Elite membership programs and maintaining responsible betting practices
The VIP game strategy, which rewards big-time gamblers with perks, is a popular tactic to lure customers in the online gaming world. For players with deep pockets, involvement in these programs isn't necessarily risky - as confirmed by the UK Parliament. A study on gambling harms pointed out that high-stakes games are crucial when considering VIP schemes.
Conor Grant, ex-CEO of Flutter, expressed his thoughts on the topic:"I don't dig the term 'VIP'. That concept no longer exists in our company: we call them key accounts. The truth is there are people who can afford to shell out more on games. Just like any biz, these clients expect premium service. And we deliver."
VIP Accounts and Deposits
The UK Gambling Commission analyzed deposits made by high-value players at nine online operators. The comparison between VIP and regular clients' deposit volumes underlines the significance of VIP players:
Source: Gambling Commission.
The numbers may not fully represent the online gaming industry's overall landscape. However, the survey reveals that VIP clients make up a tiny fraction: in one operator, they constituted just 0.004% of the total users; none surpassed 5%. Yet, these 5% were responsible for 58% of Operator 3's deposits. In three operators, 3% of clients generated, respectively, 34%, 36%, and 48% of deposits; and Operator 4 saw 2% of players contribute an astounding 83% of their deposits. Among 47,000 online VIP players, 8% were classified as problem gamblers.
Industry Response
Analysts gathered opinions on VIP schemes from the five biggest operators' representatives, focusing on incentive usage - such as paying bonuses to attract clients or prompt larger bets. At the time, among these firms, William Hill had staff evaluated based on the revenue they generated, and GVC had VIP managers who received additional incentives. The Commission questioned if these incentives would inadvertently motivate employees to promote bigger bets, putting customer safety second.
As a response, in January 2020, several major UK operators established partnerships with the Gambling Commission, forming working groups aimed at speeding up measures to safeguard consumers from gambling-related harms. The groups consisted of top-level industry execs and concentrated on three core areas: VIP incentive use, safer online advertising, and responsible product design. Over 30 operators participated in the initiative under the Commission's guidance.
Making the VIP Scheme More Responsible
The Gambling Commission, together with industry reps, determined some safety standards for VIP rewards:
- Restrict participation to adults aged 25 or older;
- Carry out thorough and mandatory customer verification regarding financial stability and safe gaming practices;
- Keep audit records detailing players' decision-making, with oversight and accountability from upper management.
In addition, the Commission suggests a potential requirement for online operating licenses: prohibiting salary incentives or bonuses tied to the frequency, amount spent or lost, or profit generated by a particular client.
There's no denying that these clients remain crucial to the industry, contributing significantly to operators' deposits and profits. Yet, promoting excessive gambling might contradict responsible gaming principles. However, research like this enables operators to develop ethical motivational strategies that adhere to regulations.
This article was initially published in Russian on May 2, 2025.
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- Although Conor Grant, former CEO of Flutter, renamed VIP clients as 'key accounts', data from the UK Gambling Commission shows that VIP players significantly contribute to deposit volumes at online operators.
- High-stakes gamblers constitute a minuscule percentage of total users in the online gaming industry, yet generate a disproportionately large chunk of deposits - up to 83% in one operator.
- Amidst concerns about promoting excessive gambling, the Gambling Commission actively collaborates with operators to develop responsible VIP schemes, enforcing measures such as age restrictions, thorough customer verification, and audit trails.
- The Gambling Commission also suggests potentially prohibiting salary incentives or bonuses tied to a client's gambling habits under new requirements for operating licenses, in an effort to promote responsible gambling.
