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

Successful EL/WLA seminar highlights value of responsibility

Hosted by EL Member Hrvaska Lutrija, this year’s successful seminar provided an excellent opportunity to hear from experts in RG and CSR, understand how other lotteries are implementing their progra......

Read more Synopsis: fr / es / de

EL publishes first-ever Annual Report

Looking back at a successful 2018, EL has presented its first ever Annual Report. The Annual Report provides an overview of activities from the past year, which would not have been achieved without the ongoing support of EL members. By continuing to provide best practices, content and enthusiasm, they pave the way for the work of the Association....

Read more Synopsis: fr / es / de

EL’s Responsible Gaming Certification continues to reap benefits for members

Peter Simoner, CEO of Loteria Kombetare received his Commitment certificate from EL President Hansjörg Höltkemeier Benefits of the Commitment Level Loteria Kombëtare in Albania was the first-eve......

Read more Synopsis: fr / es / de

European Standard on reporting in support of online gambling supervision notes considerable progress

On 12 and 13 September the CEN Working Group drafting the Standard held its two-day meeting in Brussels. The Standard is expected to be put for public comment and a vote by the end of November 2019....

Read more Synopsis: fr / es / de

European Commission Sport Unit Breakfast welcomes EL

At the fourth European Commission Sport Unit Breakfast EL was invited to present how lotteries are supporting and using sport. EL President Hansjörg Höltkemeier highlighted the importance of promoting the values of sport and the sustainable financing from national lotteries....

Read more Synopsis: fr / es / de

2020 EL Innovation Awards are now open for submission!

For EL lottery members only, the awards are another key initiative led by the EL Innovation Working Group (ELIG), which was set up to inspire, connect and engage the EL community in innovation. The aw......

Read more Synopsis: fr / es / de

EL organises Corporate University Modules for the second year running

The Induction Module, aimed at new entrants in the lottery world (up to 3 years experience), allowed for an extensive introduction to the sector and an insight into the many complex activities. Over t......

Read more Synopsis: fr / es / de

First-ever EL seminar on Instant Games

In 2017 the overall sales of Instant Games (or sometimes called Scratch Cards) in Europe was 25.9 billion EUR. This made Instant Games the second most important game in the portfolio of EL members. Th......

Read more Synopsis: fr / es / de

Upcoming EL Seminars & Events

8-10 October: EL/WLA Security & Integrity Seminar. 5-7 November: Innovation Seminar. 20-22 November: EL/WLA Sports Betting Seminar. 27-29 November: Legal and Regulatory Affairs....

Read more

New appointments for EL members

From left to right: Kerstin Kosanke, Managing Director, Lotto Brandenburg, Alexandru-Mircea Croitoru, General Manager, Loteria Romania, Bekir Yunus Uçar, General Director, Turkish National Lottery Administration & Gábor Czepek, CEO, Hungarian National Lottery...

Read more

IGT | Sustainability Strengthens the Social Contract

IGT recently released its 12th annual IGT Sustainability Report, “Ahead of the Game,” an externally audited document that validates IGT’s sustainability activities and data. The report highligh......

Read more Synopsis: fr / es / de

Scientific Games | Investing in growth with instant games

The global lottery industry faces new challenges from changing consumer and retail behaviours. Along with regulations and policy decisions, these changes place competitive and margin pressure on lotte......

Read more Synopsis: fr / es / de

INTRALOT | Trends and technologies that modernise the Lottery Industry

As it was stated during the 10th EL Congress in the CEO Panel discussion by Maria Stergiou, Group Chief Sales and Operations Officer of INTRALOT, all the above technological trends are creating sever......

Read more Synopsis: fr / es / de

Call for global action as Macolin Convention enters into force

The Convention entered into force thanks to its ratification by Italy, Moldova, Norway, Portugal, Switzerland and Ukraine. Another 32 countries, including Australia, have also signed it. Within 12 mon......

Read more Synopsis: fr / es / de

New Managing Director at Germany’s Lotto Brandenburg

Kerstin Kosanke, Managing Director of Land Brandenburg Lotto GmbH After finishing her law studies in Potsdam, Ms. Kosanke worked for 15 years as an independent lawyer with a focus on tax law and man......

Read more Synopsis: fr / es / de

Loteria Romania appoints new General Manager

Honoured in his new role Alexandru-Mircea Croitoru as General Manager, he will continue to work on the implementation of projects that will drive the development of the lottery. The Romanian Lottery is one of the oldest institutions in the country, established in 1906 in order to improve the health system, especially in rural areas....

Read more Synopsis: fr / es / de

Interview with Gábor Czepek, new CEO of the Hungarian National Lottery

Gábor Czepek, CEO, Hungarian National Lottery Szerencsejáték Zrt. is one of Hungary’s largest, dynamically developing state-owned enterprises: What were the most pressing tasks in this initial......

Read more Synopsis: fr / es / de

Introduction to new General Director at the Turkish National Lottery Administration

Following a career in journalism, Bekir Yunus Uçar spent over 20 years in public service. He worked in several roles at Türk Telekom before joining the Turkish National Lottery Administration. He was appointed General Director by the Minister of Treasury and Finance....

Read more Synopsis: fr / es / de