Quo vadis, iGaming industry? Operators are navigating a rapidly evolving and ever-changing landscape. Market reports project that the iGaming sector will crack $107.70 billion by 2025¹. The market is getting more complex and hence it’s not just about attracting more and more players or offering bigger, better flashier games – consumer behavior is changing. Topics such as sustainability are becoming increasingly relevant and hence ESG in iGaming is more than a woke buzzword.
Brands like Beyond Meat, Allbirds, Oatly, and Apple – from food to fashion to tech, – demonstrate that Gen Z values sustainability and ethical practices. While percentages vary between studies², the message is clear: the majority of Gen Z shoppers prioritize sustainability when choosing brands. This shift represents both a challenge and an opportunity for iGaming operators. It’s a chance to stand out by aligning with eco-sustainable values.
But what does ESG mean specifically in iGaming? It’s more than a ruleset of environmental, social, and governance principles.
ESG in iGaming is about building trust, cutting costs, and shaping the future of the industry.
ESG in iGaming – Why it Matters
Across industries, sustainability is no longer optional or nice-to-have. It’s transforming markets, reshaping consumer behavior, and subsequently challenging business strategy. For an industry as large as iGaming, with a projected market volume of $107.70 billion by 2025¹, the shift toward sustainability isn’t just about staying relevant; it’s about mid- and long-term success and growth. Not sure where to start with ESG in iGaming? Our iESG Assessment gives you a tailored snapshot of your current standing—no strings attached.
For obvious reasons, the iGaming sector depends on massive data centers, servers, and global operations—all of which consume significant resources. ESG will inevitably play a key role in how the iGaming landscape is changing. The question is how to bridge the gap between resource usage and sustainability.
1. Reducing Environmental Impact
Data centers are the real power guzzlers—easily the most energy-intensive operations in the iGaming ecosystem. To put it into perspective, the average data center consumes as much energy as 25,000 households annually⁴ (Source: Green Data Hosting Trends 2024). Fortunately, the solution is both simple and cost-effective. Transitioning to renewable energy not only slashes emissions but also reduces operational costs over time. In fact, renewable-powered data centers have been shown to cut energy expenses by up to 30%⁴.
2. Meeting Player Expectations
Sustainability isn’t just a buzzword—it reflects a genuine shift in consumer behaviour preferences. Younger consumers, particularly Gen Z, increasingly prefer brands that align with their values across industries, and iGaming is no exception. According to the Deloitte Global 2023 Gen Z and Millennial Survey, 67% of Gen Z favor brands committed to sustainability². For iGaming operators, this presents not just a challenge but a golden opportunity to differentiate and connect with emerging player segments.
3. Leading the Industry
Implementing ESG practices saves money in the long run and attracts new customer segments but also offers additional advantages. It allows operators to lead rather than follow. How? With such a proactive approach a competitive edge is created: By attracting values-driven players as well as investors5 on one side. On the other by being ready to comply with potential future regulatory pressures without breaking a sweat.
The ESG in iGaming Framework
When it comes to integrating ESG in iGaming, one size doesn’t fit all. Tailoring these principles to the unique challenges and opportunities of the industry is key. Let’s call it iESG—a framework inspired by global sustainability efforts like the UN’s Sustainable Development Goals, but designed specifically for the dynamic world of iGaming. The concept may seem complex, but the good news is that many eco-sustainable initiatives are relatively easily implementable. Once established, these iESG practices not only cut operational costs but positions any venture as thought leaders and pioneers.
1. Environmental
- Green Hosting:
Data centers are power-hungry. In fact consuming as much energy as 25,000 households annually⁴ or requiring power capacities equivalent to over 400,000 electric vehicles⁵. The solution is simple: Transitioning to renewable energy-powered hosting providers, such as GreenGeeks or Microsoft Azure, offers a straightforward way to significantly cut emissions and operational costs. - Efficient Cooling Systems:
Cutting-edge cooling technologies, like liquid immersion, are finally becoming commercially viable and can reduce energy consumption by up to 15%⁹ (Sources: Microsoft, The Register). Although more cost-intense than conventional cooling, this technology offers significant advantages. Environmentally as well as financially in the long run.
- Carbon Offsetting:
Carbon offsetting does not directly reduce energy consumption. Yet it’s an initiative that complements other eco-sustainable measurements by addressing unavoidable emissions. It’s a wonderful platform to demonstrate a commitment to nature and ita preservation. Supporting reforestation projects or investing in renewable energy credits, drives a brand’s sustainability credentials.
2. Social
- Player Transparency:
The days when players only cared about freebies and promos are fading. A global shift in consumer preferences extends to iGaming as well. As discussed, this presents both a challenge and a golden opportunity. It’s imperative to communicate progress on sustainability initiatives clearly. Inform and involve players to ensure that they know: eco-sustainability isn’t just a buzzword but a genuine commitment. This transparency builds trust, enhances loyalty and attracts eco-conscious new players. And, it doesn’t stop there – it’s the right kind of positive publicity.
- Community Impact:
To get your eco-sustainable game in top gear, don’t stop at the platform. Supporting local environmental projects, be it rewilding efforts, conservation programs, or tree planting, truly amplifies your brand’s visibility. These ESG in iGaming initiatives create measurable results in terms of brand positioning and establish a thought leadership in an industry that often is challenged with a negative perception.
3. Governance
- Transparent Reporting:
Publishing annual progress reports about ESG in iGaming isn’t just about ticking boxes … it’s about telling your story. These reports should go beyond numbers, showcasing measurable results and sharing real-world impacts of your sustainability efforts. Highlight your reductions in emissions, energy savings, or community contributions. Needless to say – making these reports accessible to players, investors, and stakeholders, positively influences the brand and its public perception. - Certifications:
Certifications are more than just badges—they’re proof that any sustainability efforts are real and impactful. Globally recognized certifications such as ISO 14001 and LEED (Leadership in Energy and Environmental Design, for energy-efficient buildings) are validations for any eco-sustainable commitment on an international scale. For industry-specific benchmarks, our iESG certificate is tailored to iGaming and helps operators to stand out by aligning with the growing expectations of eco-conscious players and investors alike. - Why Governance Matters:
Effective governance and its external communication ensure that sustainability isn’t just a marketing campaign but part of the operational strategy. With clear reporting and globally recognized certifications, operators can build trust, gain a competitive edge, and set the standard for the industry.
ESG in iGaming how it Benefits Operators
1. Cost Savings
Energy-efficient hosting and cooling systems cut emissions and they save a significant amount of money. The transition to green technologies comes with a big financial impact – savings of up to 30% serve as an incentive too good to pass on. ³ (Source: Green Data Hosting Trends 2024).
2. Building Loyalty
Highlighting eco-friendly efforts can help attract and retain players who value sustainability. It’s not just about aligning with trends—it’s about establishing a meaningful connection to an ever-growing segment of customers (Sources: Simon-Kucher, Global Green Consumer Survey 2024).
3. Investor Confidence
The tide is changing and forward-thinking isn’t just a nice-to-have. Investors are prioritizing companies with strong ESG frameworks. A 2024 report by BDO⁸ (Source: BDO ESG Strategy for Gaming) shows that such businesses attract more funding and enjoy a stronger reputation in the market.
Conclusion
The iGaming industry stands at a crossroads. With a record projection of a market volume, come challenges and responsibilities in a market that is getting more complex. In that context sustainability isn’t just a buzzword in the iGaming microcosm. It’s a strategy for growth, sustainability, and long-term success, tapping into eco-conscious customer segments. Operators who want to secure long-term success have to act now. Any initial eco-sustainable efforts are mid-term remunerated with significantly lower operational costs as well as a stronger player connection and loyalty. Add on top, an incomparable good publicity that positively affects public perception and brand awareness. The question is no longer if ESG in iGaming matters … it’s how soon you’re ready to lead the way.
Learn more about ESG in iGaming
FAQ: ESG in iGaming
Q: What does ESG in iGaming stand for?
ESG is an acronym for Environmental, Social, and Governance. It’s about adopting sustainable practices, being socially responsible, and maintaining transparency in business operations.
Q: Does ESG matter in iGaming?
The implementation of ESG in iGaming practices reduce costs, attract eco-conscious players and future-proofs for any compliance with evolving regulations.
Q: How can operators start implementing ESG in iGaming?
Begin with renewable energy hosting, adopt efficient cooling systems, and make sustainability efforts visible.
Q: What’s the ROI on ESG in iGaming initiatives?
A: Savings of up to 30% on energy costs while gaining loyalty from eco-conscious players and investors.
Q: Are there certifications for ESG efforts?
Our iESG certificate validates sustainability practices and build credibility with stakeholders.
Sources
- Statista
https://www.statista.com/outlook/amo/online-gambling/worldwide - Simon-Kucher Global Sustainability Study 2024
URL: https://www.simon-kucher.com/en/insights/sustainabilitys-new-normal-what-2024-consumers-expect - Global Green Consumer Survey 2024
URL: https://wiser.eco/green-consumer-survey/ - Kindred ESG Report 2023
URL: https://www.kindredgroup.com/sustainability/ - Green Data Hosting Trends 2024
URL: https://kpmg.com/dp/en/home/insights/2024/01/going-green-data-centres.html - Investors Want to Hear from Companies About the Value of Sustainability
URL: https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/investors-want-to-hear-from-companies-about-the-value-of-sustainability - Statista – Data Center Power (Vehicles Comparison)
URL: https://www.statista.com/topics/13055/data-center-power/ - BDO ESG Strategy for Gaming
URL: https://www.bdo.com/insights/industries/gaming-leisure/gaming-companies-unlock-the-power-of-esg-strategy-and-investment - Liquid immersion
Microsoft URL: https://news.microsoft.com/source/features/innovation/datacenter-liquid-cooling/
The Register URL: https://www.theregister.com/2022/11/19/liquid_cooling_sc22/
