VIP Schemes Remain Halted as UKGC Reports No Evidence of Return

VIP schemes for the high-rollers are looking like a thing of the past, according to figures produced by the UK Gambling Commission (UKGC). 

The regulator brought in changes around the schemes back in 2020 due to concerns around money laundering and safe gambling. Strict new guidelines have been introduced, with operators threatened with sanctions if malpractice is found to have occurred. Numbers have dropped considerably since the reforms and the regulator has revealed that it has found no evidence of a resurgence of the controversial schemes since its last evaluation back in 2021. At the time, scheme membership had dropped by 90% in around 12 months. 

David Taylor, Head of Evidence Assurance and Evaluation for the UKGC, said: “The headline findings are that these schemes are no more commonplace now than they were in 2021. The number of consumers in them has also remained consistent.”

As a contextual tidbit, both VIP and HVC schemes used to cause quite the stir in the gambling industry. Players enrolled in these schemes were seemingly showered with rewards, gifted with dedicated account managers, and more often than not, were encouraged to continue gambling with marginal oversight. This lack of surveillance led to some high-profile cases where vulnerable players were exploited, marking a period of immediate reform.

In a recent report, figures have shown that HVCs now account for roughly 3% of the total Gross Gambling Yield (GGY) across the cross-section of surveyed operators. Interestingly, these figures mostly came from land-based casinos, as opposed to online ones, where numbers were lower. The key reform that was implemented required a senior executive to be accountable for each new VIP scheme for each operator that employs it, whose job it is to ensure it’s always meeting regulatory standards. The Commission came out and said that this measure has indeed helped cut down on misuse, encouraging further transparency at all times.

“We also found that HVC schemes were less often assessed as being a contributory factor in issues under investigation within Commission casework,” Taylor added. It’s worth pointing out that this review was rather modest in size, only involving a small sample of operators. 

Taylor made a point in stressing that VIP schemes would stay firmly in focus during ongoing monitoring, which would, in turn, feed into the Gambling Act Review in the UK more broadly. He added: “Where operators fail to meet requirements, we will continue to take action.” For players in Ireland, this means a fair bit. Many of us still use UK-licensed sites, and the upcoming Irish Gambling Regulatory Authority is expected to take notes from UKGC best practices.