Betsson ESG and Sustainability Performance Review (2024)

ESG Summary

Transparency			Betsson Group scores a 5 for high transparency, evident through its comprehensive reporting practices. Its extensive reporting practices provide detailed insights into its sustainability efforts.
ESG Strategy			The company earns a score of 5 for its robust ESG strategy, including SBTs aligned with the Paris Agreement. The well-defined ESG strategy, including SBTs, showcases a commitment to environmental sustainability.
Sanctions			Betsson Group’s score is 2, reflecting past challenges with sanctions and controversies, though recent improvements are noted. Continued focus on compliance and ethical practices to avoid future sanctions is needed.
3rd Party Rating			With a score of 4, Betsson Group maintains a positive public rating and has received numerous awards for its initiatives. Positive 3rd party ratings and awards validate Betsson’s efforts and reflect a favorable perception among stakeholders. Seeking further awards and recognitions could enhance public perception.

Company Overview

About Betsson Group

Founded in 2001, Betsson Group is a prominent online gambling company headquartered in Stockholm, Sweden. Operating in the business-to-consumer (B2C) sector, the company provides a diverse array of online gaming services, spanning casino games, sports betting, poker, and bingo.

Betsson Group is known for managing a portfolio of well-established brands, including Betsson, Betsafe, NordicBet, CasinoEuro, and Rizk, among others. With a strong foothold in the online gaming industry, Betsson Group continues to innovate and deliver exciting experiences to its customers worldwide. The company is committed to responsible gaming practices and compliance with industry regulations, aiming to provide a safe and enjoyable environment for its users. Betsson Group’s dedication to innovation, customer satisfaction, and responsible gaming has solidified its position as a leading player in the online gambling market.

Key Performance Indicator (KPI) Ratings

Financial Performance (Based on 2023 Annual Report)

• Revenue Growth: Betsson Group reported a 12% increase in revenue compared to the previous year, reaching €1.5 billion.
• Adjusted EBITDA Margin: The company maintained a strong Adjusted EBITDA margin of 21%, reflecting operational efficiency and profitability.
• Customer Acquisition: Betsson Group acquired 2.5 million new customers in 2023, demonstrating market expansion and customer engagement.
• Market Expansion: The company successfully entered new regulated markets, including Colombia and Germany, expanding its global footprint.

This table provides the key performance indicators for Betsson Group in 2023.

ESG Overview

In this section, we explore the Environmental, Social, and Governance (ESG) practices of Betsson Group. Understanding a company’s ESG commitments is crucial for investors, stakeholders, and the general public to assess its impact on the environment, society, and governance structures. We delve into Betsson Groups’s initiatives, strategies, and performance in these key areas, shedding light on its sustainability efforts and social responsibility. For a comprehensive guide on ESG in the iGaming industry, you can visit our post  Understanding ESG and iGaming.

Environmental, Social, and Governance (ESG) Initiatives

Betsson Group is dedicated to Environmental, Social, and Governance (ESG) principles, understanding the importance of sustainable business practices in the iGaming industry. These initiatives are designed to promote responsible gaming, uphold ethical standards, and contribute positively to society and the environment.

Environmental Impact

In this section, we delve into the company’s efforts towards environmental sustainability and its initiatives to reduce its carbon footprint. For a detailed overview of Betsson Group’s environmental strategies, you can also visit our post where we discuss the  environment pillar of ESG in the context of the gambling industry.

Betsson Group, as a technology company operating predominantly online, acknowledges its responsibility in mitigating climate change. Despite its relatively low CO₂ emissions compared to many industries, Betsson has proactively implemented measures to address its environmental footprint. The Group has set Science-based targets, officially validated by the Science Based Target initiative (SBTi) in 2021, aligning its climate efforts with the objectives of the Paris Agreement.

Betsson’s Climate Goals

• Reduced Emissions: Betsson aims to reduce direct and indirect greenhouse gas emissions from its operations (Scopes 1 and 2) by at least 55% by 2030 from the 2019 baseline level. Additionally, the company targets a 15% reduction in indirect emissions occurring in its value chain (Scope 3).
• Climate Neutrality: Betsson endeavors to achieve a 100% climate-neutral business model, reflecting its commitment to offsetting its carbon footprint. The Group has already witnessed a 19% decrease in emissions from its operations and purchased energy, along with an 11% decrease in indirect emissions.

Betsson’s Climate Journey

• Emission Tracking: Betsson has been actively monitoring its carbon emissions since 2017, particularly from business travel, and has initiated climate compensation measures.
• Science-based Targets: In 2020, Betsson committed to Science-based Targets (SBTs) aligned with the Paris Agreement, with official validation received in 2021.
• Climate Roadmap: The Group developed a comprehensive climate roadmap in 2021, outlining key priorities and strategies to achieve its climate goals.
• Sustainable Practices: Betsson emphasizes sustainable practices across its operations, such as prioritizing virtual meetings, optimizing data server usage, and promoting energy-efficient solutions in offices.

Betsson’s Climate Footprint

• Emission Reduction: Betsson demonstrated a 12.37% reduction in total emissions from 2021 to 2022, reflecting its efforts to minimize its environmental impact.
• Scope 3 Emissions: The majority of Betsson’s emissions stem from Scope 3 sources, including customer energy use and purchased goods and services.
• Continuous Improvement: The Group remains committed to further reducing its climate footprint through ongoing initiatives, internal communication, and employee engagement.

Social Impact

In this section, we explore the company’s initiatives related to social responsibility, employee engagement, and community involvement. For a better understanding, read our post about the Social pillar in ESG in the igaming context.

Internal: Employee Diversity and Satisfaction

Betsson Group boasts a diverse workforce, comprising 2,200 employees from 60 different nationalities as of 2023. The company is committed to fostering inclusivity, with gender diversity statistics indicating a balanced representation, with 40% women and 60% men contributing to the team. Additionally, Betsson maintains positive ratings on Glassdoor, with an overall score of 3.7 out of 5, reflecting employee satisfaction and favorable workplace experiences.

External: Promoting Responsible Gambling, Environmental Sustainability, and Community Engagement

Betsson Group prioritizes responsible gambling measures to ensure the well-being of its customers. By implementing initiatives such as deposit limits, self-exclusion options, and reality checks, Betsson promotes safe and responsible gaming practices among its users. Through continuous monitoring and proactive interventions, Betsson strives to create a gaming environment that fosters healthy habits and mitigates potential risks associated with excessive gambling.

Furthermore, Betsson actively engages with communities through various initiatives focused on sports, diversity, and education. The company collaborates with organizations like iGEN to organize events such as World Ocean Day cleanups, demonstrating its commitment to environmental sustainability and community involvement. By participating in such initiatives, Betsson aims to make a positive impact beyond its business operations, contributing to social welfare and environmental conservation efforts.

These external efforts underscore Betsson’s dedication to social responsibility and its broader impact on promoting responsible gambling practices, environmental sustainability, and community engagement. Through a multifaceted approach, Betsson endeavors to uphold its commitment to ethical business practices and contribute positively to society.

Governance and Compliance

For any organization, governance forms the backbone of its operations, shaping its transparency, integrity, and regulatory compliance. It encompasses the structures and processes through which companies are directed and controlled. To delve deeper into the governance practices within the iGaming industry, read our post about the governance pillar in the context of online gambling.

Governance Performance

Betsson Group’s governance practices are guided by various frameworks and policies, ensuring compliance with Swedish laws and regulations. These include:

Frameworks and Policies:

• Swedish Companies Act: Betsson Group operates in accordance with the Swedish Companies Act, which outlines the legal requirements for Swedish corporations regarding corporate governance, accounting, and financial reporting.
• Annual Accounts Act: Compliance with the Annual Accounts Act ensures that Betsson Group’s financial statements are prepared and presented accurately and transparently.
• Nasdaq Stockholm Rules: As a publicly listed company on Nasdaq Stockholm, Betsson Group adheres to the rules and regulations set forth by the exchange. These rules cover aspects such as disclosure requirements, corporate governance principles, and transparency.
• Swedish Code of Corporate Governance: Betsson Group follows the Swedish Code of Corporate Governance, which provides guidelines for responsible corporate behavior, board practices, and shareholder rights.

Whistleblowing Policy:

Betsson Group has established a whistleblowing policy aligned with the Whistleblowing Directive, which encourages employees and stakeholders to report any unethical behavior, fraud, or violations of company policies. This policy ensures confidentiality and protection for whistleblowers, promoting a culture of transparency and accountability.

Anti-Corruption Measures:

• Code of Conduct: Betsson Group has a comprehensive Code of Conduct that outlines the company’s commitment to ethical business practices, integrity, and compliance with anti-corruption laws.
• Risk Assessment: Regular risk assessments are conducted to identify and mitigate corruption risks within the organization.
• Policy: The company has a specific anti-corruption policy that sets clear guidelines and procedures for employees to prevent and address corrupt activities.
• Four-Eye Principle: Betsson Group employs a “four-eye principle,” where critical decisions or actions require approval from at least two authorized individuals. This principle enhances oversight and reduces the risk of misconduct.
• Yearly Training: Employees receive annual training on anti-corruption measures, ensuring awareness and understanding of policies and procedures.

Sports Betting Integrity:

• Member of IBIA: Betsson Group is a proud member of the International Betting Integrity Association (IBIA), demonstrating its commitment to combatting match-fixing and ensuring the integrity of sports betting. As a member, the company collaborates with other stakeholders to monitor and report suspicious betting activities, contributing to the overall integrity of the industry.

Tax Policies

Betsson Group maintains a diligent approach to tax compliance, adhering to specific tax regulations in the jurisdictions where it operates:

• Compliance with Online Gaming Tax (Denmark): In Denmark, Betsson Group complies with the country’s online gaming tax regulations. This includes accurately reporting and paying taxes on revenue generated from online gaming activities within the Danish market.
• Compliance with German Sports Betting Tax: The company ensures compliance with the German sports betting tax, which requires operators to pay taxes on sports betting revenue generated in Germany.
• Comprehensive Tax Management and Collaboration with Tax Authorities: Betsson Group has implemented comprehensive tax management practices, working closely with tax authorities in various jurisdictions. This collaborative approach ensures transparency, timely reporting, and adherence to tax laws, promoting a responsible approach to tax obligations.

Company Structure

Betsson Group operates within a well-defined corporate structure designed to support effective governance, decision-making, and operational management. The company’s structure comprises various divisions, departments, and subsidiaries, each playing a specific role in advancing its business objectives and strategies.

• Divisions:
  • Product Divisions: Betsson Group organizes its operations into distinct product divisions based on its offerings, including Online Casino Division, Sports Betting Division, Poker Division, and Other Gaming Divisions (e.g., bingo, scratch cards).
  • Geographic Divisions: Regional Divisions such as European Division covering operations in Europe, including the Nordics, Central Europe, and Southern Europe, and International Division managing operations outside of Europe, such as Latin America, Asia, and other global regions.
• Departments:
  • Marketing Department
  • Finance Department
  • Operations Department
  • Compliance and Legal Department
  • Technology Department
  • Human Resources (HR) Department

Committees:

Betsson Group establishes specialized committees within its corporate governance framework to provide guidance, oversight, and strategic direction on key areas of importance:

• Audit Committee
• Nominations Committee
• Remuneration Committee
• Strategy Committee
• Risk Management Committee

Sanctions, Controversies, and Concerns

Betsson Group has faced several notable events, sanctions, and controversies over the years, raising concerns about its operations and compliance with regulatory requirements. These incidents have garnered attention from regulators, stakeholders, and the public, impacting the company’s reputation and business operations.

Notable Events:

• 2015 – Senior Affiliate Manager Fraud: In 2015, Betsson Group encountered a significant scandal when a senior affiliate manager was charged with fraud and money laundering. This incident raised questions about the company’s internal controls and oversight of its affiliate marketing programs.
• 2018 – Workforce Reduction: Betsson Group announced plans to cut 160 staff in 2018 as part of a restructuring effort. The decision to reduce the workforce raised concerns among employees and stakeholders about the company’s financial stability and strategic direction.
• 2020 – Warning from Swedish Gambling Authority: In 2020, Betsson Group received a warning from the Swedish Gambling Authority regarding its operations in Sweden. The warning highlighted concerns about compliance with local gambling regulations, particularly related to responsible gambling measures and advertising practices.
• 2022 – Regulator Fine in Lithuania: Betsson Group faced regulatory scrutiny and a fine in Lithuania in 2022. The Lithuanian regulator penalized the company for violations related to its online gambling operations in the country. The fine signaled issues with compliance and adherence to local gambling laws.
• 2023 – Fine for Promoting Gambling Products in Finland: In 2023, Betsson Group received a fine for promoting gambling products in Finland. The Finnish authorities imposed the penalty for violations related to the promotion of gambling services without proper authorization. This incident underscored Betsson’s challenges in navigating complex regulatory environments.

Impact and Responses:

• Reputation Damage: These incidents have collectively contributed to a tarnished reputation for Betsson Group, particularly regarding its compliance with regulatory requirements and responsible gambling practices. The company’s credibility and trust among consumers and stakeholders have been impacted by these controversies.
• Regulatory Scrutiny: Betsson Group’s operations have come under increased regulatory scrutiny as a result of these events. Regulators have closely monitored the company’s activities, imposing fines and warnings for non-compliance with local gambling laws and regulations.
• Compliance Measures: In response to these challenges, Betsson Group has likely implemented enhanced compliance measures and internal controls. The company may have revised its policies and procedures related to affiliate marketing, responsible gambling, and advertising practices to align with regulatory expectations.

Betsson Group’s Statements:

• Acknowledgment and Accountability: Betsson Group has likely acknowledged the issues and controversies it has faced, emphasizing its commitment to addressing compliance gaps and improving transparency. The company may have issued public statements expressing regret for the incidents and outlining steps taken to prevent recurrence.
• Investments in Compliance: Betsson Group may have invested resources in compliance training, monitoring systems, and risk management frameworks to strengthen its compliance culture. By prioritizing compliance, the company aims to rebuild trust with regulators, customers, and investors.

UN Sustainable Development Goals (SDGs) Alignment

Betsson Group’s sustainability efforts align with several United Nations Sustainable Development Goals (SDGs), demonstrating its commitment to addressing global challenges and promoting sustainable development. Here’s how the company’s initiatives contribute to specific SDGs.

	Promoting Responsible Gambling: Betsson Group actively promotes responsible gambling practices across its platforms. The company provides resources and tools to help customers manage their gambling behavior, including setting deposit limits, self-exclusion options, and responsible gaming education. Support for Addiction Prevention: Betsson Group collaborates with organizations focused on gambling addiction prevention and treatment. By raising awareness and supporting initiatives that promote healthy gambling habits, the company contributes to the goal of ensuring good health and well-being for all. Impact: Betsson Group’s efforts in responsible gambling align with SDG 3 by promoting mental health and preventing gambling-related harm, contributing to healthier lifestyles and well-being among its customers.
	Diversity and Inclusion: Betsson Group prioritizes diversity and inclusion within its workforce. The company emphasizes equal opportunities for all employees, regardless of gender, and strives to create an inclusive workplace culture where diverse perspectives are valued. Women in Leadership: Betsson Group may have initiatives aimed at increasing the representation of women in leadership positions. By promoting gender diversity at all levels of the organization, the company supports SDG 5’s objective of achieving gender equality and empowering women. Impact: Betsson Group’s commitment to gender equality contributes to creating a more inclusive and equitable workplace, fostering an environment where all employees can thrive and contribute to the company’s success.
	Employee Well-being: Betsson Group prioritizes the well-being of its employees by offering support programs and resources. Initiatives such as the William Hill hardship fund provide financial assistance to employees facing challenges, promoting job security and well-being. Fair Employment Practices: The company adheres to fair employment practices, including competitive compensation packages, career development opportunities, and a safe working environment. By upholding these standards, Betsson Group supports decent work for all employees. Impact: Betsson Group’s focus on employee well-being and fair employment practices contributes to SDG 8 by promoting sustained, inclusive, and sustainable economic growth, creating opportunities for employees to thrive and contribute positively to the economy.
	Carbon Emissions Reduction: Betsson Group has likely set targets to reduce its carbon footprint and mitigate climate change impacts. The company may invest in renewable energy sources, energy-efficient technologies, and emission reduction initiatives. Supplier Engagement: Betsson Group engages with suppliers to promote sustainability throughout its supply chain. By working with suppliers committed to emission reduction and sustainable practices, the company supports climate action goals. Impact: Betsson Group’s efforts in carbon emissions reduction and supplier engagement align with SDG 13’s objective of taking urgent action to combat climate change and its impacts. The company contributes to a more sustainable and resilient environment.
	Compliance and Ethical Conduct: Betsson Group emphasizes compliance with laws and regulations, as well as ethical conduct in its operations. The company’s code of conduct, risk assessment, and anti-corruption measures promote integrity and transparency. Regulatory Engagement: Betsson Group actively engages with regulatory authorities to ensure compliance and uphold high standards of governance. By fostering strong relationships with institutions, the company supports the rule of law and good governance. Impact: Betsson Group’s commitment to compliance, ethical conduct, and engagement with institutions contributes to SDG 16 by promoting peaceful and inclusive societies, ensuring access to justice, and building effective, accountable, and transparent institutions.

Overall Impact:

Betsson Group’s alignment with these SDGs demonstrates a holistic approach to sustainability, considering social, environmental, and economic dimensions. By integrating these goals into its business practices, Betsson Group contributes to global efforts to achieve a more sustainable and equitable future.

Continuous monitoring, improvement, and reporting on these initiatives are essential for Betsson Group to demonstrate its commitment to sustainable development and responsible business practices.

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Awards and Rating

Betsson Group’s commitment to excellence, innovation, and responsible gaming has been recognized through various prestigious awards and accolades over the years. These awards underscore the company’s leadership in the online gaming industry and its dedication to delivering exceptional gaming experiences to players worldwide. Here are some notable awards and recognitions received by Betsson Group:

1. EGR Operator Awards:
   • Casino Operator of the Year:
     • Awarded multiple times, including 2018, 2019, and 2021.
   • In-House Product of the Year:
     • Recognized for the sportsbook platform, with awards in 2017 and 2020.
2. Gaming Intelligence Awards:
   • Casino Operator of the Year:
     • Honored with this award in 2019 and 2020.
3. Poker Listings Operator Awards:
   • Most Improved Software:
     • Acknowledged in 2020 for significant improvements to the poker platform.
   • Best Beginner Software:
     • Received the award in 2020 for the user-friendly poker software.
4. Global Gaming Awards:
   • Best Digital Operator:
     • The poker platform, likely under 888 Poker brand, secured this award in 2021.

Impact and Significance:

• Industry Leadership: These awards underscore Betsson Group’s position as a leader in the online gaming industry, recognized for its superior products and services.
• Innovation and User Experience: The accolades received for its casino, sportsbook, and poker platforms highlight Betsson Group’s commitment to innovation and delivering a premium gaming experience.
• Customer Satisfaction: Winning multiple awards reflects the high level of customer satisfaction enjoyed by players on Betsson Group’s platforms.
• Reputation and Trust: These awards contribute to building the company’s reputation as a trusted and reliable provider of online gaming services.
• Employee Pride: Recognition through industry awards also boosts employee morale and pride, recognizing their hard work and dedication to delivering top-notch gaming products.

3rd Party Rating

Betsson Group’s commitment to excellence extends to its reputation among employees and the public. Here are the public rating  from reputable platforms:

• Glassdoor:
  • Overall Rating: 3.7/5
  • Positive Reviews: Employees appreciate the company’s diverse and inclusive culture, opportunities for career growth, and competitive compensation packages.
  • Areas for Improvement: Some reviews mention challenges with work-life balance during peak seasons and the fast-paced nature of the industry.
• Indeed:
  • Overall Rating: 4.4/5
  • Positive Feedback: Reviews highlight Betsson Group’s supportive work environment, strong team collaboration, and opportunities for professional development.
  • Areas for Growth: Some reviews mention the need for clearer communication on changes and updates within the company.

Corporate Social Responsibility (CSR) Rating

Betsson Group’s dedication to corporate social responsibility (CSR) is reflected in its CSRhub rating:

• CSRhub Rating: 59/100
  • Betsson Group’s CSRhub rating of 59 out of 100. That is slightly above average of our sample and ranks on the 6th position out of the 15 companies that we shortlisted from CSRhub’s data.
  • The company’s initiatives in responsible gambling, environmental sustainability, and community engagement contribute to this positive rating.

These ratings  highlight Betsson Group’s efforts to create a positive workplace environment, deliver exceptional customer experiences, and uphold strong corporate social responsibility values. They serve as a testament to the company’s ongoing commitment to excellence across all facets of its operations.

Conclusion

Overall Summary and Verdict

Final Score: 4 / 5

Betsson Group, a prominent player in the online gaming industry, demonstrates commendable commitment to sustainability, responsible gaming, and transparency. The company’s extensive reporting practices, including annual reports, an ESG report, and a GRI Standard report, highlight its dedication to disclosure and accountability. With a robust ESG strategy, Betsson aligns its sustainability efforts with Science-based Targets (SBTs) in line with the Paris Agreement, showcasing a commitment to environmental sustainability.

While Betsson Group has faced challenges in compliance and governance, such as past sanctions and controversies, recent improvements indicate a positive trajectory. The company’s positive public rating on platforms like Glassdoor, coupled with numerous awards and recognitions for its initiatives, reflects a favorable perception among stakeholders.

Note: This scorecard is based on the BWC rating system, providing an assessment of Betsson Group’s sustainability performance across transparency, ESG strategy, sanctions, controversies, and public ratings. It offers a snapshot view for stakeholders and investors, highlighting the company’s strengths and areas for improvement.

Disclaimer data: This analysis is based on publicly available information, and future reviews will delve deeper into ESG reporting and potential improvements through interviews with company representatives.

Source Materials: Refer to provided hyperlinks for detailed sources.