Gambling Commission issues final warning to industry over VIP schemes

Gambling operators have been told they are on their "last chance" after the industry regulator announced new stricter rules governing controversial VIP schemes.

The Gambling Commission said it had made addressing the programmes a priority after seeing "repeated instances of failure to protect high value customers".

However, the new measures are unlikely to satisfy critics of the schemes who claim they encourage vulnerable customers to gamble more than they can afford and have called on them to be banned.

Under VIP schemes, high value customers are given perks such as tailored bonuses, gifts, hospitality and preferential service.

From October 31, an operator making a customer a VIP will have to make affordability checks, assess evidence of any gambling-related harm and continue to have up-to-date evidence relating to identity, occupation and source of funds.

A senior executive will oversee each operator's scheme and will be personally accountable for them.

Gambling Commission chief executive Neil McArthur said: "We have introduced these new rules to stamp out malpractice in the management of VIP customers and to make gambling safer.

"Our enforcement work has identified too many cases of misconduct in the management of VIP schemes and this is the last chance for operators to show they can operate such schemes appropriately."

Measures introduced by the Betting and Gaming Council have reduced the number of customers signed up to VIP schemes by 70 per cent.

McArthur added: "Whilst that is a sign of the positive impact our innovative approach to collaborative working can have, these new rules are designed to ensure progress continues to be made to protect vulnerable customers.

"Operators can be in no doubt about our expectations. If significant improvements are not made, we will have no choice but to take further action and ban such schemes."

Michael Dugher: Industry 'committed' to driving up standards

BGC chief executive Michael Dugher said the standards body had already worked with the Gambling Commission to introduce measures regarding VIPs.

He added: "The code restricts anyone aged under 25 from taking part, while any customer considered for a VIP reward programme must first pass rigorous safer gambling checks and be subject to ongoing checks on their betting behaviour.

"Reward programmes must be overseen by senior management and conducted in a clear and transparent way to prevent any betting-related harm. Operators are also banned from incentivising customers based on losses.

"This is further evidence of our commitment to driving up standards within our industry."

The Gambling Commission added that it would be launching a consultation on customer interaction which will include affordability checks in the coming weeks, as well as responding to another consultation on safer online game design.

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