Corporate Social Responsibility Reporting in the Casino Industry: A Content Analysis

Hence, we find evidence to support our first hypothesis (H1) and conclude that firms with positively skewed stock returns, which is considered as a lottery-type stocks by investors, tend to have higher CSR performance (CSR strengths). Kumar (2009) argues that lottery-like stocks can be measured as stocks with high idiosyncratic volatility, high idiosyncratic skewness, and low stock prices. Following Kumar (2009), we conduct another robustness test using the three measures of gambling attitudes. High Idiosyncratic Volatility, High Idiosyncratic Skewness, and Stock Price as our main independent variables.

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• Through these strategic alliances, iGaming companies harness their expertise and resources to address pressing social issues.
• The main effect of the weighting function is to overweight the positive tail distribution that is applied into the value function at the low probability level (Barberis and Huang 2008).

Corporate Social Responsibility (CSR)

This makes it critical for gaming companies to look at how they can reduce their organisation’s wider carbon footprint – such as by requiring that data centres use renewable energy. According to the Regulatory Entity, Coljuegos, the sector contributes with more than 1.5 billion Colombian pesos roobet a year for health, and this makes us aware as a union because both society and the sector need us, therefore we must fulfill them, returning them, not only in economic capital, but also, in social responsibility. Transparency and open communication with stakeholders are essential for demonstrating a commitment to ethical business practices. Gambling SMEs should regularly engage with their customers, employees, regulators, and the wider community to share information about their CSR initiatives and gather feedback.

Operators counter that most players gamble responsibly, while draconian measures could enable unregulated black markets. The MSCI ESG STATS assigns a binary rating to a set of strength and concern categories in each dimension. As the number of strength and concern categories for any given dimension varies over time, a simple summation approach does not allow for inferring that a CSR score of + 2 is twice as good as + 1 across firms and over time. Thus, we follow Deng et al. (2013) and Lins et al. (2017) and scale total strength (or concern) scores by the number of strength (or concern) categories in that year. Consistent with Deng et al. (2013) and Lins et al. (2017), our adjusted CSR score is then calculated by subtracting the scaled total concern score from the scaled total strength score. View more details on these four initiatives right here or simply reach out to Kindbridge Behavioral Healthright away.

Learning & Resources

Within the governance sphere, the economic performance and financial stability of the firm are naturally important to the firm itself. However, the company’s tax contribution also forms part of its positive contribution to society. When the tax strategy is aligned with the company’s ESG values, transparency about how much tax is paid and where it is paid can be used to underscore the message that firm is making an important contribution to the wider community.

As a gambling operator, it’s crucial to be proactive in addressing the growing concerns around gambling and mental health through a comprehensive CSR policy. When solid corporate social responsibility exists, regulated gambling can thrive alongside strong community mental health initiatives. The key to surviving the impending regulatory changes in 2024 is committing to comprehensive support for problem gambling within CSR programs. Within this dynamic area, the importance of CSR and ethical practices cannot be overstated. In an industry marked by rapid expansion and technological advancement, responsible business conduct is the cornerstone of long-term sustainability and reputation.

This study critically examines the role of stakeholder participation in corporate social responsibility (CSR) in the context of problem gambling within the New South Wales registered club sector. Utilizing qualitative research methods, the research focuses on interviews with co-researchers to gather insights on their perspectives regarding gambling and social responsibility. The findings suggest that multi-stakeholder networks can potentially contribute to managing problem gambling, but they also highlight the challenges and necessary conditions for such collaborations to be effective. The case of In Touch Games is a powerful reminder of the importance of corporate social responsibility for gambling SMEs. Small gambling businesses can make gambling safer and more reliable for everyone by implementing responsible gambling practices.

We create advertising campaigns that reach multiple audiences in the entertainment sector and the entire community interested in the world of casino machines. This project is proposed in order to improve the relationship of our businessmen with society and with their public and private interest groups. Gambling SMEs must comply with the regulations set by their respective governing bodies, such as the UK Gambling Commission (UKGC) in the United Kingdom.

In contrast, the Catholic church maintains a relatively tolerant attitude towards moderate levels of gambling and has even used bingo and charitable gaming events as fundraising sources (Diaz 2000; Hoffman 2000). Prior studies (e.g., Adhikari and Agrawal 2016; Chen et al. 2014) have used Catholics-to-Protestants ratio (CPR) as a proxy for local gambling attitude using distinct views on gambling between two religions. Due to the fact that ARDA provides the US county-level religion data just for the four reference years (1980, 1990, 2000, and 2010), we fill in the missing data between those four years by an interpolationFootnote 7 to construct CPR Ipolate. Following Hasan et al. (2017), we construct CPR Backfill by back-fillingFootnote 8 in missing data for in-between those four years and up to 2018 using the most recent CPR before the period begins.

Initiating problem gambling support systems for staff and customers/players isn’t just the right thing to do, it’s required if your company expects to keep up with leaders in the industry. Both BetMGM (view details) and DraftKings (view details) have teamed up with Kindbridge Behavioral Health services to pioneer mental health access programs for problem gamblers, beginning in the state of Colorado (a model of gambling support). Your company can become a part of this movement in your state by working with Kindbridge today, or you can leave it to the competition to set the new standard in CSR in the gambling industry. While stating it supported the principles of corporate social responsibility and consumer protection, HUPIS warns the reforms could have serious consequences for the legal industry, employment and the state budget. At face value, the gaming sector might not seem like it has many environmental impacts. But digging below the surface, we can see that gaming creates a demand for carbon emissions – such as through data centres and business travel.

A company can attract customers, investors, and employees based on its sustainability credentials. Measures taken to improve diversity can lead to innovation, resulting in sustainable growth. And companies who are leaders on ESG can potentially benefit from increased access to capital and reduced cost of capital.

Hence, programs like waste management are effectively implemented to reduce waste and promote recycling. A fine illustration that rich and poor alike need protecting when considering problem gambling. Squeezing customers’ resources is likely to lead to both a greater frequency of addiction problems and, in some cases, financial and/or mental ruin. First, it seems clear any such firm would have to be at least homing in on the zero-harm goal in terms of gambling’s impact on players. This would require more investment in local resources for treatment and prevention, not to mention research. Short-term thinking is an affliction deep-rooted and almost definitional to the nature of a corporate structure.

Our measures differ from Kumar (2009) since we are trying to capture gambling attitudes from the loss aversion perspective from CSR engagement. Following Barberis and Huang (2008), we argue that companies with greater stock returns skewness and positive stock return skewness are more likely to experience greater loss aversion. Because of their loss aversion from missing a chance of winning a big payoff (i.e., large potential monetary and non-monetary gains from CSR engagements), firms incline to engage in CSR activities. By engaging in CSR activities, firms are able to capture the potential monetary and non-monetary gains from their stakeholders. There are 66,141 firm-year observations in the MSCI ESG STATS over the period from 1991 to 2018.

3. CSR Communication in the Casino Industry

Following previous studies (Adhikari and Agrawal 2016; Di Giuli and Kostovetsky 2014; Endrikat et al. 2021; Jha and Cox 2015; Jha et al. 2018; McGuire et al. 2012), several control variables included in the regression such as firms’ Size, WW Index (financial constraints), ROA, Dividend, Leverage, and Market to Book. We control for corporate governance variables such as Board Size, Board Independence, Board Tenure, and Board Female. We also include county-level control variables such as Social Capital, Religiosity in a county; Population in a county in a given year. We include Year is year indicator (Year FE); FF49 is Fama–French 49 industry indicator (Industry FE).

The survey also assessed support for certain management practices in responsible gambling. The results indicate that the participating club managers prioritise economic, legal, ethical and discretionary principles respectively, and that these are statistically related to practices they have implemented and support in responsible gambling. The managers most favoured secondary harm minimisation practices, followed by reactive primary intervention. These principles and practices contrast markedly with those advocated by key stakeholder groups, as expressed in semi-structured interviews and submissions to the NSW Gaming Inquiry. Nonindustry stakeholders favoured a more balanced set of principles and a more holistic set of management practices in responsible gambling. The results also provide validation of Aupperle’s (1982) instrument when applied to corporate management of a single social impact and for Carroll’s (1979Carroll’s ( , 1991 construct of corporate social responsibility.

Some state regulators who initially supported the legalization of sports betting are now on the verge of turning back on game providers following the rise of problem gambling addiction. There are many challenges and ethical dilemmas, highlighting the intricate dance between ethics, profitability, and adherence to regulatory standards. Below we will look into ethical quandaries that frequently confront iGaming, the delicate balance between financial success and social responsibility, and the critical importance of upholding ethical standards in a rapidly evolving industry. The impact of casinos on charitable giving and community development is quite a good cause that helps a lot of people. Another charitable and CSR contribution to communities is its education and training approach.

Ethical conduct is both a moral obligation and a legal imperative within the industry, emphasizing the commitment to responsible gaming and ethical practices. The iGaming industry grapples with a spectrum of ethical concerns, ranging from responsible gaming practices and fair play to preventing problem gambling. The challenge lies in finding an equilibrium between profit generation and safeguarding player well-being, as ethical integrity is central to building trust with customers.

All disaggregated CSR scores are calculated as adjusted scores as previously described. By definition, corporate social responsibility (CSR) is a business concept that holds an organization accountable to itself, its stakeholders, and the public, when it comes to a number of issues. Harvard Business School delineates these issues into environmental, philanthropic, ethical, and economic categories. The scorecard on these categories varies significantly across industries, with failing grades typically reserved to companies that cause and/or contribute to categorical problems. For example, Big Oil faces an uphill battle in environmental CSR in the same manner that Big Pharma fails in the ethics surrounding substance abuse disorders.

To promote a learnt society, casinos often offer scholarship programs and educational grants to support the local students who are willing but struggling to educate themselves. More stringent measures adopted by some operators include banning credit, prohibiting alcohol service on gaming floors, and introducing slower game speeds with lower aviator casino bonus. Most governments have addressed problem gambling as a public health issue, funding awareness and treatment initiatives. Industry critics argue operators should likewise prioritize consumer protection over revenue growth. Gambling operators are also required by law to offer players the option to self-exclude. Self exclusion (SE) programs can be effective in keeping problem gamblers away from land-based operations in their respective locales but it does little to no-good when it comes to online gambling.