RESPONSIBLE GAMBLING: WALKING THE TIGHTROPE
At the IAGA Summit in Berlin, Alan Feldman, Distinguished Fellow at UNLV’s International Gaming Institute and a seasoned voice in global responsible gambling policy, will be discussing the challenges and misconceptions around responsible gambling (RG), the role of regulators, and the balance operators must strike between profitability and public trust.
Alan, how does the risk appetite of operators influence the implementation of responsible gambling measures?
Te customer relationship is central here. Te truth is, there’s no singular risk appetite across the gambling sector - it varies dramatically. We don’t see a consistent “industry” response to responsible gambling. Just about everyone includes a message on their website or an annual statement declaring their commitment to RG. Tat part is consistent. But what follows? Tat’s where the real difference shows. Some back it up with serious investment and structure. Others, less so.
What are the biggest misconceptions about the gambling industry’s commitment to responsible gambling?
Te most common one is disbelief - disbelief that any operator truly cares about RG. But I know from experience that isn’t accurate. I’ve worked with operators who cared deeply and demonstrated that care through action. Te issue is that the public - and sometimes policymakers - treat the entire industry as a monolith. Tat’s a mistake. If you're on the outside, it's important to distinguish between those who are genuinely advancing responsible gambling and those who are not. Otherwise, no one else will.
Tere’s also misunderstanding from regulators. By the time an issue reaches the regulator, the conversation should be: what are we trying to achieve? What’s realistic? If the goal is to eliminate problem gambling entirely, they’re on a fool’s errand. Te focus should be on prevention - how can we support people in staying healthy in their gambling activity? “Just Say No,” as Nancy Reagan once said, doesn’t work in this context.
How can gambling operators balance profitability with the need for stronger RG measures?
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It depends on how they define profitability. If it’s purely about quarterly revenue growth - 4-5 per cent every three months - then the business is on a short-term path. But long-term profitability depends on relationships. In this industry, we talk about “lifetime theoretical value” (LTV). If you believe in the lifetime part, then it must be managed accordingly. If you try to extract all a customer’s LTV in one quarter, what happens next quarter? You’ve likely damaged both the customer relationship and your future revenue.
Ultimately, companies need to ask themselves: which is more important, people or profits? If you want to build a sustainable business, customer well-being should be central to your strategy.
Are current responsible gambling initiatives more about optics than effectiveness?
Some are, but not all. Te industry is incredibly complex, ranging from - terrestrial to online, games and gambling, manufacturers and designers. So yes, there are initiatives that serve more as appearances, but it’s not universal or consistent.
I’ve been in the room where the CEO says, “We’re committed to responsible gaming,” and then you visit their website and the landing page is filled with promotions, special odds, and bonus play. Scroll to the bottom, and that’s where you find RG - next to the disclaimers, about us and T&Cs.
I once delivered training for a casino operator and pulled screenshots from their site. I clicked “Responsible Gaming” and the first thing that popped up was a hero image of their casino. Right below that? Te words “Problem Gambling.” So, the messaging came off as promoting the casino through the problem. To their credit, they fixed it within 24 hours - but it illustrates how easily this can be overlooked.
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