Exclusive Membership Programs and Responsible Betting Practices
Cracking the Secret on iGaming's Allure: The Role of VIP Schemes
Craving some indulgence? Really big stakes players might just find themselves living the high life - thanks to VIP programs in the iGaming world. These special privileges are snared by those willing to lay down major bets, making them a prime draw for attracting big spenders. But let's clear up a thing or two about these VIP schemes before you start rubbing shoulders with the elite.
In a recent study by the UK Parliament, findings revealed that VIP programs paired with high-value games form a significant part of the iGaming industry's attractiveness. But is it always a winner-take-all situation when it comes to VIP programs? Analysts suggest that as long as they're implemented right, they can steer clear of causing harm.
Conor Grant, an ex-CEO of Flutter, neatly confirms this notion, stating, "I dislike the term 'VIP'. It's no longer used in our sector - we call them key accounts. Truth be told, there are people who can afford to gamble heavily. As any commercial enterprise, those key clients expect a premium service. We deliver it."
The Intertwined Relationship Between Deposits & VIP Players
Ever wonder who's really bankrolling the iGaming industry? The UK Betting Commission's study comparing the performance of nine online operators gives us some tantalizing hints. A quick glance at their data shows the crucial role that VIP clients play:
Source: Betting Commission
While the data isn't a sweeping representation of the online gaming world as a whole, it paints a vivid picture: a small proportion of VIP clients (ranging from 0.004% to 5%) contribute a hefty portion of the operator's deposits. For instance, in one case, just 0.004% of clients (likely a single-digit figure) accounted for a whopping 58% of the operator's deposits. Impressive, right?
But what about problem gamblers who might be taking advantage of these VIP schemes? That's a legitimate concern. In their sample of 47,000 VIP clients, around 8% were identified as problem gamblers.
Industry Reaction & Responsibility
Curious to know what major operators think about VIP programs? Analysts reached out to representatives of five leading iGaming brands for their thoughts on VIP rewards, incentives, and accountability. At the time, William Hill was clamping down on employees whose pay and bonuses were tied to client gambling behavior, and GVC had VIP managers with performance-linked incentives.
In response, several major UK operators formed working groups together with the Gaming Commission in January 2020, dedicated to bolstering consumer protection against gambling harms. These sector-internal teams focused on regulations for VIP incentives, safer online advertising, and product design. With over 30 operators participating under the Gaming Commission's coordination, it's clear the industry is taking the issue seriously.
Navigating the Road to Responsible VIP Programs
What does it take to operate a VIP program ethically and within regulatory guidelines? Representatives from the gaming industry and the Gaming Commission laid out some safety guidelines for VIP rewards:
- Limit VIP client's age to 25 years or older.
- Thoroughly verify VIP clients' background to gauge their spending habits and ensure safe gaming practices.
- Keep detailed records of player decision-making and maintain high-level management responsibility.
The Gaming Commission has also proposed that operators should not base staff salaries and bonuses on a client they've directly interacted with, the amount wagered or lost, or any gains made from that client.
So are VIP clients the lifeblood of the iGaming industry, or could they be fueling dangerous gambling habits? Well, they might be both, but new regulations and guidelines ensure the industry can strike a balance between encouraging players to play and promoting responsible gaming.
This post originally appeared in Russian on May 2, 2025.
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Additional insights:1. Fairness and Transparency: Casinos must ensure fair and transparent gaming products, including VIP programs and promotions. This involves clearly communicating terms and conditions to customers.2. Responsible Gambling: iGaming operators must take steps to prevent problem gambling across all customers, including VIP clients. Monitoring player behavior and intervening when necessary is key.3. Protection of Player Funds: Operators must separate player funds from business funds to ensure financial security in case of difficulties.4. Licensing and Compliance: Operators must adhere to terms of their UKGC license, including data protection, player safety, and anti-money laundering practices.5. Advertising and Promotions: All marketing and promotional activities, including those related to VIP programs, must comply with advertising standards and not mislead consumers.
- The study by the UK Parliament found that VIP programs paired with high-value games contribute significantly to the attractiveness of the iGaming industry, as a small proportion of VIP clients contribute hefty portions of the operator's deposits.
- In the iGaming industry, around 8% of VIP clients were identified as problem gamblers in a sample of 47,000 VIP clients.
- Major UK operators formed working groups together with the Gaming Commission in January 2020, dedicated to bolstering consumer protection against gambling harms and implementing measures like regulating VIP incentives, safer online advertising, and product design.
- To ensure ethical and responsible VIP programs, guidelines such as limiting VIP clients to those 25 years or older, thoroughly verifying clients' backgrounds, maintaining detailed records, and avoiding basing staff salaries and bonuses on a client's gambling behavior have been proposed by representatives from the gaming industry and the Gaming Commission.
