Gambling operators will have to guarantee that their high-roller customers are spending sustainably under new guidance that the UK Gambling Commission (UKGC) issued to clean up the existing malpractice of so-called “VIP schemes”.
The major regulatory body of the UK has introduced new guidance aimed at companies that had repeatedly failed to protect high-spending or high-value customers, who are also known as VIP customers. Such players are often offered various incentives such as bonuses, gifts, special treatment and hospitality in an effort to keep them gambling.
Now, following extensive consultation on the matter, the UK Gambling Commission has made a move that some see as the last chance for the gambling sector to make things right when it comes to so-called VIP schemes, as the country’s gambling watchdog is working to strengthen consumer protection.
The gambling regulatory body identifies VIP schemes in the sector as an area that should be subject to change, so it called for the companies operating in the industry to make sure they address the issue through a special industry code of conduct. As a result, all gambling operators that offer their services on the territory of the UK will have to follow the new guidance rules that focus on high-value customers.
Affordability and Sustainability of Gambling Customers’ Spending Will Be Checked as of October 31st
Under the new guidance issued by the UKGC, as of October 31st, all gambling operators would be required to check whether the customers’ spending is affordable and sustainable as part of the users’ leisure spending. Gambling companies will also be required to keep up-to-date data on each gambler’s identity, occupation and source of funds. The information provided to them by their customers will have to be verified regularly, with the companies also required to conduct gambling-harm checks on each customer individually.
The UK gambling regulatory body will also require operators to make an assessment of whether there is any evidence of gambling-related harm or signs of vulnerability that could lead to such harm.
Under the new guidance unveiled by the watchdog, companies that offer gambling services in the UK will have to appoint a senior executive, who holds a PML (personal management licence) and will have to oversee their respective scheme. This step would make individuals personally accountable for any violation of the rules.
As revealed by the Chief Executive Officer of the UKGC, Neil McArthur, the number of customers who are registered with VIP schemes, has already declined by 70% since the gambling regulatory body challenged the sector to make things right in 2019. The reduction is taken as a sign of the positive impact the Commission’s approach could have, and the new rules are designed to make sure such progress continued to be made by operators as part of their efforts to ensure protection against gambling-related harm for vulnerable customers.
- Author
Daniel Williams
