UKGC Warns Operators to Improve Interaction with VIP Customers

Following the reveal of confidential data illustrating the scale of VIP schemes, the United Kingdom Gambling Commission (UKGC) has warned the gambling operators in the UK to improve their interaction with big-spending customers.

The Commission collected the information through a Freedom of Information request and The Guardian newspaper obtained the said information. The information collected states that the membership programs reward gamblers who deposit large amounts of money with perks that include bonus bets, cashback, and prizes.

The UKGC collected the data from nine of the operators and one of the operators revealed that only 2% of its customers are listed as VIPs and that they account for 83% of deposits.

Moreover, the study by the UKGC shows that VIP gamblers are more prone to addiction than non-VIP players. Around 8% of the UK’s 47,000 VIPs are deemed as problem gamblers, which is more than 11 times the rate among the wider public.

The award of VIP status has been the cause of regulatory penalties issued to gambling operators by the regulator, in seven cases out of ten.

Call for Improvement

The officials from the UKGC say that operators are obligated to improve their interaction with VIP members and that they have challenged the industry to make faster progress to improve how they manage their customers.

The official statement from the UKGC said: “Operators must improve their interaction with VIPs and we have challenged the industry to make faster progress to improve how they manage their customers.

“We have also taken robust action against operators who fail to protect consumers and we will be even tougher if behavior does not change.”

In his statement regarding the matter, Marc Etches, GambleAware Chief Executive, said: “Gambling is a major public health issue. Keeping people safe from gambling harms starts with ensuring the risks of gambling are made clear. We encourage gambling companies to promote and inform all customers including VIP customers about the free help and advice that is available via the National Gambling Helpline and online at BeGambleAware.org.”

More About the Commission

The Commission was set up under the Gambling Act of 2005 in order to regulate gambling in Great Britain together with licensing authorities. It also regulates the National Lottery.

Additionally, it issues licenses for license holders, gambling premises and heavily promotes responsible gambling.

The Commission operates as an executive non-departmental public body of the Government of the United Kingdom. The main goal of the Commission is to keep crime away from gambling and to protect the end-users. They also consult the government on gambling-related issues.

Source:

“VIP schemes under fire following Gambling Commission report”, igamingbusiness.com, January 3, 2019.