GVC Holdings (LON:GVC), a gambling company with FTSE 100 listed, announced on Thursday it will implement a “Sustainability Charter.” The group says, “The most sustainable business in the industry will be the most successful business in our industry.”
As part of this drive for conscientious gambling, the company has what it calls five cornerstones. The first of these is a “exclusive focus on regulated markets.” Currently, 96% of revenue comes from regulated or regulated markets nationwide. But by the end of 2023, we have promised that 100% of our revenue will come from regulated markets. This means “leave a market that currently has no viable path to regulation.”
The second cornerstone is to “lead responsible gambling.” For this reason, the company said it has launched a high level of responsibility and care program. It says it will not only actively carry out additional checks on customers, but also implement monitoring and intervention.
Third, GVC Holdings spoke about “incorporating responsible gambling into your reward.” In this, the company said it will incorporate responsible gambling metrics into the bonus terms for the entire annual group from 2021.
Fourth, the company has committed to “pursuing the highest standards of corporate governance.” The group says it has a corporate governance structure and policy that will set its position as an FTSE 100 company. It is still committed to increasing diversity in the organization, and will further change, “it will soon be done with board membership.”
Finally, we talked about “investment in our people and our community.” The company said it has a record of taking on and maintaining “the best people in our industry” and also serving the wider community that operates within it. GVC Holdings said Thursday that it was committed to donating £100 million over the next five years.
Commenting on the adjustment, a statement from GVC Holdings stated:
“Those new actions and initiatives are definitely the right things to do in the long run, but will inevitably cost you in the short term. The actions above will reduce EBITDA in 2021 by about £40 million, which will be offset by the fundamental growth of our business, as shown below.”
Company CEO Shay Segev added:
“Today is an exciting new chapter for this group and a key step forward in achieving our ambitions of being a global leader in sports betting and gaming. Under our new corporate identity, we will use our unique technology platform to build a very strong momentum in our existing markets, grow into new markets, reach new audiences, enhance the customer experience and provide industry-leading level of player protection.
We are absolutely committed to pursuing the highest standards of corporate governance, providing exceptional career development opportunities for our colleagues, and supporting the communities we operate. A clear strategy of prioritizing sustainability and growth will help you achieve these goals, thereby providing long-term value for all stakeholders. ”
Overall, today’s announcement represents a positive change in the group’s corporate culture, but there are further measures that can be implemented in the future. For example, the company can consider providing a significant contribution to gambling support organizations or committing funds to businesses, helping to offset carbon from their business.
However, reflecting the broader market demand for sustainable and conscientious businesses, GVC Holdings Sustainability Charter demonstrates the company’s intention to move with the times. Reflecting the costs of these new measures, the company saw its shares fall by around 2% on Thursday.
