Climate Responsibility as a Part of Online Gambling Strategy

Ecology Issues in Gaming

In the modern world, climate responsibility is becoming an integral part of the policies that global casino brands follow.

Providers strive to:

• minimise the negative impact on the ecology;
• make a positive contribution to society;
• scale their projects ethically and over the long term.

Climate responsibility is also one of the main components of a broader social and corporate governance strategy. Today, many large entertainment companies are implementing it, showing their responsible business approach.

Excessive Power Consumption

Like other forms of digital solutions, iGaming products require significant computing capacity. This leads to increased energy use and huge carbon emissions.

For example, the online casino sector is responsible for 3.7% of global pollution by greenhouse gases. The aviation industry produces 4.8% of CO2, which is only slightly more than the virtual betting sector.

Land-based entertainment centres also negatively impact the ecology. Many of them are combined with large hotel complexes. Such gambling facilities are responsible for CO2 emissions, household waste, water contamination, and deforestation.

Eco-Friendly Initiatives

To lessen the carbon footprint and resources consumed by operators, the following actions were taken:

1. Switch to green hosting. Entrepreneurs begin to use renewable energy, receiving uninterrupted power for their servers and information centres.
2. Carbon offsetting. These are investments in reforestation projects, solar energy, and ecological construction.
3. Optimisation of data transmission and IT infrastructures. The main goal of modernisation is to reduce consumption and switch to alternative power sources. To do this, companies use energy-efficient technologies, high-quality cooling systems, and other innovations.
4. Decrease in the number of offline activities. The transition to electronic documents and digital communications reduces the need for paper, which contributes to forest preservation and the waste reduction.

Support for Long-Term Ecological Balance in Gaming

This is a broader approach that contains 3 key blocks:

1. Environmental viability. The main focus is on minimising the negative impact on nature and using ecological solutions in offices, servers, and logistics.
2. Prosocial behaviour. This includes protecting players, fighting against ludomania, setting loss limits, and other restrictions that are considered to prevent gambling addiction. Another area is supporting social projects, such as charity, education, and sports.
3. Ethical business conduct. It is important for providers to use honest advertising without cheating, manipulations, or prohibited targeting. Besides, it is necessary to organise transparent work with partners, ensure fast and secure settlements with counterparties, as well as install anti-fraud systems.

Benefits of Implementing the Practices

Climate responsibility in the iGaming strategy becomes not only its ethical obligation but also a competitive factor.

Brands that implement ESG standards receive advantages in the form of a good reputation, investment attraction, and reduction of risks. All this contributes to their long-term growth and success.

Let us consider why many firms are currently paying attention to climate and social responsibility.

Improvement of the Casino’s Image

Enterprises that implement green initiatives inspire more confidence in customers and B2B partners.

A UN study showed that:

• 68% of respondents want to deal with ecological problems more actively;
• 87% of providers are ready to support actions aimed at protecting the environment.

Today, the green agenda is currently on everyone's lips in many countries and sectors of the economy. We are proud to say that gambling is no exception. Casino brands are eager to join the global ESG policy and show their business approach to the world.

The incorporation of such principles also increases the trust in the entertainment firm.

Modern consumers choose enterprises that implement ESG initiatives. Vendors that care about the environment are always perceived as more progressive and honest.

Strengthening the Market Positions

With the severe competition in the gambling niche, a sustainable approach is becoming a way to stand out from the competition. This is especially important for local entertainment firms that provide services in Europe and the UK. Here, ESG standards have a strong influence on consumer choice.

The strategy helps build a stable business model that can be quickly adapted to:

• legislation;
• markets;
• customer preferences.

Attraction of Investments

Environmental protection initiatives can raise the revenues of casinos.

• Economists Stephen Myers and Robert Montgomery claim that the income of iGaming enterprises can grow by 2% or $5.44 billion per year.
• According to McKinsey, firms with high ESG ratings have a 10% bigger capital value and a 14% higher operating margin compared to competitors who have another approach.

Funds and large investors are more often giving preference to projects that adhere to sustainable development principles. This allows providers to access green financing and increase the cost of their capital.

Risk Reduction

Responsible policies perform the following tasks:

• make businesses more resilient to force majeure, natural disasters, and technical failures;
• reduce reliance on energy and resource consumption.

Companies using renewable sources save money in the face of a crisis, recession, or economic stagnation. Such enterprises are less susceptible to the rise in prices for oil, gas, and electricity.

Providers that do not monitor the ecological and social background may find themselves under pressure from the media, regulators, or activists. Sustainable practices, on the contrary, reduce the likelihood of high-profile scandals and fines.

Compliance with the Laws

The government increasingly requires gambling brands to follow ESG standards.

A striking example is the Malta Gaming Authority (MGA). The organisation has already initiated a project to support ESG. Today, it motivates licensees in every possible way to issue reports on their progress.

A similar practice exists in:

• Great Britain;
• Sweden;
• Romania;
• Denmark, and other countries.

Firms that show their concern for the environment have a better chance of expanding their geography and keeping the obtained licence.

Reduction of Operating Expenses

Energy-efficient data centres, curtailing the turnover of paper documents, using cloud solutions, and other initiatives help providers optimise their budgets. Entrepreneurs reduce electricity bills, rent, etc.

According to BetterWordsCasinos, switching to cloud servers and abandoning local hosting can cut energy consumption by 40% in the case of the entertainment site’s stable operation.

Increased Loyalty of the Staff

Specialists want to work for brands that share their values. This is especially important for attracting young and talented personnel in the fields of programming, testing, marketing, and analytics.

According to a Deloitte study, 75% of millennial employees prefer to be hired by companies that support the principles of sustainable development.

Promotion of iGaming Sites Through Green Initiatives

Climate responsibility is becoming part of the overall advertising strategy.

Promotional campaigns with the slogans “We work on solar energy” or “1% of income for reforestation” can help attract a new audience.

How Market Leaders Implement Eco-Friendly Practices

Let us consider the experience of well-known entertainment firms.

Betsson AB

The Swedish operator demonstrates its commitment to sustainable development through investments in CO2 offset programs.

The company supports projects aimed at reducing greenhouse gas emissions.

The initiatives are related to:

• reforestation;
• development of renewable energy sources;
• ensuring climate-neutral operations.

Kindred Group

The brand was one of the first to implement eco-standards:

• In 2021, the holding joined the Science Based Targets (SBTi) initiative, seeking to reduce the amount of carbon in accordance with the purposes of the Paris Agreement.
• In 2022, the firm purchased 61.3% of energy from alternative sources.
• By 2030, the provider plans to switch to renewables.

Flutter Entertainment

One of the largest online gambling operators aims to achieve zero carbon emissions by 2035. Its goals are approved by SBTi.

In 2023, the enterprise’s use of sustainable energy reached 100%, and waste of Scope 2 decreased by 60%.

Greentube

The supplier applies measures to reduce carbon emissions in its daily work, supports non-profit initiatives, and guarantees adherence to regulatory requirements. All this has a positive effect on the company's image and makes it a respected market participant.

The Main Things about Climate Responsibility in Gambling

The adherence to ESG standards is an important factor in the transformation of the casino sphere.

Key aspects that entrepreneurs should take into account:

• Brands that invest in green technologies and social policies receive real benefits. These include increased profits, reduced operating expenses, strengthened image, easier expansion into new markets, and minimisation of risks.
• Among the leading firms that follow ESG initiatives, we can highlight Betsson AB, Kindred Group, Flutter Entertainment, Greentube, and other licensed providers.

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