Lisa Sophie Dallos: “By taking RG seriously you can build a long-term relationship with your players”

Today we sit down and talk with Lisa Sophie Dallos, Funnz Operations Manager, with whom we discuss responsible gambling and how successfully the industry has been implementing it. Dallos is optimistic, and despite public perception, she has hands-on experience with operators in jurisdictions such as Macao and Curacao who have been taking their role as custodians of player safety and player well-being with the utmost seriousness.

The challenge that operators face today, though, could paint them in bad light. There is still a substantial number of operators who lack a complete understanding and expertise on how to use tools such as educational emails, responsible gambling initiatives, and interactions with their customers.

Dallos argues that it's in the company's best interest as, in her experience, casinos that foster a responsible gambling environment tend to be more profitable in the long-term, avoid costly compliance faux pas, and generally enjoy a strong reputation with audiences far and wide.

Q: Lisa, can we start by talking about the current responsible gambling landscape in license regimes upheld by jurisdictions such as Malta and Curacao, and whether operators are taking this seriously?

I’d like to start by saying that there are many operators in those jurisdictions who indeed make a great effort and are taking responsible gambling seriously, even though the public perception is often different. Obviously, there are also operators who don't take much interest in enhancing their responsible gaming policies, which, unfortunately, seem to attract more public attention.

Q: Much of casino profits are attributable to fewer players who tend to lose a lot. If we were to look at the industry in a slightly cynical way, does it pay off for operators to proactively instil responsible gambling awareness in their players?

Absolutely. From a purely cynical perspective, responsible gaming initiatives might seem counterintuitive. However, there are several reasons why casinos should and do invest in them.

Obviously, one big reason is regulation and reputation. Gambling regulations are becoming stricter, and failing to comply with responsible gambling practices can lead to fines or even license revocation. But let's dig a bit deeper. Even in jurisdictions with lenient regulations, there are great benefits to promoting responsible gambling to your customers.

My studies on player behavior at casinos I've worked with showed very clearly that responsible gambling interactions and the use of tools (like limits or short-term breaks) had a significant and positive impact on player retention rates.

By taking responsible gambling seriously, you can build a trustworthy long-term relationship with your players, which has also been shown to have a positive effect on employee retention. In the long run, a sustainable player base will be far more profitable for a casino than short-term gain and the constant need to acquire new players.

Q: What have you observed are the impact of responsible gambling initiatives ushered in by operators and shared with their player bases?

Certainly, responsible gambling initiatives positively impact sustainability and retention. In 2020, I observed the following:

A trial was conducted with 1,000 players. Half received an educational email about responsible gaming, while the other half (the control group) did not. After 3 months, we observed a 30% higher retention rate in the segment that received the email.

Additionally, players who received the email information had a lower RG risk level compared to the control group, based on the operator's RG risk scoring tool. Interestingly, players who received the email set fewer limits than those who didn't.

This was just an email, and while responsible gambling emails are important and influential, onsite and real-time notifications and interactions are the most powerful tools in my observation. Furthermore, we observed that players who set up limits generally stay active for a longer period and are less likely to close their accounts.

Q: Do self-service tools actually make an impact on a player’s well-being? For example, are self-exclusion tools provided by casinos, or betting limits an effective way to curb excessive spending and promote a better relationship between casino and player?

The most important factor, in my experience, is educating players about self-service tools, but "we" need to shift our perspective on those. It's more effective to think of them like seatbelts in a car. We don't put on seatbelts only when we're about to crash; we use them from the start of the journey.

Similarly, educating players about using RG tools, specifically limits and short breaks, can significantly help prevent excessive spending. Surveys show that players appreciate the availability of self-service RG tools, as it fosters trust in the casino even if they don't use them.

Q: What are the biggest challenges yet for operators to actually adopt responsible gambling more seriously – is it a fear for tanking their bottom lines, lack of expertise, or a mix of factors?

In my experience, the root cause is a lack of understanding. When I started in the iGaming industry, responsible gambling wasn't a major focus. While certain tools were offered, I believe they were often misused. For example, if a player mentioned playing too much, a casino might implement a limit or self-exclusion on them, thinking their job was done. There was a lack of effort to fully understand the player's situation.

Fortunately, there are many excellent studies available now. We can use them to educate ourselves on responsible gambling first, and then educate the players. By teaching our players how to play responsibly and use the tools we provide from the very beginning, we can ensure gambling remains safe and enjoyable, rather than leading to problems. I believe this should be a joint effort by all of us in the industry!

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