ADR is about fairness, say gaming experts

Garance Limouzy November 13, 2024

SiGMA news

ADR is about fairness, say gaming experts

Disputes can be common and often complex in the world of online gaming. To address these, Alternative Dispute Resolution (ADR) mechanisms are increasingly being used to foster fairness between operators and players. Gambling industry experts discussed the importance of ADR at a panel at SiGMA Europe, highlighting the benefits and challenges this system offers in building trust, maintaining integrity, and upholding consumer rights.

ADR, a bridge for conflict resolution

ADR, or Alternative Dispute Resolution, acts as a pre-legal framework to manage conflicts between gambling operators and players. “What we’re talking about is a framework that protects players, and in some cases operators, to ensure that before reaching a serious legal dispute, there is an intermediary,” explained Oliver De Bono, CEO of Quantum Gaming. He explained that, contrary to some perceptions, ADR is not solely “there to work against” operators; it is also designed to protect them from the legal burdens of customer disputes.

Duncan Garvie, Head of ADR Services at CasinoReviews.com, echoed this view. “The gambling industry is unique because operators can deliver exactly what a player expects, and yet disputes can still arise,” he noted. The high rate of disputes in gambling is one reason why ADR is essential, allowing companies to resolve issues more efficiently without overwhelming court systems. “We need to build trust with players by facilitating an easier route to managing friction,” Garvie added.

Overall, ADR is about fairness. As Tania Pinho, Senior Associate at Lektou – Cortés, explained, ADR provides an avenue for small players, who may lack the financial means to take their cases to court, to receive fair treatment.

Fair play and predatory terms

Discussions around fairness in gambling often touch upon the concept of “predatory terms” — conditions that may appear unfair or one-sided. According to De Bono, operators must be cautious with terms that could harm their reputation. “When you’re building your brand, you need to keep in mind that players want to feel supported,” he said. This transparency is crucial in an industry where players are quick to feel “cheated” if they perceive terms as overly restrictive or unfair.

From the legal perspective, Marianna Tavella, Chief Legal Officer at SiGMA Group, highlighted the contractual complexity between operators and slot providers, which can complicate dispute resolution. “We often see cases where an operator bears the blame, even when a slot provider might be at fault,” she said, pointing to the need for clear indemnity clauses in contracts. “Contextualising conflicts and defining liability are essential steps in creating fairer contracts,” Tavella noted, adding that the ADR framework helps ensure that operators and providers are accountable.

Land-based vs. online disputes

Tania Pinho, Senior Associate at Lektou – Cortés, noted the differences in ADR approaches between land-based and online gambling. In physical casinos, ADR is less common, and players often lack clear frameworks for dispute resolution. “In land-based markets, there’s often no clear process for a customer to claim that they were treated unfairly,” Pinho said, contrasting this with online platforms that frequently offer ADR options as part of their regulatory compliance.?

ADR as an industry standard

Mex Emini, CTO at SiGMA Group, shared insights into the future of ADR, especially its potential in unregulated markets. “We’ve developed a platform where players can address their issues directly with operators, promoting a fairer environment,” Emini explained. For Emini, ADR is more than a service; it’s a way to strengthen the industry. “What we’re trying to do here is help fix the industry. Embracing ADR is how you build retention — by creating a win-win for both operators and players.”

Emini noted that while many markets lack formal ADR requirements, platforms have developed tools to manage complaints promptly. “In most cases, operators respond quickly, and most complaints are resolved in a timely manner,” he said, highlighting that ADR can resolve up to 90% of disputes efficiently.

“Regulated markets require adherence to consumer protection laws, contract laws, and experience-based laws,” Garvie said, pointing to the role of ADR in ensuring operators stay compliant. Ultimately, the consensus is clear: ADR is not just a tool for conflict resolution but a cornerstone of fairness in the gambling industry. As Garvie put it, “It’s about building a foundation where players feel heard and operators can operate transparently.” The continued adoption of ADR frameworks is likely to enhance trust and fairness in both online and land-based gambling environments, creating a more robust and reliable industry.