Gambling VIP Schemes See Drastic Decline in the UK
The UK Gambling Commission has published a report on its recent research into high-value customer and VIP scheme monitoring, revealing that per-operator VIP and high-value customer schemes have decreased by 95% since the new code of conduct took effect in 2020.
LISTEN TO THIS ARTICLE:The code of conduct, introduced in consultation with the Betting and Gaming Council, requires gambling operators to implement stringent checks on players, including closely monitoring their betting behavior, before inviting them to join VIP schemes.
Additionally, operators were prohibited from including customers under 25 in VIP schemes or offering incentives based on player losses. It was also agreed that reward programs would be supervised by senior management.
According to the GC report, the number of high-value customers (HVCs) after the policy update has dropped drastically from 42,349 HVCs across 22 operators to 1,616 HVCs across 18 operators between April 2023 and March 2024. This data represents a 95% decline in the average number of HVCs and VIPs per operator from 1,924.95 players to 89.77 players.
However, the GC found that the percentage of operators with VIP schemes has stayed relatively consistent, with 60% of respondents having such schemes in 2024, up slightly from 55% in 2021, but down from 67% in 2020.
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Revenue from HVCs Plummets
The survey also shows a recent downward trend in gross gambling yield (GGY) from HVCs. According to data from eight operators, the GGY from high-value customers decreased by 51% in 2023-24, from £22.19 million to £10.88 million ($14.58 million).
The GC concluded in the report that there was no clear evidence of widespread consumer concerns related to high-value customer (HVC) or VIP schemes based on an analysis of casework and complaints data, as previously detailed. As such, “it is likely that the market for VIP or HVC schemes remains ‘depressed’ compared with the pre-policy situation.”
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