Three Lessons Highly Regulated Industries Can Learn from the Gambling Industry

Last year marked five years since the Supreme Court overturned the federal ban on sports betting, which paved the way for one of the fastest state-by-state expansions of any industry in recent U.S. history.

Now, sports betting is legal in more than 60% of the country, and the gambling industry is navigating its next chapter as its newest segment begins to mature.

Here are three communications lessons the gambling industry can teach other highly regulated industries:

1. Be front-footed about your industry’s vulnerabilities. Highly regulated industries have many target audiences, from policymakers and regulators to investors and consumers. These audiences have one thing in common: they prioritize trust and crave transparency. In late 2022, The New York Times published an investigative series that criticized the gambling industry’s involvement in the legalization of sports betting and cast doubt on how seriously the industry takes problem gambling. This wave of critical pieces from NYT and other national outlets unlocked fresh oversight from gambling regulators and calls for the gambling industry to tackle problem gambling head-on rather than avoiding discussing the realities of the disease. The gambling industry is becoming more vocal and proactive about problem gambling, which is building more trust with policymakers and regulators. The push-pull between distancing from a vulnerability vs. acknowledging it head-on is a delicate balance for a highly regulated industry but can often mean the difference between self-regulation and over-regulation.
2. Embrace technology to move the ball forward. Every industry should work to move the ball forward when it comes to protecting consumers, but it’s particularly true for highly regulated industries that interact closely with the public. At a recent gambling conference in Las Vegas, I heard from multiple panels how gambling companies are embracing technology to identify patterns in online gambling that detect and prevent problem gambling behavior. Other highly regulated industries can similarly embrace the current momentum behind new technologies like artificial intelligence to keep innovating and improving to advance new consumer protections and benefit all stakeholders.
3. Understand how your industry can contribute to the dialogue around mental health. Mental health is an issue that touches all industries and is becoming a more regular conversation topic in the workplace writ large. The gambling industry is beginning to explore the topic of problem gambling through the lens of mental health, which I recently explored in a column for CDC Gaming Reports. Highly regulated industries face more stringent standards across the board, which readily translates to the well-being of their employees and the customers they serve. Mental health will be a topic that defines the next few years, and there’s a clear opportunity for highly regulated industries to lead the way in owning it.

In this era of high regulation, it’s not just about navigating challenges. It’s about harnessing them for innovation, growth, and meaningful change.

Other sectors can draw on the gambling industry’s experiences to tackle regulatory challenges and simultaneously raise the bar for corporate responsibility and social impact.