FINTEL’s Expert Report: Sustainability and ESG Trends in iGaming

Responsible business conduct has become a structural factor shaping the licensed online gambling industry. A brand’s sustainability increasingly influences investment flows, regulatory confidence, and its own credibility. What was once treated as a supplementary reporting exercise is now embedded in how companies are assessed for long-term resilience and growth.

The SustainabilityPlus 2025 rankings from FiNTEL Sustain clearly highlight this transition. Even as formal disclosure obligations in Europe are being softened and delayed, expectations around transparency, accountability, and real-world performance continue to rise.

Regulatory Adjustments and Evolving Disclosure Expectations in Europe

The European Union’s Corporate Sustainability Reporting Directive was initially introduced as a far-reaching framework intended to standardise non-financial reporting across sectors. One of its defining elements was the concept of double materiality, which requires brands to assess both financial exposure to ESG risks and their broader societal and environmental footprint.

Industry feedback led to a recalibration of this approach. The recently announced simplification package significantly reduced the number of mandatory data points and postponed full implementation until 2028. For gaming operators and suppliers, this has eased the immediate reporting burden and provided greater flexibility in defining material priorities.

However, the regulatory shift does not imply a reduction in scrutiny. Instead, the emphasis has moved toward clarity, consistency, and decision-useful information. Markets are now less concerned with exhaustive disclosure and more focused on whether companies can demonstrate structured processes and credible outcomes.

Strategic Relevance for Regulated Gaming Operators

In a sector subject to constant political, social, and regulatory scrutiny, transparency remains closely linked to trust. Reducing disclosure or deprioritising responsible business practices risks sending negative signals to investors, lenders, and authorities.

Brands that scale back their sustainability efforts may face the following challenges:

• higher capital costs;
• decreased investor interest;
• more difficult acquisition or licence approval processes;
• weakened regulatory and community relations.

SustainabilityPlus analysis shows that organisations maintaining structured ESG frameworks are generally better positioned to manage these risks.

Sector Growth and Heightened Oversight

In 2025, the regulated gaming industry generated an estimated $540 billion in global revenue, driven by digital expansion, tourism-related activity, and the continued development of online platforms. With this scale comes heightened visibility and correspondingly higher expectations.

Several structural challenges remain relevant:

• gambling-related harm continues to affect a meaningful portion of users;
• deficiencies in anti-money laundering and governance controls still lead to significant financial penalties;
• reputational damage linked to compliance failures spreads quickly across markets.

As revenues grow, tolerance for weak control environments declines. Scale without demonstrable governance and social safeguards is increasingly perceived as a liability rather than a strength.

Sustainability as a Performance Driver

Recent market research from multiple industries suggests that responsible business practices can generate measurable financial benefits. In gaming, energy-efficiency initiatives and emissions reductions have already yielded tangible operational savings, while stronger governance frameworks are associated with lower enforcement risk.

Independent research published in 2025 found that firms recognised as ESG leaders achieved stronger long-term returns and showed greater resilience during periods of market volatility. SustainabilityPlus findings support this pattern, showing that higher-rated gaming projects tend to face fewer regulatory interventions and more stable brand perception.

Key Insights from the 2025 Rankings

A comparison of the results from the 2024 and 2025 SustainabilityPlus reports shows a moderate overall improvement in sector performance. Environmental indicators account for most of the progress, driven by reductions in energy consumption and emissions.

Advancements in social metrics, such as player protection measures and workforce policies, have been more incremental. This reflects the complexity of embedding effective systems rather than adopting isolated initiatives.

Top-ranked companies typically share several characteristics:

• clear emissions reduction strategies;
• increasing use of renewable energy;
• structured compliance and audit processes;
• demonstrable responsible gaming outcomes.

Notably, digital-first and publicly listed operators are increasingly represented among the leaders, highlighting a shift in how sustainability is embedded into newer business models.

Role of ESG Metrics in Funding Decisions

From an investment perspective, ESG performance has become an important proxy for long-term stability. Equity sponsors increasingly associate strong ESG indicators with regulatory resilience, sustainable brand value, and operational efficiency.

Debt providers and lenders, meanwhile, prioritise downside protection, favouring issuers whose records suggest reduced exposure to reputational and compliance risks. This dynamic is reflected in pricing advantages for sustainability-linked instruments and improved access to financing for high-performing operators.

Divergence Between the Regulated and Shadow Sectors

One of the most pronounced trends in the 2025 analysis is the widening gap between certified companies and those active in grey or illegal zones.

Licensed brands are increasingly expanding their ESG frameworks to include:

• black market displacement;
• data governance;
• community impact;
• long-term consumer protection.

By contrast, unregulated platforms often lack the transparency and controls required to demonstrate comparable risk management, limiting their appeal to institutional investors.

This divergence increasingly shapes market perception regardless of short-term financial outcomes.

Fragmented Standards and Transaction Risk

Despite regulatory simplification at the EU level, differences in reporting requirements across jurisdictions continue to complicate data collection and comparability. This segmentation creates challenges for investors and adds complexity to mergers and acquisitions.

Due diligence processes increasingly focus on:

• exposure to non-compliant sectors;
• historical regulatory issues;
• the maturity of internal sustainability systems within target organisations.

Recent strategic moves by major operators toward full ownership or public listings reflect an effort to gain greater control over these risks.

Practical Methods for Improving ESG Metrics

Simplified disclosure frameworks may provide a relative advantage to smaller and mid-tier casinos. With fewer mandatory data points, these firms can concentrate on material risks without building extensive compliance infrastructure.

Key priorities that improve a position in SustainabilityPlus rankings include:

• defining a clear ESG concept supported by consistent KPIs;
• providing measurable, responsible gambling data;
• outlining realistic energy and emissions pathways;
• clearly disclosing exposure to non-compliant markets and mitigation plans;
• linking sustainability actions to financial and business results.

When implemented consistently, this approach can strengthen investor confidence, reduce capital costs, and support future expansion.

The Main Things About Sustainable iGaming Growth

The 2025 SustainabilityPlus rankings offer a structured view of how gambling companies address environmental, social, and governance risks within an evolving regulatory landscape.

Key conclusions include:

• Licensed operators benefit from transparent processes and disciplined approaches to compliance and community impact.
• Simplified formal requirements do not diminish the importance of ESG, as stakeholders increasingly focus on outcomes rather than documentation.
• Environmental indicators show the fastest progress, while social and governance dimensions require longer-term system development.
• Consistent data management strengthens confidence among investors and lenders and reduces risk in mergers and acquisitions.
• Smaller and mid-sized companies can improve positioning by focusing on material indicators and linking ESG practices to operational outcomes.

In an industry where probability and risk management are core disciplines, consistent ESG execution is becoming a central element of strategic resilience rather than an optional add-on.