The time has come to outlaw VIP schemes

The Gambling Commission’s changes to the way operators engage with high-value customers through VIP schemes do not significantly improve the protections provided to players and, ultimately, they must be banned outright if we are to ensure no player falls through the cracks.

The changes made to the rules just don’t go far enough and truly reputable operators should have been doing these things anyway. Indeed, those that are members of the Betting and Gaming Council (BGC) will have been doing them from November last year when the BGC rolled out its own code.

The fact the Gambling Commission’s requirements almost mirror those of the BGC should be cause for concern. The BGC’s code has been in place for almost a year and its members have yet to totally mitigate the risks posed to high-value customers.

I can understand the approach the Gambling Commission is taking. Abolishing something is rarely the best solution but in this case, I don’t see any other way of protecting players. For example, limiting VIP schemes to over 25s does little to protect those over the age of 25.

In fact, I have seen no evidence that someone under the age of 25 is more at risk of problem gambling or that those over the age of 25 are at less risk of problem gambling.

Of course, this is being combined with additional checks and balances, but it does not get away from the purpose of a VIP scheme which is to reward the biggest spenders for continuing to play and wager at a particular online casino site.

Even if it is determined that the player can afford to spend at the levels they are, this does not mean they are not suffering from a gambling problem or are in the grasps of addiction. Operators should be monitoring their levels of play, but if they already bet big, detecting a problem can be tough.

This is why I believe an outright ban is the only way of protecting high-value customers and is something I think operators and the wider industry must get behind. We have to ask ourselves whether we really want to be encouraging people to gamble, even if they can afford it.

Operators will undoubtedly argue that high-value customers are important for business and that if they are not allowed to reward them for their loyalty they will wager elsewhere and potentially turn to offshore brands that do not have to operate with the same restrictions.

But I do not believe this to be the case. The vast majority of players hold a UK Gambling Commission licence in high regard and put great value on the fact this means the casino is reputable and operating to the highest possible standards.

Good UX breeds loyalty

Online casino operators can also make sure players – even high-value players – remain loyal by offering them the best possible experience. And this should not be reliant on sending them gifts, offering crazy bonuses and increasing their deposit limits.

Instead, they should focus on other areas such as mass-market advertising, personalisation, innovation and delivering a superior experience across games, payments, security and customer support. If they do, players and high-value customers will not feel the need to wager anywhere else.

If you really think about it, gifting a high-value customer an Apple Watch is not the reason they continue to bet with that brand. The amount they wager, they could easily afford the Apple Watch out of their own pocket.

The real reason they wager with that brand is because of the experience they receive and if operators continue to focus on this, while also ensuring responsible gambling best practice, they will be able to retain high-value customers while ensuring they are properly protected.

And this absolutely can be achieved without the need for VIP schemes.

Joonas Karhu is the chief business officer at online casino comparison site Bojoko.com. He is an expert in regulated online gambling and regularly writes for industry press about a range of topics including responsible gambling, regulation and affiliation.