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Measuring the ROI on responsible gambling

Shelley White by Shelley White
Wed 2 Dec 2020 at 11:46
Measuring the ROI on responsible gambling
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In the third installment of a new collaboration between IAG and the Responsible Gambling Council – a global non-profit organization based in Canada – RGC CEO Shelley White explains how RG policies contribute to player loyalty, staff satisfaction and ultimately an organization’s bottom line.

Across the globe, responsible gambling is recognized as a priority for the majority of gaming and gambling operators and regulators. While most understand the importance of minimizing potential harms and reducing problem gambling, what is not easily understood is how to measure the financial contribution of responsible gambling to an organization. The one question we have been asked repeatedly by operators around the globe is “does RG contribute to the bottom line?”

Responsible gambling is the adoption of policies and practices that promote healthy gambling habits while mitigating risk. These strategies will differ depending on the type of market, from an emerging market like Vietnam or a mature market like Singapore – it is not a one size fits all approach.

The requirements established by the regulator also play a role in determining an operator’s investment. What remains the same is the positive outcomes responsible gambling yields in creating a loyal and sustainable player base and an organizational culture with high staff retention. Recognizing the importance of building responsible gambling policies and evaluation metrics into fiscal planning means that these core concepts will continue to pay dividends over time.

AN INVESTMENT IN RESPONSIBLE GAMBLING CREATES PLAYER LOYALTY

At the heart of responsible gambling is the protection of players and the public from gambling harms. An operator’s commitment to these RG practices creates a direct link to its customer base. Over time, this link can become a relationship as customer loyalty increases when they feel as though their well-being is important. Customers will return to a venue that provides tailored and culturally appropriate player facing communications that are relevant to them. Loyalty influences the growth of a sustainable player base.

In jurisdictions like Macau, where the geographic area is small but the gambling options are abundant, player loyalty is especially important for the bottom line. Players will go where they feel valued and support an operator with whom they feel a connection.

HUMAN RESOURCES AND CAPITAL ARE AN IMPORTANT ASSET

Just as player loyalty reinforces the creation of returning customers, an organization’s investment in human resources fosters the retention of loyal employees. Staff are crucial as they carry out organizational policies and have the ability to shape an organization’s reputation. The adoption of responsible gambling policies helps with retaining staff who perform at high levels and are engaged with the organization but also the player base.

When staff satisfaction is high, it can transform into many positive impacts for an organization from employee commitment and engagement to increased job performance. RG is an investment in people and its return is invaluable.

EVIDENCE-BASED RG POLICIES REINFORCE THE BOTTOM LINE

Metrics like accreditation and training evaluations provide operators with a roadmap for continuous improvement. It demonstrates an organization’s commitment to transparency about how it protects player health. This accountability builds trust and is a positive influence on the bottom line.

In the Asian market, integrity is a core value and third party evaluations can enhance this by increasing credibility in the eyes of internal and external stakeholders as well as the public. Measuring the impact of RG on both organizations and players closes the fiscal loop, helping to inform policies and provide solid evidence that it belongs in the operating budget.

Responsible gambling increasingly is becoming a core component of an organization’s business strategy, like human resource management, marketing and compliance. RG is a strategic investment in the creation of loyal, returning players, engaged and satisfied employees and reputation management, which contribute to the growth, sustainability and credibility of an organization.

Learn more about RGC at http://www.responsiblegambling.org.

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Shelley White

Shelley White

Shelley White has dedicated her life and career to empowering organizations that create better futures for people in their communities. Prior to becoming CEO of the Responsible Gambling Council in 2017, Shelley spent the last 30 years holding a variety of executive positions, also in the non-profit sector, for some of Canada’s most recognized and trusted institutions.

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