Online gambling has produced some of the most profitable opportunities in the twenty-first century. A natural extension of the pre-existing gambling industry, which is worth over $240 billion in the United States alone, online gambling gives users quick and easy access to place a bet (Pierceall, 2014). Ladbrokes, 888, SkyBet, and Casumo are four of the companies trying to gain a significance presence in the online betting market; however, all are facing fines and public backlash after publishing advertisements that “targeted vulnerable individuals (Davies, Sweney, 2017).”

Generally, corporate executives have an obligation to “make as much money as possible while conforming to the basic rules of the society (Zimmerli, Richter, Holzinger, 2010).” By marketing to a demographic who are the most likely to gamble, each company is trying to maximize the return of their advertising campaigns. If the market research were to be ignored and the advertisements targeted to the general population, the campaigns would become more expensive and see less of a return relative to the amount of money spent. It is also important to recognize that society generally views gambling as a negative. If it truly was the responsibility of a gambling executive to exercise their societal conscious to prevent gambling, they would principally be required to either cease marketing or to shut down their company entirely.

Using stakeholder theory, the betting companies are creating value for employees, stakeholders, and suppliers through the increase in revenue; however, they are not creating value for the customers or the community (Freeman, 2009). These advertisements disproportionately impacted those are who in financial distress; people who are desperate to win money but instead will find themselves throwing away their final pennies (Davies, Sweney, 2017). The addictive nature of these games pushes individuals into a worse financial situation and even into bankruptcy.  The businesses are also harming the community by contradicting the numerous efforts made by governments to curb gambling, especially among high risk individuals. By using a advertisement that pulls pulls at one’s heartstrings, it makes it very difficult to weigh the practical harms of gambling against the chances of fixing all of one’s possible life problems. The companies are also under investigation for violations of the UK advertisement code, which disobeys a societal rule set up to protect the community (Davies, Sweney, 2017).

In running a gambling business, one needs to choose whether their social conscious or the wellbeing of the business is their top priority. The best customers of the gambling industry are the super rich and those who are in desperate need of quick cash; the latter being some of the most vulnerable in society. If all of the negative consequences that inevitably come with gambling can be ignored, then a healthy profit can be made.

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Citations:

Davies, R., & Sweney, M. (2017, September 13). Betting firms could be fined over ads ‘targeting vulnerable people’. Retrieved September 13, 2017, from https://www.theguardian.com/media/2017/sep/13/betting-firms-ads-asa-ladbrokes-888-skybet-casumo

Freeman, R. E. (2009, October 1). Retrieved September 13, 2017, from https://www.youtube.com/embed/bIRUaLcvPe8

Pierceall, K. (2014, September 30). The US Gambling Industry Is Worth $240 Billion. Retrieved September 13, 2017, from http://www.businessinsider.com/the-us-gambling-industry-is-worth-240-billion-2014-9

SkyBet [Digital image]. (n.d.). Retrieved September 13, 2017, from http://www.gamingintelligence.com/images/Logo_lg/SkyBet-lg.jpg

Zimmerli, W. C., Richter, K., & Holzinger, M. (2010). Corporate ethics and corporate governance. Berlin: Springer.