## iGB Weekly Special: A Different Viewpoint
The gaming industry is in a state of flux, with companies prioritizing responsible gaming. Many firms have sought external assistance to accomplish this, notes Daniel O’Boyle. However, can outside advisors truly alter an organization’s ethos?
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**iGB Weekly Special: A Different Viewpoint**
The gaming industry is in a state of flux, with companies prioritizing responsible gaming. Many firms have sought external assistance to accomplish this, notes Daniel O’Boyle. However, can outside advisors truly alter an organization’s ethos?
When Sweden was preparing to launch its newly regulated market in early 2019, Zenita Strandäng and Monica Medwall (pictured), who had long served as responsible gaming advisors for Svenska Spel, recognized a need: their knowledge could be beneficial to new companies entering the market.
“We wanted to have an open door, as we say, for the new license holders to want us to help them build their own responsible gaming strategy,” Medwall explained.
The two decided to seize the opportunity, leaving Svenska Spel to establish Strandäng and Medwall Consulting, focusing on responsible gaming and sustainability.
The initial nine months in the market have demonstrated that they were correct about the challenges of navigating responsible gaming in Sweden.
Swedens gaming watchdog, Spelinspektionen, has been issuing penalties regularly, while the online gaming industry association, Branschföreningen för Onlinespel, has criticized the regulatory structure for its lack of clarity. Perhaps due to this, both operators and market income have been negatively affected.
However, Strandänger and Medvall have not received as many inquiries as they anticipated.
“Sadly, the gambling industry hasn’t been actively seeking our assistance,” stated Medvall. “Some gaming firms, primarily the former [monopoly operators], are more inclined to continue their operations. But companies that didn’t obtain a license before the first of January this year now have the chance to reach out to us, and frankly, we don’t comprehend why they haven’t.”
“Do they believe that as a small enterprise, they can manage it independently?” Medvall questioned. “We’re uncertain what’s preventing them.”
Despite the slow adoption of Sweden’s new market by participants, external consultants specializing in corporate social responsibility have at least provided a fresh viewpoint on company strategy.
Raymond Bovero, also a responsible gaming advisor, counsels operators, primarily working with lottery operators in Europe and Africa. He spent 22 years at the French National Lottery (FDJ), including 13 years as head of the responsible gaming program, before starting his consulting work.
Bovero asserts he can identify details from an external viewpoint that operators might overlook in their daily routine. He employs the lottery as an illustration, highlighting potential conflicts of interest and proposing a more thorough examination of gambling within the nation.
“A European lottery organization, their marketing manager is also the responsible gambling manager,” Bovero clarifies. “I believe there might be a conflict of interest, even if it’s a small lottery organization.”
“I also suggest that they support a research project, what we French call a mécène (sponsorship agreement). You provide funding to an individual or a non-profit organization, but you have no authority to intervene in how they utilize your funds, thereby guaranteeing the autonomy of the recipient.”
“They don’t even know which population groups are participating in their games, or which population groups are susceptible to excessive gambling,” he adds. “Therefore, I recommend they finance an independent non-profit organization to investigate how many individuals are taking part in their games, and more importantly, how many are at risk of becoming compulsive gamblers, and who they are. In essence, I composed a report and presented 30-35 recommendations to them, encompassing aspects they should and shouldn’t undertake.”
Speaking candidly.
Bovero asserts that his impartial viewpoint enables him to advocate for transformation, whereas internal personnel, even if they are cognizant of the issues, might be apprehensive about raising them due to the fear of reprisal.
“As an advisor, I don’t fret about my recommendations not harmonizing with the lottery’s practices or ethos,” he stated. “I venture to encourage individuals to experiment with diverse approaches.”
Moreover, Bovero believes that his extensive industry experience working at FDJ has equipped him with the capacity to pinpoint potential shortcomings and discover the most effective methods to address them. He added that his background allows him to discern minor flaws that could have escalated into more significant problems in the past.
“My primary advantage is that I possess a profound comprehension and experience of various situations, having labored at FDJ, as a consultant, and as a former member of the WLA working group,” Bovero elucidated. “I have witnessed numerous distinct scenarios. Consequently, I am able to perceive matters from a wider perspective compared to those entrusted with day-to-day operations.”
Nevertheless, Strandäng and Medwall discovered that their experience at Svenska Spel, the Swedish lottery enterprise, did not necessarily translate into interest from operators. While those already deeply engaged in the Swedish market are familiar with the duo’s experience, they might not be recognized by newcomers.
“As advisors, we are well-known in Sweden because we have worked at Svenska Spel for numerous years, and all stakeholders here are acquainted with us,” she highlighted.
Its possible that some fresh operators aren’t familiar with us. Perhaps that’s the reason they’re not as enthusiastic, I’m not certain. We haven’t really promoted ourselves to them yet.
Even with a substantial number of customers, it’s challenging to gain an external viewpoint. Every customer is unique, but when business is thriving, it’s tempting to use the same strategy for everyone.
Bovero believes that years of collaborating with operators from diverse locations have taught him the significance of comprehending each customer’s requirements.
“You need to connect with people where they are,” he stated. “Clients from Africa and Eastern Europe are quite different. You can’t deliver the same message to everyone. Consultants should provide guidance that aligns with the client’s circumstances.”
He provided an illustration of a CEO who desired his business to attain a Level 4 Responsible Gambling certification. This involved gaining the support of everyone in the company, composing a report (often exceeding 100 pages), and undergoing a comprehensive audit by a specialized firm.
“He was at Level 2 and aimed to reach Level 4 within a year,” Bovero said. “I had to advise him, ‘Take it easy. When you implement something, evaluate its progress and determine if it’s effective.”
If your conduct conflicts with the prevailing customs, then you have no chance of being accepted.”
However, if an advisor’s opinions differ significantly from those of the organization, he may estrange the very individuals he is supposed to assist. How then can he approach a company that appears culturally resistant to accountable gaming? For Bovero, it may be a protracted process, but it all begins at the highest level.
“It can be very different from one operator to another, and it truly depends on the chief executive’s perspective,” Bovero explains. “When FDJ launched their accountable gambling program, when they appointed me head of it in 2005, the CEO said, ‘Raymond, don’t rush things, don’t go too far.'”
“I replied, ‘I’ll endeavor, but as you know, patience isn’t my forte.’ But ultimately, I was fortunate to work with this CEO for a decade, and when he departed, he thanked me for all the work I had done in promoting responsible gaming.
“When you initiate, it’s a cultural transformation. It can be challenging to get individuals to alter their way of thinking after ten, twenty, thirty years,” Bovero continues. “Try to persuade, not coerce, individuals. Then, once you have sufficient support, you can accelerate.”
In Medvall’s view, the concern about whether outsiders can comprehend a company may be one reason for Strandänger & Medvall’s lack of interest, but she believes there’s a larger factor at play.
Its possible that operators are apprehensive about consultants providing direction, but a majority of them believe they are already performing effectively, she stated.
**Toward a Future of Accountability**
While Bovero’s firm concentrates on transforming operator behavior, it might be even more crucial for Strandänger & Medvall. Bovero mentions that he primarily collaborates with lottery operators, and he frequently persuades doubtful clients by reminding them of the charitable causes lotteries support.
“I was facilitating a training session for the African Lottery Association, and one individual remarked, ‘Responsible gambling is a commendable concept, but what about earnings? I need to generate revenue.’ Naturally, if you prioritize responsible gambling excessively, it will negatively impact profits,” he explained. “I advised him to contemplate advantageous and disadvantageous wagers, and that lotteries are intended to assist individuals, and accepting bets from addicted players is a detrimental wager.”
Conversely, for Medvall, future leaders frequently have to report to investors, not the general public. This results in a scenario where social responsibility conflicts with business objectives, such as profit generation.
“Certain businesses with investors might be contemplating the equilibrium between responsible gambling and profits,” Medvall remarked.
Thus, maybe some of these businesses don’t meet the minimum criteria for accountable gaming.”
Consequently, Medwall indicated that the long-term financial success of accountable gaming is frequently the main factor in persuading potential customers.
“Some of them have started to understand that in Sweden, to make money, you have to follow the law,” Medwall stated. “But to be sustainable, you need to go further. You need to think long-term and how to do more.”
However, while this method might be the only way to convince many operators to consider accountable gaming, it results in what Boviero refers to as “the accountable gaming paradox.”
“If you do it sincerely, to actually do good, then your reputation will be enhanced,” Boviero said. “But if you do it just for your own reputation, people will know you don’t care about them, you only care about yourself, and that will be very detrimental to your reputation.”
For those insiders who genuinely care about accountable gaming, altering the current situation is still challenging if you lack the authority. In Boviero’s opinion, this is why change often can only come from external sources.
“Some individuals are afraid, and perhaps some don’t have enough hope,” he said. “They’ve been turned down so many times that they don’t want to try anymore, and they don’t want to hear rejection anymore.”
Consequently, the consultant’s duty could entail proposing concepts that no one inside the organization would dare to mention.”
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