Gambling addiction is a real problem. If we go by gambling addiction statistics, 2 million adults in the US suffer from gambling addiction or gambling-related problems every year, added by another 4 to 6 million Americans who have mild to moderate problems.
Given the rise of iGaming platforms across the world, the problem is only rising – according to the UK Gambling Commission, problem gambling among young people in the UK has grown 3 times in 2022. This is worsened by the cost-of-living crisis in the UK, which is driving more young adults towards gambling addiction.
Gambling addiction equates to higher revenue for iGaming operators and brands. But is this the sustainable way for iGaming businesses? No.
As recent regulations have given rise to acceptance of gambling and betting in countries, gambling addiction can drag this industry several years behind, giving rise to apprehensions in the newer markets.
That’s why many sportsbooks and operators around the world have come together to combat gambling-related problems and addiction using technology like iGaming Affiliate Tracking Software and collective measures.
But before we get to what you can do as an iGaming brand or operator to combat gambling addiction, let’s understand why gambling is addictive.
Understanding the Problem: Why is Gambling Addictive?
The problem with gambling arises from the player’s aspiration to hit that big bet – the ones that’s supposed to change their lives forever. When people gamble, their brain releases dopamine, the natural high. This gives rise to the feeling of excitement regardless of the outcome – win or loss.
With the hope of landing that big bet, players continue gambling huge amounts of money to get ‘something’ out of their gambling experience. Over time, this leads to mounting debts, losses, and even higher aspirations to win.
Individuals fail to recognize when they need to walk away from the slots. Coupled with the global economic crisis, young adults are looking for easy money and that’s where gambling comes in.
What iGaming Operators Are Doing to Curb Gambling Addiction?
One of the most popular efforts that an iGaming operator has taken to handle gambling addiction is Kindred’s 0% Mission. This mission aims to encourage operators to generate 0% revenue from high-risk gambling by the end of 2023. The group partnered with safe gambling solutions provider Gamban to make its France-based Unibet brand safer for gamblers. Kindred also partnered with monopoly operators ATG and Svenska Spel to publish data on problem gambling in Sweden.
Aland Islands-based operator Paf has introduced a lower mandatory loss limit of €10,000 for players in the 18 to 24 age group, with an annual loss limit of €20,000 for older customers.
“We have been looking for some time at what good we can do for younger people in the gaming industry so we can put in measures to better protect them,” commented Ludvig Winberg, Corporate Communications Manager at Paf, while talking to EGR.
What You Can Do as an iGaming Operator to Tackle Problem Gambling?
The above-mentioned iGaming operators and brands are taking hard-nosed measures at global level to bring down the impact of gambling on high-risk players. But it isn’t necessary for every iGaming brand/operator to launch an initiative at a massive scale. You can do your bit at an individual level to reduce problem gambling behavior on your platform.
How? Let us explain.
If you’re an iGaming brand or an operator, it’s imperative that you’re leveraging affiliate marketing to bring more players and revenue to your business. To track your affiliate marketing efforts, you must have a subscription-based affiliate tracking software for iGaming, let’s say Affnook.
Using player deposit data, you can understand their behavior on your platform and identify high-risk individuals – for example the ones who are visiting the betting platform more than thrice a week, who are depositing more than 1,000USD per month, etc.
Identify problematic player patterns using data analytics and AI
Leverage AI and data analytics on your iGaming management platform to identify players who are frequenting too much, investing big amounts of money, or are losing too frequently on your platform. This can help you funnel out high-risk individuals to further create a strategy to reduce their exposure to betting and gambling.
You can restrict their access to your platform for certain days to give them a cooling period or simply implement a deposit limit.
Send custom notifications to high-risk players
After identifying and segmenting high risk individuals from your regular players, send them custom notifications notifying them about their problem gambling patterns. As an iGaming brand/operator, you can also connect them with helpful resources or help to get over gambling addiction.
Analyze affiliate conversion rates
Conduct an analysis on high-converting affiliates to identify any aggressive marketing tactics towards vulnerable audience groups. Clearly communicate to your affiliates to use responsible language in their advertising practices. Repeat offenders can be banned from further collaborating with your brand.
Tackling gambling addiction is not just a social responsibility of iGaming brands. For the industry to flourish sustainably and collectively, the adoption of gambling has to increase and for this to happen, apprehensions around its potential risk has to go. This can happen only if iGaming businesses come together to do their bit in curbing gambling addiction. Only this is the way to grow exponentially and responsibly.
