Community Responsibility in competition : a comparative study on the regulated and unregulated gaming market

Background Svenska Spel is a regulated company run by the state and government, where CSR, community and social responsibility is in focus. The highly regulated Swedish gaming market has in recent years become more exposed to competition by foreign unregulated betting companies thru Internet. Problem discussion There are two views regarding CSR and how they are affecting competitive advantage and profitability. On one hand, it suggests that companies foremost shall focus profits and act in the best interest of the shareholders. On the other hand, it connects CSR to be a contributor to competitive advantage that increases the company’s profitability. Problem formulation Svenska Spel is competing with other betting companies who doesn´t act under the same conditions, betting companies that don´t have a responsibility to the state. Svenska Spel has legal obligations to adopt CSR into their business. The other companies choose themselves how they want to act with CSR on the gaming market, they have greater opportunities to choose a strategy that they think is the best. Problem definition Which approach has the unregulated gaming companies on CSR compared with Svenska Spel and their social responsibility in the gaming market? Purpose The purpose of this paper is to compare Svenska Spel with unregulated gambling companies based on how they present and use CSR in the gaming market. Method The scientific method in this study adopted a qualitative, deductive approach with a descriptive touch. The study was based upon the theoretical concepts of CSR and competition, and applied to the empirical study, consisting of data from interviews and secondary sources. The empirical data were the basis for the authors' interpretations through the theoretical frame to complete analyzes and conclusions. Conclusion Svenska Spel´s CSR is deeply implemented in their business and strategies and is the basis for how they operate. The unregulated companies see CSR as a sideline with a relatively strong focus on player responsibility, which also is Svenska Spel´s most important part. Every company in this study upholds an 18-year-old limit for games and the biggest difference between Svenska Spel and the unregulated gaming companies is the player’s budget limit, at Svenska Spel it is mandatory to define your playing budget limit in order to access the games, at the unregulated companies it is optional