Eco-Friendly Casinos and a Stable Development Trend

Experts of the Rosloto studio will talk about ESG principles and their impact on the gambling niche. We are going to explain to you how operators support ecological initiatives and what benefits they get from this.

What are ESG Standards

They are based on 3 interrelated components:

• ecology;
• social policy;
• corporate governance.

The concept dates back to the 60s of the past century. At that time, leading financial organisations began to use social and environmental criteria to determine additional responsibilities for selecting investment objects.

The ESG rules were completely formed only in 2005 by the then UN Chairman Kofi Annan. The report entitled “Who Cares Wins” had a great influence on many business stakeholders: managers, directors, investors, and analysts. It also encouraged them to include such initiatives in their companies’ development strategies.

Today, these criteria are actively used in many areas, and gambling is no exception:

• According to the Global Sustainable Investment Alliance, about $40 trillion is concentrated in ESG assets worldwide.
• Bloomberg Intelligence provides the following statistics: at the beginning of 2024, $53 trillion we put into such standards.

The Letter “E” in the Abbreviation

The whole concept is expressed in 17 Principles of Responsible Investment, and 6 of them are related to ecology:

• clean water and sanitation;
• affordable and net energy;
• responsible consumption and production;
• combating climate change;
• ocean conservation;
• protection of terrestrial ecosystems.

Environmental initiatives are actively promoted at the international level. For example, in 2015, world leaders adopted the Paris climate agreement. All European countries plan to reduce waste and CO2 emissions, as well as a complete transition to carbon neutrality.

Among the popular environmental initiatives, we can also highlight the following ones:

• reducing the carbon footprint of enterprises;
• efficient use of resources;
• switching to renewable energy sources;
• reducing the influence on biodiversity and climate;
• creation of a sustainable supply chain.

The trend towards stable development is becoming in demand among business owners, investors, and consumers:

• According to the EY audit and consulting firm, 97% of investors are guided by the ESG index when deciding which companies to invest in.
• The Edelman consulting centre states that 71% of customers are ready to stop using the products of brands that refuse to care about the environment.
• 71% of Europeans believe that entrepreneurs, as well as public and government institutions, are responsible for solving ecological problems.

How ESG Affects the Casino and Sports Betting Industry

At first glance, it may seem that gambling and the environment are not related, especially when we are talking about the iGaming vertical, but this is not entirely true.

The operation of online casinos depends on data centres, which are strong air pollutants. At the beginning of 2024, their number exceeded 1,000 units. Each of them indirectly provokes CO2 emissions into the atmosphere. In total, this is about 2% of the world's amount of greenhouse gases (the same number as from air transportation).

Entertainment brands usually require significant human resources. Employees work in large offices, which may lead to additional pollution in the form of garbage and household waste.

Another problem for the niche is the huge digital footprint that users leave on the Internet. It also leads to an increase in CO2 emissions.

Initiatives aimed at easing the environmental impact:

1. Involvement of cloud service suppliers. Such solutions are an excellent alternative to data centres. The latter, as we have already mentioned, cause enormous ecological damage and, therefore, require large-scale changes.
2. Reduction in travel. This means encouraging video conferencing and the use of public transport or bicycles. A good idea would be to install chargers for electric vehicles on the territory of the office block where the firm is located.
3. Modernisation of premises. Among the effective options, we can include the installation of photovoltaic panels, green roofs, and LED lighting, as well as tinting of window glass and recycling of rainwater. Many companies certify real estate (land-based casinos, gambling halls, data centres, etc.) according to the ISO 50001:2018 standard.

Why It Is Important for Operators to Adhere to ESG Initiatives

Let us consider the main advantages of implementing such rules:

1. Customer acquisition. In the past few years, players have become more inventive when choosing an online casino. They can easily refuse to place bets if the iGaming brand seems insufficiently eco-friendly. Such trends are especially common among Generation Z (a solvent and valuable client group).
2. Investors’ interest. The world’s leading holdings and private venture capitalists are more likely to redirect their cash flows to entertainment projects that adhere to environmental standards. Providers that demonstrate it become attractive for long-term investments.
3. Improvement of the casino project’s image. Following the principles of sustainable development is a great newsbreak. Enterprises that care about the ecology inspire more confidence from the public.
4. Risk reduction. Compliance with ESG principles helps to avoid financial or reputational losses, reduce operating costs, and protect the business from unplanned expenses.
5. Increase of competitiveness. This is another reason for introducing such practices. Firms become more stable and responsible, thanks to which they easily outpace opponents in the long term.

Today, the principles of sustainable development are becoming a trend, and ignoring them is considered a bad form. More entrepreneurs from various sectors of the economy are investing in ecological initiatives, various funds, and research centres that combat climate change.

How Market Leaders Follow Such Standards

Let us have a look at examples of well-known companies:

Evolution

The Swedish provider recognises that its activities have an impact on the ecology and takes active measures to lower it.

The firm’s main initiatives are:

1. Power efficiency. This is the use of energy-saving lighting, heating, and cooling systems and modern equipment. The brand also invests in renewable energy sources in data centres and live studios to further reduce its carbon footprint.
2. Waste minimisation. The vendor has implemented recycling programs at its facilities, as well as an incentive system for employees who pay attention to the issue in their daily activities. Evolution Gaming is exploring methods of reusing waste to reduce its environmental impact.

Entain

The company's policy is one of the most successful and significant in the gambling sector.

The casino and sportsbook operator announced that it intends to achieve net zero emissions by 2035. For that purpose, an ESG strategy with 100% renewable electricity was recently adopted.

The firm already purchases 90% of its electricity in the UK and Ireland, using renewable sources and biofuel.

The enterprise is also investing in energy-efficient technologies, thus optimising its data centres and reducing waste in its offices across Europe.

Betsson Group

The software vendor has made great improvements in the field of environmental stability.

The brand has set science-based targets for 2030. They were officially confirmed by the SBTi and included:

• reduction of direct and indirect greenhouse gas emissions by at least 55%;
• decrease the amount arising in the value chain (excluding purchased energy) for Betsson's operations by at least 15%;
• doing a 100% climate-neutral business.

The provider promotes waste processing and invests in renewable energy for its offices and data centres.

Playtech

In February 2024, the company has made commitments to:

• reduce emissions of the categories 1, 2, and 3 by 50.4% by 2032;
• achieve the net-zero indicator by 2040.

The firm’s targets were approved by SBTi.

In 2020, the developer created a cross-functional Environmental Forum that meets quarterly. Its competencies include creating and supporting Playtech's environmental policy, monitoring the selected strategy, and responding to climate change issues.

Pragmatic Play

The main initiatives of the enterprise that has its headquarters in Romania are aimed at financing local bulks and foundations:

• In 2024, the company donated €10,000 to support the Papi Land Sanctuary, managed by Kola Kariola. The money was used to expand the reserve.
• The provider donated € 10,000 to the WWF, which protects wildlife in the Carpathian Mountains and along the Danube and restores rivers, forests, and freshwater ecosystems.
• In 2023, the manufacturer joined the Mai Mult Verde association to plant seedlings on unproductive land in Talpa, Romania. The €10,000 contribution was sent to the long-term Gift A Tree campaign, which prevents deforestation and improves the quality of people’s lives.

The Main Things about Ecological Initiatives in Gaming

ESG is a sustainable development principle that is gaining popularity in the casino and sportsbook niche.

Key aspects that operators need to take into account:

• Ecological practices focus on issues of climate change, depletion of natural resources, various types of pollution, deforestation, and biodiversity loss. Great attention is also paid to the reduction of CO2 emissions and energy conservation.
• Implementation of ESG initiatives increases the competitiveness of brands and their resilience to various risks. As a result, the image of iGaming enterprises improves, as does their attractiveness in the eyes of players, B2B partners, and investors.
• Among the leaders in the implementation of environmental standards, we can name Evolution, Entain, Betsson Group, Playtech, Pragmatic Play, and other suppliers.

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