Kenny Alexander: Incentivised VIP management needs stamping out
GVC CEO would welcome VIP reform as part of the UK government’s gambling regulation review
GVC VIP managers are no longer financially incentivised after the strategy contributed to “systemic” failings in social responsibility at Ladbrokes, according to chief executive Kenny Alexander.
Speaking at a House of Lords gambling committee yesterday, Alexander said he could “pretty much guarantee” a Ladbrokes VIP manager was incentivised in a case where a player was allowed to gamble £3m without necessary intervention over player safety.
The case occurred during a period prior to 2017 in which GVC reached a £5.9m enforcement settlement back in July 2019, for historic social responsibility and AML failures in the Ladbrokes Coral business, which the UK Gambling Commission described as “systemic”.
“Going back to that case, one of the failings there would be – and I wasn’t in the business at the time but I can pretty much guarantee – that the VIP manager of that customer was incentivised,” said Alexander.
“No VIP manager now is incentivised. There were many failings around that incident and that was one of them.
“The procedures we have in place now is like comparing night and day. What happened to that customer was totally unacceptable, but I can absolutely guarantee that that could not happen today within GVC or Ladbrokes Coral,” he added.
GVC CEO Kenny Alexander
At the hearing, Flutter Entertainment confirmed it last year removed any link between renumeration and player spend, with employees now bonused on a player-protection metric.
Sky Betting & Gaming admitted the same, while William Hill chief executive Ulrik Bengtsson conceded that some employee performance was still measured with revenue targets.
Bet365’s John Coates said his firm “wouldn’t bonus in that way”.
The government has pledged to review the 2005 Gambling Act and update it for the digital age in a move which has seen top industry executives face questions from MPs and Lords this year.
When asked by yesterday’s panel which issues need addressing in any prospective gambling legislation, Alexander highlighted VIP management and too much TV advertising.
“An area which I think needs to be looked at is VIP programmes,” said Alexander. “Are we too aggressive and are they potentially encouraging the wrong type of behaviour?
“That needs to be looked at and is being looked at. There are also too many gambling adverts and too much noise in front of consumers in the UK at the moment,” he added.