Responsible Gambling Business: an Overview of the Practices

About the Concept

This is one of the most important elements of modern gambling, without which it is difficult to imagine the normal functioning of the entertainment industry.

The main attention is paid to the following basic components:

• players’ safety and their reasonable attitude to betting;
• honest and open advertising;
• comfortable working conditions for licensed operators;
• struggle against illegal business;
• market control by the state;
• protection from the development of ludomania.

These are only general principles since each jurisdiction independently determines the optimal rules for its market. They are based on gambling traditions, cultural characteristics, religion, and the general state of the economy.

For example, in Europe, the main focus is on honest casino advertising, and in the USA the attention is paid to the payment security and AML policy.

The concept is aimed at preventing a situation when people cease to be ordinary users but become victims of various circumstances (both in life and those that were artificially created by operators).

The lack of clear rules greatly complicates providers’ work, especially those who have proven themselves well in the international market. Without a clear strategy, the government will not be able to control the work of entrepreneurs and protect their clients.

Responsible Gambling Principles

The main actions that project owners should focus on:

Mandatory Authentication

It is based on KYC (Know-Your-Customer) verification. The essence of the method is the fast and reliable identification of users at the first and each subsequent entry into an online casino or land-based hall.

To perform the task, one or more of the following tools are used:

• a combination of a unique login and password;
• confirmation via a one-time SMS or voice call;
• biometric authentication.

The purpose of KYC verification is to make sure that there is a real player on the other side of the screen, not a bot or intruder. It is also important to check the age and geolocation of gamblers and see if they are on the list of temporarily or permanently excluded customers.

Protection of Socially Vulnerable Persons

This includes:

• underage visitors;
• low-income citizens;
• partially or completely incapacitated representatives of the population.

Each jurisdiction has its requirements for the age of users.

For placing bets in online casinos and bookmakers’ offices, the age limit is usually 18 years. Many European countries (for example, Ukraine or the United Kingdom) have an increased entry threshold of 21 years, and in Georgia the limit is 25 years.

Self-Exclusion

This is a temporary (for 24 hours, a day, a week, a month, a year) or permanent blocking of an account initiated by the gambler. Every client should have this opportunity, regardless of the jurisdiction in which the entertainment platform operates.

The practice was first used in Manitoba (Canada) in 1989. Since then, the method has been modified several times depending on the specific country and legislation.

Until 2019, the Maltese system was widespread in the European market: a person could temporarily block themselves only on a selected website while continuing to legally place bets on other digital resources.

In 2019, regulators in many EU countries changed the legislation and synchronised the work of self-exclusion registries. Today, if casino visitors exclude themselves on one portal, their profiles are automatically blocked on other iGaming platforms.

Setting Limits

This includes restrictions on:

• the amount of deposits;
• the cost and number of spins;
• breaks between sessions;
• time spent on the website or in a land-based hall;
• selected gambling products (for example, high-volatility slots or digital machines with jackpots).

Players can set limits independently. Such a function should be provided in any casino.

Regulators are also adding new restrictions, taking care of the safety of visitors and preventing gambling addiction. This practice is common in Germany, Great Britain, and France where the maximum rotation speed of reels in slots, the size of deposits per month, etc., are established at the legislative level.

The Time-Out function is another innovation in the European market. Visitors can limit their presence for a short period, from 12 hours to 6 months, after which they can continue or finish the game.

Educational Measures

This is the full information of the audience on responsible gambling, bets, and the risks of developing ludomania. An important nuance is the positioning of entertainment for money as a leisure option, not as a way of receiving funds and quickly increasing income.

Players should be aware of the following factors:

• statistics, wagering history, wins, and losses;
• rules of each game, limits, or restrictions;
• signs of gambling addiction;
• addresses and phone numbers of crisis centres.

In each country, there are several non-profit organisations that provide assistance to people with signs of ludomania. For example, customers from the UK can contact GamCare, BeGambleAware, Gamblers Anonymous, or other charitable foundations.

Responsible Advertising

Marketing efforts should not present casino solutions as a way of enriching and getting financial gain.

The following actions are also prohibited:

• distortion in ratios;
• motivation to play at higher limits;
• information about the harmlessness of bets;
• formation of the impression that there are no risks.

Leading European jurisdictions are currently planning to tighten advertising rules. For example, in France, Spain, Great Britain, and Germany, casino promotion is prohibited during the daytime on radio, TV, and in the media.

Many social networks (such as Meta or Instagram) block marketing activities dedicated to gambling.

Payment Policy

Among the main rules, we can name the following:

• demonstration of currency as real money;
• acceptance of bets and payment of prizes in the national means;
• setting limits on the replenishment of user accounts from credit cards;
• checking clients for child support debts and utility services;
• a clear explanation of the rules for depositing and withdrawing funds.

The list is not complete because each country has its requirements for the owners of entertainment sites.

Accrual of Bonuses

This is a limit on the number and size of rewards.

Thus, in Sweden, the maximum amount of incentives for one person should not exceed $11.8. This includes welcome gifts, reloads, and other types of bonuses. A similar practice exists in the United Kingdom, Denmark, and other countries.

Employee Training

These are various educational measures (meetings, conferences, and lectures) that will enable casino staff to perform the following actions:

• quickly and fully advise on responsible gambling practices;
• learn to recognise problematic user behaviour;
• be well-versed in the law;
• explain how self-exclusion programs work.

How Market Leaders Follow Responsible Gambling Principles

Following such rules is a mandatory requirement for obtaining a licence. Besides, it is an excellent image step that will strengthen the trust of clients and B2B partners of entertainment brands.

American Experience

One of the recent examples is the initiative of leading US bookmakers to create the Responsible Online Gaming Association (ROGA).

The organisation is designed to promote a reasonable approach to betting by:

• supporting independent research;
• promoting best practices;
• raising consumer awareness.

ROGA was founded by such leading US operators:

• BetMGM;
• Bet365;
• DraftKings;
• Fanatics Sportsbook;
• FanDuel;
• Hard Rock Interactive;
• Penn Entertainment.

The institution is headed by Jennifer Shatley, a member of the Nevada Council on Problem Gambling.

Its founders have already allocated $20 million to the organisation’s work in the first year.

The money will be spent on the following needs:

• academic research funding;
• development of an independent responsible gaming certification program for entrepreneurs;
• creation of a national database to facilitate the exchange of information and strengthen customer protection.

Initiatives from European Providers

Let us consider the experience of licensed operators:

• Playtech. The pioneering BetBuddy platform uses cutting-edge technologies that have been adapted for doing business in legal markets. The AI-powered solution uses behavioural monitoring and predictive risk modelling to detect signs of ludomania at an early stage.
• Kindred Group. The firm has launched the Journey to Zero initiative, which is aimed at generating 0% of revenue from harmful gambling by 2026. The vendor has also implemented tools based on artificial intelligence to detect problematic clients, support at-risk punters, and motivate people to develop safer habits.

The Main Things About the Right Approach Toward the Placement of Bets

Key aspects that operators need to take into account:

• The key principles include mandatory client verification, protection of socially vulnerable individuals, responsible advertising, and correct payment policies. Providers are required to train their employees, set limits, and inform people about the risks of developing ludomania.
• Playtech, Kindred Group, Bet365, DraftKings, and other market leaders are implementing their initiatives to prevent gambling addiction.

The 2WinPower studio supplies the following advanced solutions:

• turnkey online casinos;
• White Label platforms;
• betting and lottery software;
• payment systems;
• security software, and other products.