Gambling Commission activates consultation on VIP reform
Regulator launches two-month discussion on new measures ahead of mooted October roll-out
The Gambling Commission (UKGC) has launched its consultation into the way operators approach VIP programmes.
The consultation will discuss whether to implement seven new measures as proposed by a working group led by the Betting and Gaming Council (BGC) and GVC.
The measures, which were initially revealed in April, include requirements to undertake regular and ongoing assessments into customers before VIP incentives are granted. Assessments include affordability, safer gambling and enhanced due diligence checking of all players and potential high rollers.
Under the proposals, operators would be required to maintain full audit trails of all VIP-centric decisions and information collected, as well as appointing a senior executive to be accountable for the operation.
The proposed amendment to UKGC licensing codes of practice requiring operators to consult UKGC VIP guidance
Source: Gambling Commission
In line with previously communicated messaging, the UKGC has given its support to working group measures disincentivising operator VIP teams from receiving bonuses or additional remuneration based on customer loss/spend.
Measures to deny access to VIP schemes for individuals under 25, as well as imposing transparency and good practice requirements, have also been green-lit by the UKGC.
The regulator has confirmed operators will have a maximum of three months to conform to new measures, with progress being monitored through targeted compliance assessments.
“We will also explore what metrics can be collected to monitor the number of VIPs, their contribution to operator gross gambling yield (GGY) and how many customers are subject to and fail to meet the new due diligence criteria,” the UKGC said in its report.
The regulator has outlined two key regulatory challenges; firstly that VIP players are more “heavily engaged” and therefore at greater risk of gambling-related harm.
The second challenge is the “disproportionate financial value” of VIP players to licensees, which means regulatory compliance can conflict with commercial objectives.
“We are concerned that these regulatory challenges have not been consistently met by licensees. This has resulted in repeated instances of gambling-related harm and, in some cases, failure to prevent criminal proceeds being spent on gambling,” the UKGC said in the consultation document.
“Evidence from our compliance and enforcement work and the feedback we have collected from consumers suggests that existing regulatory requirements that cover all customers are not being tailored and applied effectively to VIPs,” the UKGC added.
The consultation on the new VIP measures ends on 14 August, with measures coming into force on 1 October.