Balancing Player Stability, Responsible Gaming and Industry Growth

Since the repeal of PASPA in 2018, the landscape of sports betting in the US has undergone a significant transformation. What started as a handful of states entering legalized sport betting has now evolved into widespread adoption across dozens of states. However, with growth comes increased scrutiny, particularly in terms of player protections and responsible gaming practices.

Leading the way, New Jersey played a pivotal role in repealing PASPA and has since set the standard for regulatory requirements. As regulations continue to unfold, both operators and regulators understand the importance of integrating evolving gaming technology to maintain trust within the industry.

Focusing on ensuring sustainability and enhancing consumer protections, the challenge with technology now lies in achieving balance between ensuring player safety and keeping unnecessary friction that could hinder growth at a minimum.

Responsible gaming practices are now at the forefront — with operators taking proactive measures to protect at-risk players from financial and psychological harm by identifying and addressing unstable, erratic behaviors, loss chasing, time spent in-app and binge wagering, and monitoring account balances.

Build profiles of players and their wagering habits

It’s important to understand what’s driving behavior. Operators know when utilizing data — context is key. Players are very different from one another and should rarely be treated the same. That’s because while two players may display similar wagering behavior, their financial health could be worlds apart.

For example, a player may be designated VIP because of his or her in-app behavior, but enhanced financial diligence could uncover reasons (such as financial distress) for an at-risk designation. The same goes for a player who is designated at-risk. Enrichment data may reveal that he or she isn’t truly at risk and further investigation doesn’t need to be conducted manually, thus relieving the operator from having to deploy unnecessary resources.

Custom modeling quality starts with giving appropriate weight to specific data points and iterating based on measurements over time. First-party data combined with enhanced third-party data offers a unique opportunity for modeling to identify player stability and segment more appropriately.

Player Stability: How to support responsible gaming

The most efficient approaches to responsible gaming are increasingly proactive. Identifying distressed players faster and taking steps to mitigate actual harm instills confidence from lawmakers and players.  

Ultimately, both operators and regulators share the same goal: Strike the right balance between player safety and unnecessary friction.  As new regulations unfold, the industry understands that in this new phase of market maturity, responsible gaming technology is needed to ensure it continues to build trust with consumers.

To do that, identity data will be as crucial to risk identification in the US market as it has been in numerous other global markets. Operators can implement effective player protection measures without introducing undue friction. Leveraging regulator-trusted betting remains an enforceable and sustainable form of entertainment for all involved.

As the US Gaming industry continues to evolve, it’s crucial to prioritize player stability and responsible gaming practices to foster a safe and enjoyable environment for players.

How TransUnion can help

TransUnion Player Stability eScore™ is an affordability model designed to enhance responsible gaming and player experience functions. Its outputs include a score index based on weighed attributes that show the propensity of the individual to be suffering financial distress. Risk scoring can also be applied so operators can leverage the score as part of their responsible gaming, KYC and fraud strategies, and player experience. Scoring is generated for each individual player with configuration available at the state and product level.