Home Gambling Industry InsightsUnderstanding the Gambling Industry’s Social Licence Dilemma

Understanding the Gambling Industry’s Social Licence Dilemma

by Sienna Marques
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Understanding the Gambling Industry's Social Licence Dilemma

In August, UK Prime Minister Andy Burnham sparked controversy within the gambling sector by likening betting shops to "dodgy businesses" in a social media post that also included vape shops. This characterization resonated with many outside the industry, reflecting a broader, negative perception.

Simon Westbury, who serves as a strategic advisor to 1xBet and now holds the position of director at 1xCare, offered his insights on Burnham’s remarks. He stated, "It’s an example of the industry losing their social licence and their ability to operate in an environment. It’s also a case of ‘don’t let the facts get in the way of a good story.’

"It really comes down to perception. You have a leader of a country saying this is intrinsically bad or grouping it with questionable industries. What he’s saying isn’t supported by evidence, but… does it resonate with people? Yes, it does."

Although 1xBet does not operate in the UK, Westbury, drawing from his extensive experience in the gambling industry, including senior roles at BetSoft and Digitain as well as a period with Sheffield United, understands the challenges of addressing negative optics.

The perception that regulated status alone is sufficient to assuage concerns is misleading, as Westbury pointed out. Although betting shops in the UK have seen a decline contrary to the narrative of unchecked growth, the entire gambling industry is stigmatized, particularly entities like 1xBet.

In response to Burnham’s comments, Westbury remarked, "Some of the industry threw their arms up in the air and said, ‘But we’re regulated, vape shops are not.’ But just saying you’re regulated doesn’t change the perception and doesn’t move the discussion forward to a point where we may change this or actually start challenging some of the polarized views that exist."

He noted the industry's ongoing focus on finding loopholes and operating outside strict regulations. Even though 1xBet has over 35 local licenses and plans to expand further, the idea of social licence—acceptance from the community—is essential for credibility within the sector.

"Every industry operates or engages with its customers within the ability of a social licence," said Westbury. He urged the need for the industry to put player welfare at the center of operations if it hopes to regain its social licence.

A critical issue is the short-term approach often adopted by gambling operators. The allure of generous welcome bonuses with unreasonable wagering requirements can lead customers to unrealistic expectations.

"There’s a very strong anti-gambling lobby," Westbury observed. "From an industry perspective, there’s been a real focus on instantaneity, pushing the envelope, finding loopholes, finding ways to operate."

He also highlighted the rise of new gambling formats, like prediction markets and sweepstakes, expressing concern that these developments might not contribute positively to the industry's image. Westbury recommended that the industry shift its focus away from immediate gains and prioritize long-term trust-building strategies with regulators, governments, and society.

The political climate has tightened, with countries like Brazil imposing total online gambling bans and strict advertising restrictions prevailing in Europe. According to Westbury, this environment reflects a polarization in public opinion that complicates productive dialogue and research.

Amid these pressures, Westbury pointed out a troubling finding from unpublished research conducted by 1xCare, revealing that 55% of participating operators prioritized compliance over player protection. He emphasized that gambling companies must incorporate player protection measures from the initial stages of product development, rather than retrofitting compliance after the fact.

Regulators also face challenges, as Westbury noted some resort to performative compliance. "We see a lot of regulators doing annual reports, saying they’ve audited operators and found numerous issues, but that’s performative to me,” he said, highlighting the need for meaningful regulation in the face of a rising offshore market.

He questioned why, if regulators are effective, the offshore gambling market continues to thrive. "If the offshore market is growing, there’s a problem. If it’s shrinking, then we’re heading in the right direction. At the moment, everything seems to be polarized, and people are pointing fingers."

Westbury acknowledged historical failures of prohibition, noting, "Gambling’s been around longer than money; people will find a way."

He called for a collective commitment among operators, suppliers, regulators, and governments to engage in open discussions that foster understanding. Westbury elaborated, "There needs to be some give and take from both sides to create a regulatory environment that promotes safe play."

The recent establishment of 1xCare emphasizes a commitment to responsible gambling and player protection. The NGO operates with an independent advisory board featuring experts like Quirino Mancini and Chris Bird.

In addressing whether 1xCare simply serves 1xBet’s interests, Westbury clarified, "If it was, we wouldn’t have set up a separate body. We are looking to fund projects that address industry-wide problems."

Westbury shared early successes, noting a significant number of funding proposals received since 1xCare’s launch in July. Despite the funding connection to 1xBet, he expressed confidence in the independent nature of the board members’ involvement and their mission to tackle broader issues in the industry.

He laid out expectations for 1xCare’s first year, asserting that transparency in funding and operations would be paramount. "We aren’t going to be judged on a press release; we’re going to be judged on what we deliver," he stated.

To drive positive change, Westbury underscored the necessity of collaboration across the gambling ecosystem. He urged industry participants to abandon isolationist attitudes and engage in productive dialogue, noting, "If you’re not going as a united front, that’s when cracks appear."

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