VIP gamblers face affordability checks on their payslips or bank accounts
Gamblers who bet at least £500 a month will be asked to prove funds with payslips under a crackdown aimed at cleaning up “VIP customer” schemes.
Betting companies have been told by the industry watchdog that they must make sure VIP gamblers are spending no more than they can afford which would require “evidence” including up to date payslips or bank account statements.
The gambling commission warned that unless companies stopped exploiting such high-level customers who are offered bonuses, gifts, hospitality and special treatment to keep betting, VIP schemes would be banned.
Neil McArthur, Gambling Commission chief executive, said: "Our enforcement work has identified too many cases of misconduct in the management of VIP schemes and this is the last chance for operators to show they can operate such schemes appropriately.
"Operators can be in no doubt about our expectations. If significant improvements are not made, we will have no choice but to take further action and ban such schemes.”
Companies VIP schemes can require a minimum £500 to £1,000 a month deposit, which then entitles the member to rewards and benefits depending on how much they then bet. It could mean, for example, as much as £1,500 in matched bets in a month.
From October 31, operators must establish the spending is affordable and sustainable as part of the customer's leisure spending and have up-to-date information on the gambler's identity and source of funds.
Operators must also assess the risk of gambling-related harm or if there is a heightened risk because the gambler is vulnerable. They will also need to conduct ongoing gambling harm checks on each person to spot signs of harm.
Companies will also need to appoint a senior executive to personally be responsible for their scheme and its impact.
Mr McArthur said: "These new rules are part of the commission's comprehensive programme of tougher enforcement and compliance activity which has also seen the introduction of strengthened protections around online age and ID verification, improved customer interaction practices, and the banning of gambling on credit cards."
The commission is to consult shortly into improving ways of assessing if a gambler can afford their betting habit, identifying vulnerable gamblers and how to take early preventive action.
