After those dedicated to the points of view of Pieter Remmers (Assissa Consultancy Europe), Rachel Decelis (Kpmg Malta), here is a new episode of the special on sustainability produced by GiocoNews and published in the February review of GiocoNews (which can be consulted in its entirety at this link).
“Libertà è partecipazione”, the Italian Giorgio Gaber once sang (“Freedom is participation”). Paraphrasing the famous sentence that has become a symbol of a political and musical season in our country (apologies to readers in other countries who will probably miss the quote), speaking of gaming and regulation, we could say: "Sustainability is cooperation". And this is exactly what two experts on the subject such as Charmaine Hogan, head or regulatory affairs of Playtech and Francesco Rodano, chief policy officer of the same group, suggest. Two professionals with an important past in the institutional field and today engaged in the disclosure of good practices for the creation of a sustainable gaming ecosystem. Their point of view on the subject of sustainability as a goal for the gaming industry is therefore interesting: and we asked them about it in this double interview, which we propose here.
From your global perspective, what would you say about the level of preparedness and understanding on the part of the gaming industry with regard to the topic of responsible gaming?
CH: “This differs from one region to another, which is not surprising when considering the sector's varying maturity levels of legalisation. However, until more recently, as an industry we have been complacent, until changes were trigged - tighter public and regulatory scrutiny. Today, more in the industry have embedded responsible gambling practices across their business. This is a marked change from passive approaches to player protection of the past, but I believe more of the industry should be seeking a deeper understanding of what drives problematic play, the ensuing problems and the possible consequences. This will allow for meaningful discussion with regulatory authorities, including in newly regulating markets, so local regulations will address responsible gambling more adequately”.
FR: “As Charmaine mentioned, In the most mature gambling markets, especially across Europe, governments have been escalating regulatory restrictions, such as the advertising ban in Italy and a lower maximum stake for the gaming machines in the UK, just to name two examples. Those restrictions seem to be driven by a growing concern and sense of unease, among the citizens, because of the perceived lack of protection for vulnerable players and problem gamblers. This ongoing regulatory pressure has urged the industry to raise the bar of players' protection, and much progress has been made in the last few years. However, I believe that it would be imperative to keep the momentum going. There is still much work to be done, both in terms of harnessing the enormous amount of behavioural data operators have access to, but most importantly in transparently sharing the outcome of each company's safer gambling initiatives across the industry and with the regulators. This enables us to learn from each other and improve our general knowledge about what are the most effective ways to protect vulnerable players”.
What is the level of preparedness on the topic on the part of regulators? And most importantly, what role can regulators play in creating a sustainable environment from a responsible gaming perspective?
CH: “Law makers and regulatory authorities start with correct intentions to adopt rules or guidance to protect the players and consumers/citizens more widely. Often, the pitfall is that regulatory provisions from other jurisdictions are lifted and then topped up in aiming for high standards. At Playtech, we're used to complex requirements because we support operators across many regulated markets. However, regulatory authorities should also have a better understanding of the adverse effects that some restrictive measures can have on players. One way is to have regulator dialogue with the industry and other relevant entities, make good use of operator data where reported and utilise research. Ultimately, the regulatory goal should be the adequate protection of players that may encounter harm and not drive others away from locally regulated websites”.
FR: “On the other hand, regulators' level of preparedness seems to have significantly improved in the last two/three years, or is at least showing an interesting trend. Countries like the Netherlands, France, Spain, and many others require their licensees to use behavioural analytics to identify players who might show early signs of problematic gambling. This represents a shift from the traditional approach to imposing one-size-fits-all restrictions (such as deposit, spending or stake limits) that apply to the whole player base, regardless of the individual risk level. Even more, those countries also demand the operators to interact with players flagged as at risk, at the earliest possible stage to assess their condition better and undertake the necessary actions to help them not lose control. Eventually, regulators will compare the respective experiences and also evaluate the effectiveness of the practices put in place by their licensees, which will naturally lead to the improvement of the regulatory framework for safer gambling, essentially raising the bar for the whole industry”.
Do you believe that there are more accurate/depth or responsible gaming oriented legislations that can be considered best practices globally?
CH: “As Francesco said, there is a number of jurisdictions with robust expectations on their licensees in this area. In a fast-moving online environment, accuracy is never static, and research as much as regulations need to keep pace. A good practice, in my view, is the increased emphasis we are seeing on the early identification of signs of problem gambling and where the regulatory authority intends to assess this area regularly. I believe the Netherlands and Ontario (Canada) are the two best practice jurisdictions in this area. They differ in their approach, one being rules-based the other principle-based. But they are similar in their high expectations of industry behaviour, especially regarding responsible gambling. Operators are obligated not only to have robust responsible gambling policies but also, as mentioned, the tools to identify players who may be experiencing problematic play and intervene accordingly. Additionally, whilst in The Netherlands, operators are expected to have a responsible gambling representative, in Ontario, operators will need a Responsible Gambling Accreditation. Of interest, the policy outlook differs when it comes to advertising".
FR: "It's difficult to name a single market, as there are many examples of how the different aspects of responsible gaming are handled across regulated jurisdictions. I agree with Charmaine that a good example is the Netherlands, in which the online gambling market was opened only recently, in October 2021. The regulator there could benefit from the previous experiences of their colleagues and adopted a responsible gaming framework which is particularly modern. According to the Dutch rules, licensed operators are subject to an 'active duty of care' to prevent problem gambling. This requires that they monitor and analyse player behaviour and intervene, as appropriate, where necessary.
These are examples of the requirement set by the Dutch regulations: 'The licence holders must record the data in such a way that risks of gambling addiction can be identified at an early stage'; 'The analysis is aimed at the early identification of signs that could point to risks of gambling addiction'; 'If the analysis points to risks of gambling addiction, the holder of a licence must take appropriate intervention measures to prevent gambling addiction; In the event of reasonable suspicion of excessive participation in games of chance or of gambling addiction, the licence holder alerts the player to their gaming behaviour'. It is also worth noting that three years after the market's opening, the Dutch regulator will assess how the operators have executed those requirements to adopt more detailed rules based on what will have proved to be the best practices”.
What is most lacking, in your view, in the gaming world to start a truly virtuous path in this respect?
CH: “Collaboration. Evidence-based approaches. Personalised player protection. I firmly believe that these three issues matter, and all stakeholders should enhance their efforts. At Playtech, we are invested in player protection, we proactively seek to collaborate wherever possible, support topical research and widely share these. For instance, we carried out a consumer survey in a number of countries in Latam to better understand player preferences and concerns. We are strong advocates of the use of technology and tools for better player protection and for players to enjoy their entertainment of choice more safely. I believe this is important in markets newly embarking on regulating online gambling, where a deeper understanding of responsible gambling and player protection may still be taking shape. More recently, we have seen newly regulating US states place responsible gambling front and centre from the outset. For gaming to benefit all stakeholders, the industry must leverage the technology and tools available for player protection to be central to the customer experience”.
FR: “If I had to choose just one of the three aspects mentioned by Charmaine, which are all very valid points, I'd say collaboration. If all stakeholders shared their experiences, we would have access to more evidence on what is effective. This, in turn, would lead to accurate individual risk assessments and personalised player interactions, dramatically improving the quality of the safer gambling tools and practices available on the market, which is the only way to reduce the harm caused by gambling.
I have the impression that, in the last years, industry competition and the need to maximise revenues and increase market share have partly hindered this kind of collaboration. Sometimes operators may be reluctant to share information and practices that they see as a competitive advantage, which, in the case of safer gambling, when the health of the citizens is at stake, shouldn't be acceptable. Additionally, improving the level of player protection can be costly and does not bring more customers in the short term.
That is why I believe gambling regulators can have a key role in fostering industry cooperation. Firstly, companies must adhere to establishing standards and best practices for safer gambling. Secondly, and most importantly, by encouraging cooperation and promoting transparency, for example, by requiring companies to report on their safer gambling practices regularly and making that information publicly available in the most transparent and detailed possible way”.