Dramatic reduction in VIP schemes since 2020, Gambling Commission report finds

The number of VIP and high-value customer schemes has dropped by 95% on a per-operator basis after a new code of conduct was introduced in 2020.

The number of high-value customers (HVCs) or VIPs in Great Britain has dropped by 95% per operator, since the Gambling Commission (GC) strengthened restrictions on VIP schemes in 2020.

In October 2020, a new code of conduct came into force following a consultation process between the Gambling Commission and the Betting and Gaming Council, requiring operators to subject players to rigorous checks before signing up new VIPs, including having their betting behaviour being closely monitored.

Operators were also banned from incentivising customers based on losses, and reward programmes must be overseen by senior management. The code restricts any player under the age of 25 from taking part.

A vast difference

A report published by the GC on Thursday, based on a data request exercise, showed a total of 42,349 HVCs across 22 participating operators, prior to the change in policy. This dropped to 1,616 HVCs between April 2023 to March 2024 across 18 operators.

This signals a 95% drop in HVCs and VIPs per operator from 1,924.95 players to 89.77 players.

The GC noted there has been no significant change in the proportion of responding operators with VIP schemes in 2024. This was at 60% compared to 55% in 2021. In 2020 this figure was at 67%, prior to the regulatory changes that year.

There has also been a recent downward trend in gross gambling yield (GGY) from HVCs, although operators participating in the report did not provide information showing how the current data compared to GGY before the code came in.

GGY from VIPs down 51% in 2023-24

Eight operators provided GGY information for the last three reported years. The 2023-24 total was £10.88 million ($14.58 million), down 51% from the £22.19 million generated in 2022-23.

The data showed approximately 3% of overall GGY for the 12 operators was generated by VIP schemes.

The GC’s report read: “We found no clear evidence of widespread consumer concerns arising from HVC or VIP schemes from analysis of Gambling Commission casework, and complaints data as further explained previously.

“Overall, it is likely that the market for VIP or HVC schemes remains ‘depressed’ compared with the pre-policy situation.”

Tougher restrictions for VIP schemes are one of the measures mentioned in the UK government’s Gambling Act review white paper.