Operators escape VIP ban as Gambling Commission unveils new guidance
UK firms must comply with High Value Customer rules from 31 October after being handed “last chance” by regulator
The Gambling Commission (UKGC) has released new rules for UK-licensed operators to help clean up malpractice across consumer VIP schemes.
The regulator stopped short of banning the VIP concept, which allows operators to reward high-rolling customers with personalised bonuses and experiences.
The schemes have been widely criticised due to their prevalence in tragic and high-profile cases of gambling-related harm. They are designed to maintain or increase the custom of high-spend users.
The UKGC today published industry guidance on what it defines as High Value Customers (HVC), which licensed operators must now adopt from 31 October.
From that date, operators must establish that spending is affordable or sustainable as part of the customer’s leisure spend and assess whether there is evidence of gambling-related harm or heightened risks linked to vulnerability.
Operators must also obtain verified and up-to-date evidence relating to identity, occupation and source of funds, and continue to conduct ongoing gambling checks to spot signs of harm.
In addition, gambling firms must appoint a senior executive and personal management licence (PMLs) holder to oversee, and be personally accountable for, their respective VIP schemes.
The full guidance can be read here.
UKGC CEO 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.
McArthur said data garnered from UK operators suggested the number of customers signed up to VIP schemes had already decreased by 70% since an initial warning was issued last year.
In July, FTSE 100 operator GVC restructured its VIP teams in Gibraltar and Vienna on the expectation of wide-ranging regulatory changes.
McArthur said: “Whilst this 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,” he added.