Members of Parliament are expected to suspend the so-called “VIP schemes” offered by bookmakers to British gamblers after describing them as “immoral”.
According to reports, gambling operators have been using a strategy of assigning an individual to privately manage so-called VIP customers and providing them with a one-to-one service. This tactic has been blamed for fuelling compulsive gambling behaviour.
The discussions on the matter are part of the ongoing review of the UK gambling legislation that is carried out by the British Government. The review is set to be brought to an end later in 2021 and result in a White Paper.
A senior Government source close to the matter has shared that the Ministers’ plans for stricter measures on the practice have received Ministerial support. Previously, the UK Gambling Commission (UKGC) has tried to regulate the controversial VIP practices but the regulatory body has faced some criticism, as it has been blamed that it has not taken more restrictive measures.
For a few months, since October 2020, sports betting operators in the UK have been required to make special checks to make sure their customers are able to afford to lose some money while betting before they make a certain player a VIP customer.
UKGC Faces Criticism for Not Imposing Stricter Measures on VIP Schemes and Incentives Used by Bookmakers
The former Tory leader who has been one of the campaigners on the stricter measure issue, Sir Iain Duncan Smith, said for the Daily Mail that it was high time for the UK Government to make sure so-called VIP managers were suspended in the country. He described the practice as immoral, saying that bookmakers used it to abuse their customers by forcing them into debt.
Sir Iain Duncan Smith also criticised sports betting operators for offering their customers special incentives to encourage them to spend more and more money on their services. According to him, sportsbooks were deliberately driving gamblers to worse debt. He also does not believe that the VIP practice used by gambling companies has become better.
The decision of the UKGC not to suspend VIP schemes in 2020 when it unveiled some new rules or the UK gambling sector fuelled some criticism from some campaigners who blamed the regulatory body for its weak and vague regulation of the industry.
Previously, the largest sports betting operators in the UK, including Ladbrokes, Paddy Power and Betway, have faced massive financial penalties for targeting problem gamblers by using some “grooming” tactics and providing them with special incentives to encourage them to spend more on their services. Now, as a result of stricter measures imposed on the sector, senior sign-off and additional monitoring are required for individuals under the age of 25 who are willing to enter a VIP programme with a bookmaker.
However, the ongoing Government’s review of the gambling legislation review will take things further, with stricter measures to be imposed on the bookmakers who offer their services to local customers. As explained by a spokesman of the Department for Digital, Culture, Media and Sport (DCMS), the ongoing consultation on the Gambling Act was through in March, with some stricter measures being considered as a response to the provided evidence.
- Author
Daniel Williams
