Corporate Social Responsibility; iGaming Industry- Toronto Times

Based on the advanced prospect theory, this study argues that firms tend to overweight the positive tail of distribution hence in favor of positively skewed or lottery-like investments when facing low probability of large potential positive payoffs. Since corporate social responsibility (CSR) engagement puts greater emphasis on large potential (monetary and non-monetary) benefits, we hypothesize that CSR engagement is related to investors and local community gambling attitudes. Using a sample of 13,410 firm-year observations across 1,642 U.S. firms from 1996 to 2018, we find that firms with positive stock returns skewness tend to have greater CSR strength, which represents firms’ CSR engagements. Second, we find that local gambling attitudes, measured by the ratio of Catholics to Protestants adherences where firms’ headquarters are located, are positively related to CSR performance. Furthermore, local gambling attitudes are more positively related to institutional CSR than technical CSR. Our main results are robust after we control for potential endogeneity issue and under difference-in-difference analysis based on firms’ headquarters relocation.

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Gambling operators that are already controversial should focus on minimizing their inherent risks rather than engaging in charitable activities like community investment. By addressing these core issues and aligning with stakeholder expectations, gambling operators can significantly improve the industry’s reputation. They don’t just offer helplines and self-limit options; they also have solid principles and systems for responsible gaming. These companies educate us, their employees, and the public about preventing gambling problems.

Gambling stocks have often been regarded as ‘sin’ stocks, and some people refuse to work in a sector they feel does not match their values. For the National Corporation of Entrepreneurs of Gambling sector, Cornazar, Corporate Social Responsibility is a subject of great significance for the sector, for the State and for the Colombian society, which is the main beneficiary with the contributions that the sector returns to the State, through the high taxes. The consequences of non-compliance are severe, as demonstrated by the In Touch Games case. According to BettingLounge, the company faced significant fines from the UKGC for failings related to social responsibility and AML processes, and its gaming license was suspended, leading to financial difficulties and reputational damage. SMEs should allow players to set deposits, wagers, and time limits on their accounts, helping them control their gambling habits. Moreover, companies should offer self-exclusion programs that allow customers to voluntarily ban themselves from gambling activities for a specified period, with the option to extend the exclusion if needed.

Therefore, this study shows that gambling attitudes could promote firms’ CSR initiatives to meet broader stakeholders’ interests. Literature has shown that investors’ gambling preference can be captured based on their preference to invest in lottery-type stocks with positively skewed stock return volatility (Barberis and Huang 2008). Since CSR has become one of the most essential corporate decisions (Business RoundTable 2019; Harrison et al. 2020), naturally our study investigates whether gambling attitudes are related to firms’ CSR engagements. Using a sample of 13,410 firm-year observations across 1,642 U.S. firms from 1996 to 2018, we find that gambling attitudes from investors’ perspective, measured by stocks with positively skewed returns, are positively related to firms’ CSR performance. We find that firms with positively skewed stock returns tend to have more CSR strengths. We also find that local gambling attitudes where the firms’ headquarters are located, are positively related to firms’ CSR.

Also, it contributes to the community’s general well-being to make it a better place for its local occupants. Hereon, we will explore the ways through which the gambling business supports community development using CSR as a tool. Asia-Pacific holds the greatest market share (34%), but sports betting and online gambling are growing quickly in Europe and North America due to legalization and advancing technology.

BCLB’s Regulatory Role

• Barberis and Huang (2008) demonstrate that an agent puts a greater weight on the positive tail distribution of the value function by applying the transformed cumulative probability weighting.
• We conduct robustness tests by including corporate governance and using raw CSR scores (CSR) instead of adjusted CSR score (Adj. CSR).
• We control for corporate governance variables such as Board Size, Board Independence, Board Tenure, and Board Female.

The aim of this thesis is to evaluate critically the extent to which responsible gambling is possible in relation to the interests of society and gamblers themselves and an examination of the efficacy of responsible gambling features in the online environment. Gambling-harms have been studied by researchers from many different disciplines however few are situated from the perspective of business. There has been a dominance of quantitative gambling research but a lack of qualitative investigation into harms from the perspective of gamblers. This thesis seeks to address these issues using a pragmatic, mixed methods approach and presents empirical findings dra… Following Kumar et al. (2011; 2016), we also measure gambling attitudes from the local culture using geographic variation in religious composition of Catholics-to-Protestants ratio (CPR) using data from the ARDA. Most of Protestants oppose gambling because they perceive gambling as a sinful activity (Ozment 1991; Ellison and Nybroten 1999).

Since Barberis and Huang (2008)’s study, there is a growing literature that examines the relationship between firms’ investment behavior and firms with positively skewed stock returns. Schneider and Spalt (2016) demonstrate that the conglomerates tend to invest more in sectors with positively skewed returns. Chen et al. (2017) show that firms with positively skewed stock returns tend to conduct more frequent acquisitions and acquire the targets with more risky characteristics. Schneider and Spalt (2017) indicate that firms with more positively skewed stock returns are more likely to become targets for acquisitions.

A Vision for Sustainability in the Gaming Sector

A gamble takes a large chance of a small loss for a small chance of a large gain and therefore, the payoff is positively skewed (Barberis and Huang 2008; Kumar 2009; Markowitz 1952). Kumar (2009) also indicates that gambling attitude occurs when the reward to cost ratio is significantly large. The backlash against gambling operators is coming in fast from the public and the government, including some of the same state regulators who once supported the legalization of sports betting. Now Comes the Backlash.” it was cited that regulators are cracking down hard on the industry regarding advertising and player acquisition practices, citing harm to the public and even to athletes (which we’ve reported on extensively).

These initiatives include the provision of water tanks, school rehabilitation projects, and the payment of school fees for students in over 32 counties, with plans to expand to all 47 counties. He particularly acknowledged Dr. Makau’s efforts in promoting CSR activities that benefit the community, ensuring that the gaming industry operates responsibly. But there are common priority areas for gaming companies worldwide, some of which are outlined below. In this dimension, we summarize the contribution and the realization of adequate actions to preserve and improve the market in which the organization develops, the community that surrounds it and the resources it uses, where not only economic support is required, but also support with resources and time. Collaborating with charities, research institutions, and advocacy groups that work to prevent and treat problem gambling can help companies contribute to the development of effective solutions and support those affected by gambling-related harm. Gambling SMEs should also conduct regular internal and external audits of their compliance and AML processes to identify areas for improvement.

Ever roobet since the rapid growth of online gambling, gamers and game providers have been collectively working to focus on corporate social responsibility (CSR) in the industry. This chapter, which focuses on constructivist research and the next (which is concerned 2 with critical, postmodern and feminist methodology) are related to each other. Qualitative research, it will be shown, is the most appropriate 5 approach when one is studying human feelings, actions and values. This is needed because the methodology of constructivism is such a departure from the dominant way of conducting research. The section on the Philosophy of Science, although it may initially appear to be abstract and difficult for beginners, is in fact highly useful to the novice researcher.