Are Online Sports Betting Platforms Protecting Customers?: Privacy vs. Protection in Online Gambling
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Sports betting is now pervasive - tune into any game, no matter the sport or league, and you’ll be met with plenty of advertisements for the latest sports betting platform. Endorsed by high-powered celebrities and hall-of-famers, these abundant commercials make the platforms seem fun, engaging and lucrative.
Whether or not these ads are effective, or customers are being influenced by their friends winning a bet during a big game, people are buying into the hype. The American Gambling Association reports that the number of Americans engaging in sports betting has grown by 24 million since 2019. This growth is likely the fastest expansion of gambling in history.
Why is sports gambling growing at such a rapid rate? It’s not just the celebrities promoting these platforms on their screens, sports betting has now become easier than ever before. No longer tied to a physical location, customers can enter bets from the comfort of their own home. There are no limits to their interactions - everytime someone is watching a game they can pull out their phone and make a bet.
Beyond the ease of use, customers are also incentivized by the seemingly ‘free money’ many companies are offering upon entering their platforms. On one of the platforms new customers can access $1000 of game play by depositing as few as $5. With the feeling that users have nothing to lose and an abundance of ‘cash’ at their disposal, bets can seem harmless and fruitful. But, these quick wins can also spark problem behaviors and even prompt addiction down the line.
Preventing this is a critical initiative for sports gambling organizations today. Not only is this harmful for the customer but also the brand’s overall reputation. By contributing to devastating addiction and problematic behaviors, sports gambling platforms risk diminishing customer trust and prompting backlash.
These implications are why many leaders in the online gambling space are looking to come together to protect customers from harm. In March, seven of the largest U.S. legal mobile gaming companies made this a reality by launching an independent trade association to promote a new industry-wide best practices charter.
The Responsible Online Gaming Association (ROGA) is led by Dr. Jennifer Shatley, a responsible gaming executive who works closely with the treatment community, researchers and gaming industry representatives. She is currently the President for the Nevada Council on Problem Gambling.
Here we cover some of the implications this initiative may have on online gambling CX and discuss how customer protection collectives like this can inform the future of experiences.
The Problem with Consumer Protection
In a world of customer-centricity, customer protection seems like a given. Brands that are working toward a customer-centric strategy are focusing all of their efforts on the customer, taking a deeper look at their preferences, intentions and underlying needs to ensure they are delivering across the board.
But, what happens if a customer doesn’t know what’s good for them? What if their intention is not aligned with their protection? These lines can become very blurred, and overriding what a customer wants to protect their path forward is not an easy thing to do.
Jennifer Shatley, shared with CDC Gaming Reports, “Everyone wants the same goal,” she says. “It’s all about the well-being of the customer, it’s about the sustainability of the customer in the business. Our members understood the value of coming together collectively, to put forth best practices, to raise the standards not only for our members, but also across the industry.”
When thinking about consumer protection as a whole, most laws and initiatives are focused on businesses from using deceptive, fraudulent, or unfair practices. But, many of these areas still allow customers to ‘operate at their own risk’ when it comes to engaging with a product that could be harmful or addictive to some, but not to others.
According to the Fantasy Sports & Gaming Association, common features of a well-regulated sports betting market include: 1) Licensing and Registration of Sportsbook Operators, 2) Setting Age Minimums and Properly Identifying Customers 3) Problem Gambling Help.
All of these are critical, but they are fairly open-ended and reactive in terms of harm reduction. In the online gambling space, it seems that companies almost have to protect customers from themselves - which is no easy feat. But, having a plan in place to understand potential triggers, problematic behaviors and take action accordingly will ensure organizations are able to enhance protection moving forward.
Data and Customer Protection
To effectively protect customers, organizations must understand customer behavior and recognize patterns that can enable them to act proactively moving forward.
When leaders can pinpoint problematic behaviors, they can piece together an actionable strategy that prompts positive change. As companies are able to learn from these patterns of behavior, they can also work together to put a framework in place that prevents potentially harmful actions in the future.
This strategy requires access to customer data and a consistent focus on analytics and insights. By having direct access to customer behavior, organizations will be equipped to piece together customers’ unique journeys to understand the why behind their actions.
This is what ROGA is currently focused on. One of their key initiatives is to use research and insight to understand, outline and promote responsible gaming best practices. According to the Responsible Online Gaming Association, it will “encourage and advocate for the application of responsible gaming best practices that can be utilized across the industry.”
To further protect customers, the organization is working on establishing an independent data clearinghouse. In coordination with other members, the aim is to create a database to facilitate information sharing, allowing a mechanism for industry-wide protection of consumers.
According to CNBC, this marks the first time ever, the companies will share information about customers excluded because of problem gambling.
Privacy vs. Protection
What’s interesting from a CX perspective here is the idea of privacy vs. protection. When it comes to data, customers are aware that companies are collecting an abundance of information about them, but many are concerned about its usage. In fact, CCW Digital research confirmed that as few as 18% of customers stated that they were confident organizations will protect their data and use this information to contact them only when necessary.
With this sentiment in mind, ROGA’s intention to share excluded customer data may spark backlash from individuals who do not want their personal information being passed along. Although it is contributing to the safety of all customers, some may feel apprehensive about the process.
Additionally, while they are currently focused on excluded customers, this data sharing could set a precedent and lead to more changes in the data privacy structure later on.
Positioning this as a net-positive, however, can hopefully mitigate some of these potential discussions. Transparency in how data will be shared and what the goals are for the project will be critical for customers who may be mindful of safe data practices.
Outlining the parameters of the initiative and unpacking the benefits of potential outcomes should also help. If customers know that the goal is to understand precursors to addictive or harmful behaviors they may be more open. Specifically, if brands share the fact that this can help them improve protections against addiction and long-term destructive behaviors, it might enhance sentiment.
The Future of Protection for Customers
Navigating privacy vs. protection is difficult, but worthwhile. As mentioned, companies have a huge responsibility to not only deliver exceptional experiences in today’s innovative environment, but protect customers from harm.
Modern customers expect brands to do more for them - as they give them more insight about their preferences, behaviors and needs, they expect a level of care that goes beyond just the transaction. Protecting customers means being proactive when support is needed, taking steps to improve their relationships with your brand - or cutting ties altogether when their behaviors become destructive.
Spearheading initiatives that protect customers and continuing to learn and develop processes that support their experience will be critical as we move forward. CX leaders should take note of associations like ROGA and understand the implications of not just poor experiences, but poor protection efforts for customers across the board.
Widening the scope of what a ‘good experience’ looks like to encompass safety, protection and long-term success will be necessary for the future of support.
