Snapshot Summary:
This benchmark insight examines the scale and investment in responsible gambling (RG) functions across key gambling markets, focusing on team sizes, spending levels, and structural approaches. Drawing on verified data from the United States and the United Kingdom, it highlights significant variations in RG resource allocation and underscores the strategic implications for operators aiming to align with evolving regulatory expectations and public scrutiny.
Key Findings:
- United States: Substantial Growth in RG Investment
In 2023, the American gaming industry allocated $472 million to responsible gambling initiatives, marking a 72% increase from 2017. This surge reflects heightened awareness and commitment to RG practices, particularly in the wake of expanding legalised gambling across various states. - United Kingdom: Record Contributions Amidst Regulatory Evolution
Between 2020 and March 2024, major UK gambling operators contributed £122.5 million towards combating problem gambling, surpassing their initial pledge of £100 million. Additionally, £10 million was directed towards youth-focused harm prevention programs, reaching over two million individuals aged 11 to 19. - Divergent Regulatory Landscapes Influence RG Structures
The UK’s centralised regulatory framework mandates specific RG practices, leading to more uniform implementation across operators. In contrast, the U.S. operates under a fragmented, state-by-state regulatory system, resulting in varied RG approaches and resource allocations among operators. - Lack of Standardised Metrics for RG Team Sizes
There is a notable absence of standardised benchmarks for RG team sizes across jurisdictions. This gap makes it challenging to assess the adequacy of RG staffing levels relative to operator size, market presence, or revenue.
What This Means for Leadership:
The disparities in RG investment and structural approaches across jurisdictions underscore the necessity for operators to critically evaluate their RG strategies. In markets like the U.S., where RG practices are less standardised, operators have the opportunity and responsibility to proactively establish robust RG frameworks that may exceed local regulatory requirements. This proactive stance can serve as a differentiator and mitigate potential reputational risks.
In the UK, despite significant financial contributions to RG initiatives, ongoing regulatory reviews suggest that merely meeting financial commitments may not suffice. Operators must ensure that their RG practices are not only compliant but also effective and responsive to emerging challenges, such as the rise of online gambling and its associated risks.
Internal Questions to Ask:
- How does our RG investment compare to industry benchmarks in our operating jurisdictions?
- Are our RG team structures and sizes adequate to address the specific risks associated with our product offerings and customer demographics?
- What mechanisms are in place to evaluate the effectiveness of our RG initiatives beyond financial contributions?
- How do we ensure consistency in RG practices across different markets, especially those with varying regulatory requirements?
- What strategies are we employing to stay ahead of potential regulatory changes related to responsible gambling?
Sources:
- American Gaming Association: Responsible gaming spending reached a new high in 2023.
- The Sun: BGC donate record £172.5m to tackle UK problem gambling.
- Gaming Intelligence: Exploring responsible gambling practices across continents.
