Abstract

Sports betting has become a very profitable business of late. For instance, in 2020, it contributed 48% of Africa’s Gross Gaming Revenue (GGR), and the South African Bookmaking business was ranked ninth in the world for web traffic. The relevance of this scientific problem decision is that the industry is saturated with many betting companies. Companies that conduct business in the gambling industry in South Africa are obliged to provide a charitable contribution equal to a certain percentage of either their annual revenue or, more specifically, their after-tax net profit to be eligible for a gaming license. Before the company can be granted the license, it is necessary for them to make this contribution first. Under this legislation, operators are evaluated based on a variety of criteria, including ownership, management control, employment equity, skills development, preferential procurement, enterprise development, and socio-economic development. The B-BB-EE Act compels operators to be evaluated in line with these factors. Therefore, this study analyzed the impact of Corporate Social Investment on Customer loyalty in the Gaming Industry. This study adopted a descriptive, quantitative and cross-sectional approach. A nonprobability sampling technique known as convenience sampling was used to collect data from 150 customers who made sports bets. The Statistical Package for the Social Sciences (SPSS) was used to analyse the primary data, which included descriptive and inferential statistics, as well as correlation and regression analyses. The study’s findings show that Corporate Social Investment has a positive (= 0.746) and statistically significant (p. value<0.05) impact on customer loyalty. This study has contributed to the literature on Corporate Social Investment and customer loyalty in the Gaming industry, with specific reference to a developing country, South Africa. The recommendations provided as a result of the conducted research can be useful for managers of bookmaking companies to ensure the long-lasting impact of various initiatives in the field of corporate social investment on society, thereby creating goodwill that, in the long-run, contributes to customer loyalty.

Keywords: customer loyalty, corporate social investment, betting, South Africa.

JEL Classification: I3, M31, P36.

Cite as: Msosa, S.K. (2022). The Impact of Corporate Social Investment on Customer Loyalty in the Gaming Industry. Business Ethics and Leadership, 6(4), 38-48. https://doi.org/10.21272/bel.6(4).38-48.2022

This work is licensed under a Creative Commons Attribution 4.0 International License

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