How ESG is Rewriting the Rules of the Global Lottery Industry

ATLANTA – November 09, 2026 – The business of government-sponsored lotteries is undergoing a seismic shift. For decades, the primary metrics of success in the gaming technology sector were terminal uptime, ticket print volume, and gross gaming revenue. Today, a new set of criteria is dictating who wins the most lucrative contracts in the public sector: Environmental, Social, and Governance (ESG) performance.

The release of Scientific Games' 2025 Sustainability Report offers a compelling window into this transformation. As a dominant force providing retail and digital games, enterprise technology, and analytics to approximately 150 government-sponsored lottery customers across six continents, the Atlanta-based company's strategic pivot toward formalized corporate responsibility reflects a broader industry mandate. The report—covering operations through the 2025 calendar year—details aggressive waste diversion tactics, renewable energy adoptions, and extensive responsible gaming research. But beyond the philanthropic optics, these initiatives reveal how sustainability has become the ultimate competitive moat in B2B government procurement.

Winning the Contract: ESG as the New Procurement Battlefield

State lottery commissions are not traditional businesses; they are highly regulated government entities tasked with generating public funding for education, healthcare, and environmental protection. Consequently, they operate under intense legislative scrutiny. In recent years, public procurement officers have increasingly embedded ESG mandates into their Requests for Proposals (RFPs).

For vendors, this means that providing the fastest ticket scanner or the most robust data analytics platform is no longer sufficient. Companies must prove they are ethical stewards of the environment and public health. Demonstrating robust ESG practices serves as critical risk mitigation for state lotteries, signaling a vendor's stability and alignment with public values. When a state awards a multi-year, multi-million-dollar contract, the chosen partner's sustainability metrics become an extension of the state's own public policy goals.

By formalizing its ESG framework into five distinct pillars—Benefiting Communities, Empowering Employees & Partners, Expanding Responsible Gaming with Healthy Play, Minimizing Environmental Impacts, and Operating with Integrity—Scientific Games is directly addressing the evolving demands of organizations like the North American Association of State and Provincial Lotteries (NASPL). In the modern lottery industry, a comprehensive sustainability report is not just a public relations exercise; it is essential sales collateral.

Beyond Greenwashing: The Realities of Renewable Energy and Waste

With millions of physical scratch tickets printed and extensive retail terminal networks deployed globally, lottery infrastructure carries a substantial material and energy footprint. Addressing this reality requires more than superficial green initiatives.

In its 2025 report, the supplier highlights that its UK facilities in Leeds and Warrington have transitioned to 100% renewable electricity, backed by Renewable Energy Guarantees of Origin (REGO) certificates. While REGOs are a standard mechanism issued by the UK's energy regulator, Ofgem, to document renewable energy sourcing, they also invite scrutiny from environmental analysts regarding "additionality." Purchasing certificates proves the origin of the electricity but does not necessarily fund the construction of new renewable infrastructure like a direct Power Purchase Agreement (PPA) would. Nevertheless, it represents a critical step in reducing market-based Scope 2 emissions.

More tangible are the company's operational waste metrics. In 2025, the firm generated 12,200 metric tons of operational waste, successfully diverting or recovering energy from 91% of it. This aligns with the waste hierarchy guidelines promoted by the EPA and the UK Environment Agency, which prioritize reuse and recycling over disposal. A notable success in this area is a packaging reuse initiative at the Warrington site, which converted 60% of carton boxes received from manufacturing into reusable packaging for retailer deliveries. While the exact breakdown between physical recycling and thermal waste-to-energy recovery remains a nuanced point for supply chain managers to monitor, the sheer volume of diverted waste points to a maturing circular production model.

The organization's environmental efforts also intersect with local community impact. An award-winning urban farm at its Montréal campus produced approximately 15 tons of fresh fruits and vegetables in 2025, yielding more than 150,000 meals and 2,600 food baskets for vulnerable local residents. Similarly, the SG Tech Project launched at the Metro Atlanta headquarters refurbishes decommissioned electronic hardware for local schools, extending equipment life while actively reducing e-waste.

The Complexities of Vendor-Led Responsible Gaming Research

Perhaps the most scrutinized aspect of the gaming industry is its approach to problem gambling. The 2025 Sustainability Report highlights the completion of the company's fourth National Responsible Gaming Study, which surveyed a nationally representative sample of 3,405 U.S. adults, supplemented by focused research across nine states.

Andrew Jackson, VP of Corporate Responsibility, noted the strategic intent behind these efforts: "Our 2025 Sustainability Report reflects the practical steps we are taking to operate more responsibly and help our lottery partners do the same. From research that strengthens responsible gaming programs to investments in renewable electricity and more sustainable products, we are turning our commitments into action."

The data gathered feeds into the company's Healthy Play platform, designed to help lottery customers develop measurable, evidence-based strategies tailored to their specific communities. Additionally, the establishment of an internal Responsible Gaming Working Group aims to standardize these practices across global operations.

However, this vendor-led approach navigates a complex landscape. Public health advocates and organizations like the National Council on Problem Gambling (NCPG) frequently emphasize the necessity of independent, academically rigorous research free from industry influence. While the World Lottery Association (WLA) has certified the company as a Responsible Gaming supplier—a rigorous process requiring independent audits—the inherent tension between selling gaming products and researching their societal impacts remains. The industry's challenge is to ensure that vendor-funded studies maintain strict ethical guidelines and transparency, ultimately serving public health as effectively as they serve corporate compliance.

Benchmarking the Future of Lottery Operations

As the sector matures, the standards for corporate integrity continue to rise. In 2025, employees at the firm completed 14,416 hours of cybersecurity training, a critical metric in an era where state lotteries process billions of dollars in digital transactions and hold vast amounts of consumer data. This focus on data protection is a cornerstone of the company's "Operating with Integrity" pillar.

When benchmarked against primary competitors like IGT and Allwyn Entertainment, a clear industry consensus emerges: comprehensive ESG reporting guided by frameworks like the Global Reporting Initiative (GRI) and the Carbon Disclosure Project (CDP) is now mandatory for market leadership. The days of evaluating lottery technology providers solely on their hardware capabilities are over. Today, the future of the business belongs to those who can seamlessly integrate relentless innovation with an unwavering commitment to environmental stewardship and social responsibility.