games
It includes a set of measures aimed at minimising the harm from the placement of bets.
Key aspects that entrepreneurs need to take into account:
- Common rules include age verification, information about the risks of developing ludomania, and staff training. Businessmen must follow a reasonable payment policy and advertise their projects in a correct manner.
- Implementation of such principles allows brands to legally work in the chosen jurisdiction (accept bets from players and conclude profitable contracts with B2B partners). It also contributes to maintaining a good reputation and optimising costs.
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