CHANNELIZATION AND RESPONSIBLE GAMING

IMAGE: SPENCER PLATT. GETTY IMAGES

Channelization and industry-led responsible gaming standards signpost the best routes forward for all jurisdictions. By: Damien Connelly

hannelization in mature

Conline European gaming markets can be higher than 90% – the UK is estimated to have the highest levels of channelization, with at least 95% of online gaming revenues estimated to be channelled into legally licensed operators.

Jurisdictions such as Finland have attempted to compete against the market but, as any economist will tell you, trying to go against any competitive market almost always ends in defeat – such defeat can even be evidenced in monopoly situations, such as the market conditions

Veikkaus currently operates under; especially so when we’re talking about online, which provides the situation of what economists define as an almost perfect, geographically borderless, market… which is impossible to compete against. In my opinion, trying to do that is as effective a strategy as standing in Pamplona and not running when they release the bulls… it’s a sure bet which of the ‘bull runners’ are going to be receiving medical attention!

The strengths of the open market are, for example, seeing a potential removal in Finland of the government’s sole license on gaming activities, which has seen the state-owned Veikkaus’ share of the digital gaming wallet decline to approximately 50%. In Sweden, the state-owned Svenska Spel moved to an open market position, and now sees about 90% channelization of national gaming revenues routing to Swedish-licensed, and therefore legal,

IMAGE: LCRIG.ORG.UK

IMAGE: .FREEPIK.COM

entities. Ditto in Denmark, where the channelization level went from the 30s to now being at least 90%. The Netherlands is also making progress on channelization after that jurisdiction recently legalised online sports betting and gaming.

If you want to direct patrons and monies to legally licensed operators in each jurisdiction, channel them. Do that effectively, and everybody wins, not least patrons because they will be the customers of operators who are following best practices with respect to responsible gaming.

The 12-Point Pledge

This has an integration with the American Gaming Association’s Responsible Gaming Education programs, ongoing across America since 1998 – although one could probably also draw comparisons to the ’12 Steps’, I guess. From the perspective of addiction, it is only relatively recently that gambling addiction was recognised as being similar to the major addictions that have been studied more widely and in greater depth.

A recent survey considered why patrons choose gambling sites that are or are not licensed. For licensed sites, the most important reasons were found to be safety, security and control. As to why patrons would chose to play on unlicensed sites, the most important reason was found to be bonus offers, as well as being able to receive better odds and winning opportunities. Importantly, such points are heavily dependent upon taxation levels, because if a jurisdiction has too high a level of online gaming tax, operators cannot provide competitive and attractive products for their target cohorts, meaning everyone then loses.

The largest online gaming operators across America have partnered to deliver the first industry-led responsible gaming standards. The announcement of the 12-Points coincided with September 2022’s designation as Responsible Gaming Education Month by the American Gaming Association – readers can discover more about that in an RG article in our sister publication, Casino Life.

The partnership on the 12-Point Pledge includes Bally’s Corporation, BetMGM, DraftKings, Entain, FanDuel, and MGM Resorts International. These operators endorse the following 12 principles for responsible online gaming:

1. We take active steps to prevent underage and excluded individuals from participating in any form of gaming within our products;

2. We help patrons make informed choices about their gaming. We provide easy to read information about how to play, provide responsible gaming tools including information on how to access and use such tools; and provide other related information, including information about a toll-free helpline, as well as resources for those who are seeking support related to their gaming;

3. We support the adoption and effective promotion of a unified nationwide responsible gaming tollfree helpline;

4. We abide by applicable standards of socially responsible advertising, including compliance with all applicable state and federal laws and standards, and we avoid using minors in marketing content. We only use actors and company representatives in advertising and social media relating to gaming who reasonably appear to be above the legal age to gamble;

5. We provide our customers with tools to play responsibly, including but not to limited to self-exclusion tools, financial and other account limits, as well as customer betting histories;

6. We abide by all self-exclusion rules and regulations, and provide resources to individuals who make the choice to self-exclude;

7. We encourage patrons to set a budget that they can afford, to

IMAGE: M. C. ESCHER

never play beyond their means, and to not view gaming as a means to financial success;

8. We encourage patrons to set time and financial limits on their gaming and stick to them, and not to chase losses;

9. We believe in a shared responsibility approach to addressing problem gaming and are committed to working with policy makers, academic experts and researchers, problem gaming treatment organizations, advocacy groups, and our partners – as well as with our customers – to promote responsible gaming and address problem gaming;

10. We support funding for evidencebased problem and responsible gaming research;

11. We provide all applicable employees with responsible gaming

IMAGE: STEPHEN DORMER IMAGE: ALAMY.COM

training upon hire and regularly thereafter, in order to embed responsible gaming culture in our businesses; and

12. We are committed to evaluating and continuously monitoring our respective responsible gaming programs and initiatives. For the signatories, the above 12 principles are derived from the following four core attributes:

1. We participate only in legal markets that provide consumer protections;

2. We strive to instil responsible gaming culture throughout our respective businesses;

3. All forms of online gaming should be a fun activity and enjoyed as a form of entertainment; and

4. While the vast majority of individuals can enjoy online gaming in a responsible way, some individuals need additional tools and support related to their gaming activities.

As the RG article in Casino Life notes, in our service-based industry, it’s the people who make the difference. Engaged and empowered employees are the front line in ensuring our industry delivers a sustainable, patron- and community-centred product. Based on the above numbers, and depending on where you are in the world and how you interpret dates, I’d say either 4/12 or 12/4 should become RG Patron Day in gaming properties worldwide.

IMAGE: M. C. ESCHER

IMAGE: PEDRO RIBEIRO SIMÕES

Outsource Digital Media

Powering connections