The cost of RG negligence

A genuine embrace of CSR can transform public perception of gaming and Lottery.

Attempts to improve the image of gambling are being washed away in a tide of bad press – and lotteries are in danger of being swept along too. Regulators, along with the public, are increasing their demands on operators to behave ethically.

Companies that are brave enough to make Corporate Social Responsibility a central pillar of their growth strategy could make major strides towards changing this negative perception and finding new ways to grow.

The UK Gambling Commission’s annual report shows public perception of gambling at its most negative in almost a decade. Lotteries may not be responsible for this shift but they could well be affected if they do not take preemptive action. This all stems from an underlying perception of gambling as a way for people to lose money. From the long odds on lotteries to the old cliché that “the house always wins,” there is a notion that people are more likely to lose than gain from playing.

Gambling companies are often keen to make a point of explaining in depth how they comply with regulation in various markets, but ultimately this is a way of asking for praise for simply meeting the minimum requirements of the regulatory model under which they comply. Factor in some highly questionable advertising across the board and an insistence on barely-clothed models at industry shows and it is clear that the industry has an image problem. This could make the sector more vulnerable to overly-strict regulation, which could have a knock-on effect of limiting lotteries’ ability to raise money for worthwhile causes. The more negative the public perception of a service or product, the more scope governments have to limit the supply.

Gambling companies’ standard defense is that they do not offer dangerous products, but a form of entertainment. I do not, however, tend to see that notion reflected in how many of these businesses function. Too often it feels there is a desire to comply with what is legal (if so), rather than to do what is ethical.

Lotteries, of course, are different from private operators. They are businesses created to raise money for charitable, social, cultural and civic projects and this puts them at a clear advantage, one on which they can build a responsible and sustainable business that serves society. This is where corporate social responsibility (CSR) comes in.

There are huge opportunities for lotteries to embrace CSR. A serious embrace of CSR is not, however, about simply starting a new Responsible Gambling initiative, putting out press releases on the projects supported by Lottery, or ensuring that advertising does not offend. It is looking across an entire business at how decisions are made, to ultimately ensure that everything a company does has a wider benefit to society.  When adopted across an entire business, CSR can improve public perception of a company, address jackpot fatigue by providing another reason to play, promote innovation by encouraging employees to create new solutions for issues such as responsible gambling, and ultimately ensure a company’s long-term future.

Of course, there is always resistance to change. Companies have protested that this concept is particularly hard to define, something that can only work in certain markets, or under certain circumstances, or they point to charitable work they already do.

In this industry, CSR should be seen as not what a company does with the money it earns, but how it earns this money. If a company uses its advertising to promote gaming responsibly, finding unique and unusual ways to engage with their consumers, they will be able to improve their public image. This in turn can help tackle matters such as Responsible Gaming – if players are informed in a creative way, the message that playing should only be an entertainment and never an investment becomes a part of the way one buys the product. Additionally, although people play to win, when they lose, they will know that at least they contributed to doing good for society.

Creativity in the gambling industry is too often seen as grabbing customers’ attention with eye-catching, controversial, or simply repetitive advertising. What if people look beyond these tried, tested and tired ways of connecting to customers and think about how the industry can use its considerable resources to grow business by doing good?

A key example of the concept behind growing a business by doing good comes from Sol de Janeiro, a company that sells various sun creams. The company launched a program to train tattoo artists in Brazil how to spot tell-tale blemishes and discoloured marks on customers’ skin that may indicate a person has skin cancer. Considering the high prevalence of skin cancer in such a sunny climate, it could be argued that the market for sun cream can be expanded by educating people on the importance of protection. By training the tattoo artists, Sol de Janeiro taps into a huge network that it can use to raise awareness of risks related to skin cancer, and indirectly, of their products to their key audience: young, influential people – often those that have a wide presence on key communications channels.

Lotteries could take inspiration from the sun cream company in this case. National lotteries operate huge retail networks and often have expansive online presences. How could lotteries leverage the power of these networks to grow by doing good, rather than to grow and to do good?

Differentiation is increasingly important in an industry where national lotteries often feel they are being forced to compete against private operators that may cannibalise their revenue. But lottery operators have an in-built advantage, in that their revenue is used for charitable, social or civic causes. Embracing CSR can help these companies build on this key differentiator. These concepts may be new to many companies but that’s why Silverfish CSR has moved into this sector – there is a huge opportunity to do good, and we are here to help.

CSR + RG = good for business? Take the test!

For more information: info@silverfish.fr;   www.digitalRG.com

For video examples: http://www.silverfish.fr/social-responsibility; 

Article written by Laura Da Silva Gomes, Silverfish CSR

Related Articles

View all

Synopsis

Français

Le coût de la négligence du GR

Un véritable engagement en faveur de la RSE peut changer la perception qu’a le public de la loterie et de l’industrie du jeu.

Les loteries sont créées pour générer de l’argent pour des projets caritatifs, sociaux, culturels et civiques, ce qui leur confère un avantage certain sur lequel elles peuvent développer un modèle commercial responsable et durable qui sert la société. C’est là que la RSE intervient.

Pour les opérateurs de loteries, les opportunités d’adopter la RSE sont immenses. Lorsqu’elle est adoptée dans toute l’entreprise, la RSE peut améliorer la perception que le public en aura, répondre à la lassitude des joueurs en proposant une autre raison de jouer, promouvoir l’innovation en encourageant les employés à créer des nouvelles solutions sur des questions comme le jeu responsable, et, en fin de compte, assurer l’avenir à long terme de l’entreprise.

La RSE ne doit pas être perçue comme ce que fait une entreprise avec l’argent qu’elle gagne, mais plutôt comment elle gagne cet argent.

Español

El precio de la negligencia en el juego responsable

Adoptar de verdad la CSR puede transformar la percepción pública del juego y la lotería.

Las loterías se crean para recaudar dinero para proyectos caritativos, sociales, culturales y cívicos, lo que las coloca en una posición claramente ventajosa desde la que pueden crear un negocio responsable y sostenible al servicio de la sociedad. Aquí es donde entra en juego la responsabilidad social corporativa (CSR).

Hay grandes oportunidades para que las loterías adopten la CSR. Cuando se adopta la CSR a todos los niveles en una empresa, puede mejorar la opinión pública respecto a la misma, mitigar el cansancio que se siente tras haber ganado ofreciendo otra razón para jugar, fomentar la innovación animando a los empleados a diseñar nuevas soluciones para problemas tales como el juego responsable y, en definitiva, asegurar el futuro a largo plazo de la empresa.

La CSR no debería interpretarse en términos de “qué hace una empresa con el dinero que gana”, sino de “cómo gana ese dinero”.

Deutsch

So viel kostet Nachlässigkeit beim RG

Effektiv umgesetzte CSR kann die öffentliche Wahrnehmung von Glücksspiel und Lotterien nachhaltig zum Positiven beeinflussen –

Lotterien sollen Gelder für gemeinnützige, soziale, kulturelle und Bürgerprojekte sammeln. Dies bringt sie in eine einzigartige Position, um ein verantwortliches und nachhaltiges Geschäftsmodell aufzubauen, das im Dienste der Gesellschaft steht. Hier kommt das Thema Corporate Social Responsibility (CSR) ins Spiel.

Lotterien können nur gewinnen, wenn sie sich für das CSR öffnen. Wenn es konsequent im ganzen Unternehmen angewendet wird, kann CSR das Image des Unternehmens verbessern, Spielmüdigkeit durch die soziale Komponente als zusätzlichen Motivator entgegenwirken, Innovation fördern, weil es Mitarbeiter dazu anhält, neue Lösungen für die Problemstellungen des verantwortlichen Glücksspiels zu finden, und den langfristigen Unternehmenserfolg sichern.

Bei CSR geht es nicht darum, was ein Unternehmen mit seinen Gewinnen anstellt, sondern wie es sein Geld verdient.

Other Articles

View all

IGT: Launching a New Category of Lottery Play ─ NOW&LATER™

Black Pearl is the first game to be launched in IGT’s new NOW&LATER™ hybrid lottery-game category.   What makes the NOW&LATER™ category unique? Explains Francesco Parola, Vic......

Read more Synopsis: fr / es / de

Two New CEOs Appointed Among EL Members

Edvard Kolar, Ph.D., President of the Management Board of Športna Loterija Ms. Katica Nikolovska-Prnarkova, General Manager at The National Lottery of Macedonia   &nbs......

Read more Synopsis: fr / es / de

Ovidiu Portariuc: “Implementing A New System Which Can Allow The Diversification Of Lottery Games And Also On-Line Games, Represent The Main Objectives Of The Development Strategy Of Loteria Romana”

Ovidiu Portariuc, General Director of Loteria Romana Ovidiu Portariuc comments on his nomination: "For me, it is an honour and a challenge to lead one of the oldest Romanian institutions, the Romani......

Read more Synopsis: fr / es / de

The European Year of Cultural Heritage 2018

    European Years By designating a theme to a calendar year, the EU attempts to raise awareness of a particular theme by encouraging debate and a change of attitudes......

Read more Synopsis: fr / es / de

Corporate Responsibility – csR You ready ? – EL/WLA CSR Responsible Gaming Seminar, Madrid

The 2017 EL/WLA CSR-Responsible Gaming seminar took place in Madrid on September 20-22, upon the invitation of, and hosted by, ONCE. It gathered 110 participants from more than 30 countries who were i......

Read more Synopsis: fr / es / de

Implementing The New EL Strategy

EL promotes (and successfully defends) the model of Lotteries for the benefit of society, offers a platform to share best-practices and delivers various services to its Members. The new Strategy se......

Read more Synopsis: fr / es / de

The Possible Future CEN Standard On Reporting To Regulators For Online Gambling

In  2012, the European Commission announced a desire to develop a standard for online gambling. In the past two years the plans have became more concrete with the drafting of a potential request to......

Read more Synopsis: fr / es / de

EL Legal & Regulatory Affairs Seminar 2017, Belgian Senate

The 2017 edition of the EL Legal & Regulatory Affairs Seminar held on November 30th and  December 1st was hosted by the Belgian National Lottery at the majestic premises of the Belgian senate in......

Read more Synopsis: fr / es / de

EL Innovation Methodology Workshop, 13-14 November 2017, London UK

The workshop was facilitated by Decoded, one of the world’s leading digital and innovation education companies. During the first day, attendees tackled the question of ’What can you do with techno......

Read more Synopsis: fr / es / de

FDJ and the Paris Olympic bid – A successful partnership initiative

After a 100-year wait, the Games will be back in Paris. The French capital was confirmed as host city for the 2024 Olympic and Paralympic Games by the International Olympic Committee during its meetin......

Read more Synopsis: fr / es / de

EL Sponsors Participation in the Belfius Brussels Half Marathon – EL Running Team

  The European Week of Sport is an important initiative launched in 2015 by Tibor Navracsics, the European Commissioner for Education, Culture, Youth and Sport, which seeks to inspire Europe......

Read more Synopsis: fr / es / de

EL/WLA Security & Integrity Seminar – An Umbrella For Success: Organizational Resilience!

⇓ SCROLL DOWN FOR THE PICTURE GALLERY More than 80 delegates from more than 30 Jurisdictions attended the 2017 Seminar which was graciously hosted by Norsk Tipping in Oslo from October 24 to 26, 20......

Read more Synopsis: fr / es / de

Novomatic: The Potential of Trivia Apps is Anything but Trivial

Business Insider recently reported on a popular new app that launched this past August. The app, described as “a trivia-styled, fast-paced mashup of ‘Who Wants to Be a Millionaire’ and ‘Jeop......

Read more Synopsis: fr / es / de

Upcoming EL Seminars & Events

EL and its Members are producing many educational programs designed to tackle real-world issues in a meaningful way. Join us for an intensive session that will empower you to bring home lessons to app......

Read more

Intralot: GDPR and the 4th industrial revolution

Christos K. DIMITRIADIS PhD, CISA, CISM, CRISC Group Director of Information Security, INTRALOT GDPR is about protecting personal data but fundamentally requires us to understand the types of data w......

Read more Synopsis: fr / es / de

Scientific Games: All Systems Go – An Advanced New Gaming System Powers Danske Spil

  A nod to the innovative days of early space exploration, the phrase “all systems go” originated in the 1960s heyday of space flight. Decades later, in 2017 these words resonate the lev......

Read more Synopsis: fr / es / de