Sustainability reporting has undergone significant change in recent years and the landscape is set to evolve again if proposed EU legislation is implemented.
Companies in the industry have long struggled with reputation and perception challenges that tend to be overshadowed by the responsible gambling debate.
In Europe, companies have spent years – and in many cases millions of euros – building systems, gathering data, and preparing for compliance with the EU’s Corporate Sustainability Reporting Directive (CSRD).
Investors everywhere have likewise invested heavily in data platforms and ESG analytics. Everything was on track for the scheduled reporting deadlines, until the rules themselves began to shift.
Under the EU’s Omnibus legislative proposals, announced at the end of November, the scope of mandatory CSRD reporting is set to be significantly reduced.
The draft changes would limit required reporting to large companies averaging at least 1,000 employees and meeting substantially higher financial thresholds than originally planned, potentially around €450 million in revenue or equivalent size criteria.
If adopted, these revisions would exempt many mid-sized igaming companies that were originally preparing for CSRD compliance. Importantly, these changes remain under negotiation and are not yet final EU law.
This mooted reduction has led some companies to assume their reporting burden will lighten dramatically. However, experienced operators and investors understand that sustainability expectations are not disappearing.
Many debt and equity investors – especially in Europe – continue to integrate sustainability data into cost-of-capital decisions, capital allocation models, and valuations.
Companies must still provide credible information to pass due-diligence reviews and remain competitive for financing. Employees and other stakeholders also increasingly expect responsible governance and attention to social and environmental impacts.
Historically, ESG ratings and data have been expensive: research suggests companies often spend hundreds of thousands annually on ESG assessments and ratings, despite widespread concerns about data quality and reliability. particularly due to self-reported inputs.
The positive development is that sustainability data is becoming more accessible and affordable than ever. Companies and investors can now reduce their spending while still maintaining transparent, investor-grade information.
This shift is one of the reasons Robert Montgomery and Steve Myers founded SustainabilityPlus, which Macquarie partners with. Rather than paying large sums for inconsistent datasets, companies can maintain a prevailing standards-aligned, publicly sourced sustainability dataset and rating customised to the needs of the regulated igaming industry.
Chad Beynon is Macquarie Capital’s US head of research and senior gaming, lodging and theatre analyst. He has followed the sector for over 20 years and collaborates with his global team of gaming analysts.
The post View from the City: igaming faces a shifting sustainability rulebook first appeared on EGR Intel.
As the EU moves to scale back mandatory sustainability reporting, many mid-sized gaming operators may find themselves exempt – but investors and stakeholders are still demanding credible data
The post View from the City: igaming faces a shifting sustainability rulebook first appeared on EGR Intel.