Why VIP Programs Are Under Fire from Gambling Regulators

Whenever gambling jurisdiction take an aggressive stance towards VIP and Loyalty Programs, we find that many players do not understand their reasoning. Afterall on the surface Loyalty Programs are player-friendly way in which the casino can reward diligent customers for their time, attention and spend.

While this is true of people who work reputable online casinos there are those who skirt the fringes decency by twisting a system aimed at rewarding players for what they already do into a mechanism for manipulating players into spending more time and more money than they intended too in order to help these unscrupulous operators hit their profit margins.

Unfortunately, this is where the few rotten apples can spoil the fun for everyone as the programs of good willed and ill willed casinos function the same, it is how they sue them differs. This leaves regulators with only one option, shut them all down.

UKGC Under The Microscope

As a part of their dedication to reviewing and adjusting the Gambling Act the Gambling Commission has once again highlighted the danger that VIP schemes pose to at-risk players.

Specifically, since a major focal point of the regulator’s safer gambling initiative is to limit any outside influence that would cause players to spend more than they originally budgeted for or to spend more time than intended in the casino.

In support of the actions taken to mitigate this risk a Betting and Gaming Council spokesman said:

“The BGC, working with the Gambling Commission, has already taken tough action on VIP accounts, including the introduction of a strict new code of conduct which has seen the number of players enrolled reduced by 70 per cent.”

However, some ministers believe this is too little too late claiming that the decision to allow VIP schemes to continue in the face of evidence that they encourage problem gambling behaviours and can lead to debt in compulsive players is proof of a “close relationship between the industry and the Gambling Commission”.

This statement insinuates that the Gambling Commission is favouring the financial needs of the operator over the safety of the player.

 Is The Current Regulation Enough?

The concerns of the ministers is justifiable when considering the worst case scenarios. Those of us who have been in the industry for many years have seen how VIP hosts abuse the system to manipulate players into spending more money or accessing the casino daily as they know the chances of spending money is higher when faced with constant bonus offers.

Yet, as regulation has improved and safer gambling has become a daily discussion these underhanded practices are becoming the outlier, most likely to be found at unregulated casinos where there is no jurisdictional watchdog in oversight.

The following adjustments were made recently to address who can participate in a VIP program:

• The player must be able to prove that they are financially able to support being in a VIP program
• They must be older than 25 years of age to join the program
• They must receive special approval by senior administrators of the gambling site if under the age of 25

With these simple additions to the regulations guiding Loyalty program participation, it addresses the issue of financial risk and puts senior management in a position of being held accountable for gambling queries arising from younger players and the execution of their VIP initiatives.

While we applaud the Ministerial drive to protect the community at all costs there is a business behind the industry that must be allowed to generate the profits needed to remain interested in being licensed, or it runs the risk of encouraging a surge in black market operators.

The most ideal course of action would be to allow the existing regulations time to settle and allow the operators involved the space to find a balance between serving the players and serving its shareholders, all while adhering to attainable safer gambling standards.