A Positive Spin on Ethical Marketing in The Gambling Industry

Playing, or gambling as one colloquially calls it, is probably as old as mankind itself. The beginning of gambling is dated by the researchers on approximately 3000 before Christ. In places where the Mesopotamia lived dices of bone and ivory were found. The ancient Romans already knew that games can become an addiction and have already destroyed one or the other living. The Roman historian Tacitus (ca. 58 - 120 A.D.) observed already at that time that the Teutons 'Strangely enough, the game of dice is a serious business, with such blind passion, when it comes to winning or losing, that after they have lost their belongings, they play with the last decisive throw for their freedom and their person”.

Even today, people all over the world play as if tomorrow the world will end. The Germans alone lost 14.8 billion US dollars in gambling in 2013 and were in 7th place at the time. The 'world champions' in losing were by far the Americans. They gambled away no less than 118 billion dollars.

One might wonder how all this information can now be put into context with our work. Now that we've come to terms with gambling, marketing and ethics, we want to show that something destructive can become something very positive.

As an example and as a possible goal we would like to use the online betting platform BWin, which was founded in Austria in 1997 and has since been integrated into GVC Holdings with its headquarter in Isle of Man.

If you take a closer look at the following graphic, you can see that gambling can be a very serious business.

Companies such as these are now listed on the stock exchange, are viewed with suspicious eyes and can never completely discard a certain bad image.

This may be due to the fact that bets on the outcome of a football match or other sporting events still have the reputation of being manipulatable. A bet at a horse race in Ascot, on the other hand, is socially tolerated. That at the bet acceptance counters of the oldest horse running course of Great Britain likewise fathers gambled away the money for the lunch of their children is in such an ambiance obviously secondary.

The main thing is that the hat fits well.

The way into professional sports is a very tough one. There are countless young people who dream of living a life like Ronaldo and Co. In big cities there are programs and clubs that run academies to train and educate the stars of tomorrow. The number of places in these institutions are highly coveted. The operation of such an institution is very cost-intensive and does not bring very much in a financial meaning. Therefore, football academies are very often forced to send away talents, because simply all (few) places are occupied. Since various young talent support programs very often suffer from chronic lack of money, we have considered how this problem can be met in the long run. Furthermore, we are of the opinion that our approach could increase the value and social acceptance of a company like BWin, because we turn losers into winners again- to a certain extent.

If you take a look at the BWin homepage, you can see that you can bet on many different sports. Conversely, this means that there are just as many possibilities to lose your money.

So let's say Mr. X is betting on the result of a football match. The bet is EUR 100,--. The teams are a very well-known team like Manchester United playing against an outsider. Let's say against FC MCI. The odds are 2:100, which means that if the Innsbruck team wins, the bettor wins 100 times his stake if he had bet on that team to win. So far so good. In this case, however, the English team will probably succeed, so this “Mr. Rossi” (http://www.zeichentrickserien.de/herr-rossi-sucht-das-glueck.htm ) has lost EUR 100. In addition to the financial damage, there may be the feeling of being a loser. In short - losing is not nice and usually has an unpleasant aftertaste.

And exactly at this point our idea comes into play. BWin has just taken EUR 100 which Mr X has lost. If the betting provider now takes a certain percentage of this sum, let's say 1% - in this case 1 EUR, and gives it to an institution dedicated to the promotion of young talents, suddenly something pleasant happens.

On the one hand Mr. X has the feeling that his loss at least to some extent can help someone else and on the other hand there would probably be more places where young talents could find a home to get closer to their dream of being a professional athlete in the future.

1% - That may not sound like much at first glance. But if you take a closer look at the graph on the first page, you will soon notice that the amount of money in the case of the Americans is quite a respectable sum. If all betting providers would take up our idea, in 2013 the fabulous sum of 1.119.000.000 US$ was invested in the promotion of young talents. That would be over 3 million US$ per day.

With this amount something could definitely be moved. A further benefit of this approach is that the companies that donate this money can deduct this amount from tax and thus also save money.

Also the image influencing factor should be considered here in any case. Such behaviour from the the big players in the betting business would be enormously effective in advertising and could also be used positively here. The difference total of the advertising budget reduced thereby could be likewise used for something which is ethical correct.

In conclusion, while the history of gambling reveals its long existence and the potential pitfalls associated with it, there exists an opportunity to transform the negative image of the industry. By integrating ethical considerations into the business model, exemplified through initiatives like redirecting a percentage of losses towards supporting youth sports academies, companies such as BWin can contribute positively to society. This innovative approach not only addresses financial concerns in talent development programs but also enhances the social responsibility of betting platforms. Embracing such ethical practices can potentially reshape the perception of the gambling industry and promote a more responsible and socially beneficial form of entertainment.