Are UK gambling operators addicted to the free spending problem gamblers in their respective VIP programs? That’s the conclusion of a secret report by the UK Gambling Commission (UKGC) that was recently reported on by the Guardian Newspaper.
According to the Guardian, the UKGC recently took a deep look at VIP gamblers at a number of UK operators and didn’t particularly like what they found. In particular, regulators found that players in VIP programs were disproportionately made up problem gamblers. Furthermore, the report found that these VIP players themselves accounted for a disproportionate percentage of the total deposits made by players to their gaming account.
While the percentage of deposits made by VIP gamblers varied from operator to operator, the general trend was not a look that the regulators were impressed with. That impression was made worse by the extremes represented by a few operators including one that relied on just two percent of its players for 85 percent of its total deposits. (As our colleagues at CalvinAyre.com point out, however, deposits do not necessarily translate in losses – even with problem gamblers.)
Overall, the UKGC says there about 47,000 VIP gamblers in the UK and about eight percent of those folks also have a gambling problem. The Guardian says that’s about 11 times the national average, and they’re not impressed saying, “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 behaviour does not change.”
While there’s been no official word on what the report will actually mean for UK operators, it’s pretty safe to assume that they can expect serious scrutiny of their VIP programs in 2020.