Many companies are increasingly recognizing that sustainable business also means taking a closer look at the social impact of their own business model. In the gaming sector in particular, player protection plays a central role. Anne Pattberg, sustainability expert and external expert for the World Lottery Association, shows in her guest article why player protection is far more than a regulatory requirement, why the public health approach is gaining in importance and how the topic can be anchored as an integral part of a sustainable business model.
The blind spot in many strategies
Many companies have made great progress on sustainability issues in recent years. Climate targets, reporting, supply chains and governance are now on the agenda for many. However, less attention is often paid to the social impact of business models. This is precisely where there is a blind spot. After all, sustainable business doesn't just mean reducing emissions or meeting regulatory requirements. It also means taking the impact on people seriously.
The increased focus on social issues is not only due to a change in attitude within companies. External stakeholders are also making higher demands today. Investors are increasingly assessing social risks as business risks. Regulatory authorities and politicians expect risks to be identified earlier and addressed preventively. Customers, the public and the media are reacting more sensitively to business models that could have negative social consequences. And employees and future talent are also paying more attention to whether companies live up to their responsibilities in a credible manner. Social issues are therefore increasingly becoming a strategic question of trust, legitimacy and sustainability.
The gambling sector makes this particularly clear. Gambling is entertainment for many people. For some, however, it can also become a problem. Anyone who wants to operate responsibly in the long term must therefore also consider the possible social consequences of their own offerings.
When risks are part of the business model
Many companies still treat social issues separately from their actual business. They appear in reports, programs or individual measures, but are not necessarily at the heart of strategic decisions. This is no longer enough. Social responsibility must be more strongly integrated into the core business. Not as an add-on, but as part of corporate sustainability.
In the gambling sector, this means that the responsible handling of risks must not only begin when damage has already occurred. It must be considered at the product design stage. In communication. In sales. In digital offerings. And also in the question of how companies define growth in the first place. Because a business model that only looks at short-term profits and ignores social consequences is not sustainable in the long term.
Prevention instead of repair
This is precisely where the public health approach helps. It directs the focus away from the individual case and towards the bigger picture. Gambling-related harm is not just seen as an individual problem. They are seen as a social challenge. This is an important difference. Because it is not just about help in an emergency, but above all about prevention, education and early intervention.
This approach is also relevant for companies. It makes it clear that responsibility does not just begin when rules are broken. It starts much earlier. Namely with the question of how products work, which behavioral patterns they promote and how risks can be limited as early as possible.
Where gaming and gambling converge
It is particularly important to look at young people. In some areas, the transition between gaming and gambling is more fluid today than it used to be. Certain game mechanics, such as quick rewards or loot box-like elements (random-based virtual reward systems with uncertain content), can shape early experiences with chance, excitement and immediate rewards. This does not mean that gaming automatically leads to problem gambling. But it does show how important early sensitization is. Those who understand how such mechanisms work at an early age can better classify risks later on. This is also part of a responsible and forward-looking corporate strategy.
Why social issues are becoming strategic
The debate on sustainability will continue to change in the coming years. Climate issues will remain central. But social issues will come more to the fore. For companies, this means that credible strategies do not end with environmental indicators. They are also reflected in how seriously social risks are taken. The gambling sector makes this particularly clear. But the fundamental question goes far beyond this: how do companies design their business models in such a way that economic success and social responsibility go hand in hand? This is precisely what we should be talking more about.
The author
Anne Pattberg is Managing Director of PB Consulting GmbH and specializes in sustainability and ESG strategies as well as non-financial reporting. She previously held management positions at PwC and the Camelot Group. She is Chair of the Independent Assessment Panel for Responsible Gaming of the World Lottery Association and Deputy Chair of the Supervisory Board of IR.on AG. She has also played a leading role in the development of international consumer protection standards.
