Opinion by Ricardo Pereira, CEO of ComOn
If there is one industry that has been growing across all dimensions, it is gaming and betting. This growth is not limited to economic and financial indicators, but also extends to the political and social scrutiny the sector faces.
Scrutiny is positive because it normalises the market, pushes out bad practices and strengthens its credibility. However, this credibility does not necessarily transfer to brands.
A common mistake in highly regulated industries is to view reputation as something to be addressed by a compliance department.
The solution should be very different from this. Brands must be proactive and take control of their own reputation, based on a long-term strategy. Just like brands in any other industry.
One of the paths advocated by the State is the promotion of sustainable and healthy gambling. To support this, we have SRIJ (the Gambling Regulation and Inspection Service), which defines the “rules of the game”, imposing age and identity verification, self-defined spending limits, breaks or self-exclusion, as well as other mechanisms, some of which relate to advertising, including who it is aimed at, the content of messages and even font sizes.
On the other hand, how does this approach fit with short-term business objectives?
Yes, these brands are designed to make a profit, and this is where performance strategies come in, whether through promotional dynamics such as welcome bonuses, free bets and VIP programmes, or others.
Player acquisition and retention tactics are normal, but in the long term they do nothing for trust and do not build brands. They simply result in users moving from platform to platform in search of the next offer.
These performance-driven actions, and the intended profit, are not inherently bad and, if conducted ethically, do not damage the brand. However, to build a brand that supports a sustainable business and lasts for decades, aggressive acquisition must be complemented by a discipline of social impact that survives beyond the end of the promotion.
This is where Conscious Capitalism comes in.
Conscious Capitalism is a management philosophy that argues that profit can and should exist, but that a company’s mission does not end there. It should pursue other dimensions and create value for all stakeholders. This should be done ethically, through a clearly defined purpose and conscious leadership and culture. Put simply, and perhaps somewhat reductively: the results of a company’s activity should be good for everyone.
How does this philosophy relate to gaming and betting?
As I mentioned earlier, responsible gambling should not merely be rhetoric, but a purpose. Nor should it be limited to compliance with the rules defined by SRIJ.
Responsible gambling should be healthy and promote a positive entertainment dynamic. In fact, it should itself act as a driver and integrator of other forms of entertainment that are also healthy.
Investment in and promotion of culture and sport are some of the most obvious ways to achieve this. Whether through music, theatre, cinema, painting, literature, football, basketball or other forms of artistic and sporting expression, whether physical or digital.
There may, however, be a temptation to interpret this in light of what already happens with the distribution of online gambling taxes, which are allocated to sport, regulation and the prevention of addictive behaviours.
Or, on the other hand, in light of what has long happened with physical casinos, which are required to contribute to entertainment and tourism promotion in the areas where they operate.
That is not the path I am referring to, nor am I referring simply to taking advantage of the tax benefits associated with cultural patronage.
A brand with long-term objectives cannot view player protection and its role in society as a legal imperative. It must view the promotion of healthy entertainment, culture and sport as part of its own purpose, with real social impact and, above all, as a regular part of how the brand operates.
This should go beyond sponsoring clubs or competitions. That is the beginning of the conversation, but brands must also create and participate in people’s experiences within these contexts, democratising or expanding people’s relationship with culture and sport.
The bet this industry needs to make is not at a gaming table or in an odds chart. It lies in the legitimate trust it wants to earn from society, and that is not something a single campaign can deliver. It requires a coherent brand proposition reflected in its communication, supported by a consistent investment strategy not only in advertising, but also in cultural and sporting initiatives.
