ESG as a Brand Asset: Improve the Casino’s Reputation

You will learn what benefits operators receive from adopting ESG practices and how market leaders promote a trend of sustainable business development.

About the Concept

The term originated in the investment sector in the late 1990s. At that time, large funds began to evaluate enterprises not only by financial indicators, but also by how they affect the surroundings and society, as well as whether they are managed transparently or not.

ESG ratings began to be assigned to capital pitches. The higher the company’s rank, the greater its chances of receiving a loan or attracting investment.

Over time, the principle has become an important component of the strategy for firms in various industries, including the promising casino niche.

Types of ESG Projects in Gambling

Let us consider what initiatives are being implemented by modern entertainment platforms.

Environmental Projects

The digital industry has an ecological footprint. It is associated with server capacities, data centres, office infrastructure, and Internet traffic, the volume of which is growing every year.

In the 2010s, operators began to actively seek methods to compensate for or minimise their environmental impact. The purpose of such innovations was to demonstrate a responsible approach to business management, as well as to reduce basic costs (electricity, the elimination of waste).

The main areas include:

1. Carbon footprint offset. Companies calculate their CO2 emissions and purchase carbon credits. In this way, they finance projects (public and private) to restore forests, install solar panels, etc.
2. Transfer to “green” hosting. This is the use of servers running on renewable energy (solar or wind). This approach is most common in the European market due to the widespread use of alternative sources in the region and the huge support for such initiatives from the EU.
3. Eco-project funding. These are donations to global environmental organisations, such as WWF, Ocean Cleanup, and ClimatePartner. Some providers donate a fixed percentage of winnings, while others make contributions to charitable foundations based on the results of the reporting year.
4. NFT campaigns with an ecological message. Crypto casinos increasingly release NFT collections, part of the proceeds from the sale of which is directed to planting trees or cleaning the oceans. Such campaigns enhance engagement and emphasise adherence to sustainable values.

Social Initiatives

This is one of the most sensitive and significant aspects of the gambling sector. The main focus of these projects is on protecting players, ensuring fairness, and contributing to the public good.

Key ESG areas:

1. Responsible gaming. The focus is on implementing special control tools, setting limits on time or amount of money, self-exclusion, and account blocking. Entrepreneurs can implement RG measures independently or in partnership with industry organisations (for example, GamCare or Gambling Therapy).
2. Social investment. Providers are increasingly sponsoring schools, sports programs, and clinics, especially in developing countries in Asia, Africa, or Latin America. Many operators also provide scholarships or fund philanthropic projects aimed at supporting local talents.
3. Inclusion and diversity. ESG programs promote equal employment, protect LGBT people and women, create safe jobs, etc.
4. Humanitarian aid. This is the response of companies to global crises: earthquakes, pandemics, wars, and other cataclysms.

Most social initiatives (for example, those related to responsible gambling) are mandatory for casino owners. They are regulated at the state level and reflected in legal acts.

Governance Policy

Important corporate administration measures include:

1. KYC/AML. The implementation of Know Your Customer and anti-money laundering systems improves the security of entertainment portals and strengthens trust among users and regulators.
2. Validation and compliance with standards. This includes testing random number generators and the fairness of games (in eCOGRA, iTech Labs, or other laboratories), the implementation of GDPR policies on personal data security, and ISO 27001 certification.
3. Transparency with clients. Entrepreneurs publish clear terms for receiving bonuses, open statistics on winnings or RTP percentage, as well as the operating procedure of game algorithms. The absence of hidden fees and support for fast transfers are also elements of well-thought-out governance.
4. Open reporting. Today, most major providers post their annual financial reports in the public domain.

Modern crypto casinos also use decentralised autonomous organisations, within which users vote for key decisions. This includes the choice of vendors, bonus policy, implementation of functions, and other initiatives. Thus, DAOs are becoming a new form of governance, which is increasingly applied in blockchain projects.

Benefits of Implementing ESG

Let us consider why modern operators are launching ecological, social, and corporate initiatives.

Enhancing the Reputation

Today, consumers and partners of iGaming firms are increasingly focused on values, so ESG is becoming the foundation of trust:

• players place bets on digital portals that demonstrate social responsibility;
• affiliates are more willing to work with entrepreneurs who conduct business transparently;
• casino owners who actively promote ESG more often are the focus of professional awards, publications, and reviews.

Reduction of Regulatory Risks

Gambling commissions monitor how operators comply with social and ethical standards.

Detailed documentation and timely reporting can protect brands from sanctions and large fines. Serious ESG violations, on the contrary, often lead to the revocation of licences.

In many EU countries (the Netherlands, Sweden, etc.), the implementation of sustainable development policies has already become a mandatory condition for granting or renewing permits.

Access to Advanced Markets

Compliance culture in the USA, Canada, Great Britain, and other jurisdictions demands that operators ensure not only legal transparency, but also social responsibility. Support for ESG initiatives becomes a ticket to these regions.

The presence of such projects in the providers’ portfolio helps them conclude profitable B2B and B2C partnership agreements, gaining a competitive advantage over offshore or “grey” platforms.

Formation of Capital

In 2025, ESG becomes a key filter for large investors and institutional funds:

• venture and private equity organisations already include such criteria in their due diligence policies;
• enterprises with open ESG reporting and a transparent management structure have a better chance of concluding M&A and IPO deals.

According to Morningstar, since 2021, more than 40% of all investment flows into the European stock market have gone to enterprises with a high ESG rating. This statement is true for many sectors of the EU economy, including the legal gambling sector.

Growing Audience Engagement

Millennials and Gen Z are forming a new generation of players. Such users are increasingly selecting online platforms that match their principles and personal beliefs. Sustainable development and social missions increase the loyalty of clients, making them more involved and devoted to iGaming firms.

How Top Vendors Implement ESG

Let us consider the experience of major companies in the field of ecological, social, and corporate governance.

Entain

The enterprise is a leader in the implementation of the following initiatives:

1. ARC program. The Advanced Responsibility & Care service was launched in 2021 and is available in 27 jurisdictions. The solution contains a wide range of self-monitoring tools to prevent ludomania. In 2023, 8.7 million interventions were carried out, and 742 thousand customers were reached.
2. Charity. The brand annually redirects 1% of GGR to research, education, and addiction treatment. In 2023, the amount of donations was £18.7 million.
3. Environmental initiatives. 100% of the energy consumed by the provider in the UK and Ireland comes from renewable sources. The company plans to completely eliminate CO2 emissions in all its branches by 2035.

Entain's activities in the field of sustainable development have been recognised by FTSE4Good, DJSI, and other independent organisations. The firm has been assigned an AA rating by MSCI Inc. American fund.

Kindred Group

The provider actively promotes ESG principles, including through its PS-EDS social program. It covers a significant number of clients and offers effective mechanisms for preventing ludomania.

The brand’s environmental initiatives are related to the reduction of CO2 emissions and household waste, as well as the transition to alternative energy sources. Besides, the vendor is a permanent member of SBTi.

Flutter Entertainment

The activities of entrepreneurs are related to the ESG training of staff and improving eco-efficiency.

The company has achieved tremendous results in reducing its environmental footprint:

• reduced power usage by 13%, using energy-saving practices and modern equipment;
• transferred its operations to 100% renewable sources;
• declined paper use by 15%, switching to alternative options and electronic document management;
• saved 7 tons of CO2 per year thanks to emissions reduction and recycling programs.

In August 2023, Flutter Entertainment received an 8.9 score from Morningstar Sustainalytics. The brand was ranked 1st in the Casinos & Gaming sector and entered the top 150 global enterprises in terms of risk ratings.

The Main Things about ESG in the Casino Niche

Key aspects that should be taken into account:

• The benefits of implementing ESG standards include improved reputation, reduced regulatory risks, and simplified entry into developed markets. Such initiatives help attract capital and increase audience engagement.
• Among the leaders in the implementation of the described policies are Entain, Kindred Group, Flutter Entertainment, and other famous enterprises.

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