Home Gambling InsightsThe Gambling Industry’s Struggle with Social Trust

The Gambling Industry’s Struggle with Social Trust

by Sienna Marques
9 views 5 minutes read
The Gambling Industry's Struggle with Social Trust

In August, UK Prime Minister Andy Burnham ignited controversy within the gambling sector with a social media post that lumped "betting shops" together with "vape shops" while discussing "dodgy businesses."

Burnham’s sentiments reflect a view that many outside the industry seem to share. Simon Westbury, strategic advisor to 1xBet and director of 1xCare, as well as chairperson of its advisory board committee, offered his insights following Burnham's remarks.

"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’,” Westbury said, emphasizing how perception can override factual realities. "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 currently operate in the UK, Westbury brings 18 years of industry experience to the discussion, including prior roles at BetSoft and Digitain, alongside his time at Sheffield United. He highlights the importance of changing the narrative surrounding the industry, which faces challenges related to public perception and its recent treatment.

The argument that "we’re regulated" fails to shift the negative perception of the gambling industry, especially when statistics paint a different picture than the narrative portrayed by figures like Burnham. As reported, betting shops on UK high streets are declining, countering the idea of unchecked growth. This perception extends beyond the UK and traditional betting avenues, affecting the entire sector, with 1xBet often scrutinized more than others.

Regarding Burnham's post, Westbury noted that some in the industry expressed frustration, arguing, "But we’re regulated; vape shops are not.” However, he insists that merely claiming regulation doesn’t alter public perception or foster meaningful discourse about polarizing views.

Westbury pointed out that, although unlicensed in the UK, 1xBet operates under more than 35 local licenses with additional ones being acquired. "Everyone believes in regulation. Everyone understands regulation is needed, but it may not be perceived as beneficial if the offshore market is growing,” he explained. This concept of social licence—the acceptance from society that bolsters credibility—is crucial for the industry.

"Every industry operates or engages with its customers within the ability of a social licence," Westbury remarked, emphasizing the need for a renewed focus on player welfare and community engagement.

Reflecting on why the gambling industry is perceived negatively, Westbury highlighted the trend of prioritizing short-term gains, particularly through unrealistic welcome bonuses that lure customers. He stated, "There’s a very strong anti-gambling lobby. From an industry perspective, there’s been a real focus on instantaneity, pushing the envelope, finding loopholes, finding ways to operate."

He acknowledged the emergence of prediction markets and sweepstakes, suggesting that they dilute the industry's image rather than improve it. "What I would say to the industry is: stop focusing on instantaneity and focus on building long-term trust with regulators, governments, and society."

The current political climate displays a strong anti-gambling stance, as evidenced by Brazil's total online gambling ban along with strict advertising regulations in European nations including Italy, the Netherlands, and Spain. Westbury noted that research on gambling opinions tends to be polarized between staunch supporters and opponents. "I’m trying to find research that will actually be beneficial and not pushing a point… Something meaningful and impactful. That will take time.”

On compliance issues, Westbury previewed unpublished research indicating that 55% of participating operators considered compliance more vital than actual player protection, which he found alarming. "Everything is about compliance and maintaining your license,” he stressed. He called for integrating player protection and safer gambling measures comprehensively throughout the process.

He critiqued regulators for engaging in what he termed “performative compliance,” referencing annual audits that show minimal improvements. In light of the expanding offshore market, which 1xBet is actively working to address, he questioned the effectiveness of current regulations. "If regulators and governments are doing such a wonderful job at regulation, why is the offshore ‘dot-com’ market growing?"

Westbury acknowledged that gambling, which has persisted throughout human history, is unlikely to vanish. He pointed out, “People will find a way.” The idea that prohibition is ineffective is a common theme among industry professionals; however, the challenge remains to regulate successfully amidst a largely negative perception.

To shift this perception, Westbury calls for commitment from all sectors involved. He advocates for open communication, requesting that suppliers, operators, governments, and regulators engage constructively rather than defensively. Westbury stated, "Let’s sit down and discuss it and not just pull up the drawbridge."

He believes a collaborative approach within the industry could extend that dialogue to society at large. "If you’re not actually going as a united front, that’s when cracks appear, and water can seep through, as we know,” he remarked.

In the landscape of responsible gambling, 1xCare has emerged as a significant player, claiming to advance player protection. Westbury clarified that 1xCare operates independently, supported by a diverse advisory panel, and is not a mere extension of 1xBet. One of their first initiatives involved media training for grassroots football clubs connected to an amateur sports tournament organized by 1xBet in Nigeria.

With over 20 funding proposals received since its establishment, 1xCare highlights its intent to resolve industry-wide issues rather than merely those affecting 1xBet. Westbury emphasized transparency, stating, "We aren’t going to be judged on a press release. We’re going to be judged on what we deliver."

1xCare will focus on projects aimed at education, research, technology, and well-being within its first year. Westbury recognizes that while skepticism exists, success will build credibility over time. He concludes that raising awareness about responsible gambling necessitates collective action across all stakeholders.

He states, "It’s in everyone’s interest to ensure that a safe and regulated environment is provided rather than pushing people to unregulated spaces."

You may also like