How a Ban on VIP Schemes in the UK Will Affect Players and Sites

The global pandemic pushed back proposed changes to gambling in the UK. 

One of the key objectives is to cut down on what the government has frequently referred to as “problem gambling” in the jurisdiction.

Among the many changes set to be introduced into UK gambling is cracking down on “white label” companies and the ban of betting firms advertising on team shirts.

However, one of the more interesting proposals is a complete overhaul of VIP schemes and other bonuses. 

Here’s what to expect from that ban and how it could affect players and betting firms in the United Kingdom.

In essence, these are bonuses, promotions, and perks that “reward” a player for regular use and loyalty.

Think of them as frequent flyer points for gamblers. 

Alongside providing cashback on losses, cash rewards, and points that can be exchanged for prizes, online gambling VIP schemes and rewards can benefit high rollers and those who prefer playing at particular sites.

In August, news of an unnamed source from the UK government claiming that the practice would be ended was widely circulated among reputable online publications. 

The source claimed that a complete ban on VIP systems would feature strongly in a government white paper set to outline changes to the Gambling Act of 2005. That document is set to be submitted to parliament by the end of 2021.

The UK Gambling Commission has previously tightened requirements for companies offering such perks. But it seems inevitable that those measures’ failure will lead to the death of VIP schemes in the region.

In 2020, Labour MP Carolyn Harris announced her intention to campaign for the most seismic changes to gambling in UK history.

The Chair of the All-Party Parliamentary Group for Gambling Related Harm (GRH APPG) had previously argued that VIP practices were a strong indication of the “close relationship between the industry and the Gambling Commission.”

PROBLEM GAMBLING: Our new @GRHAPPG report is calling for:

? A ban on TV and online gambling ads
❎ An end to VIP schemes
? £2 stake on online slots
? Independent affordability checks
?️ Controls on game design
? New ombudsman to resolve disputeshttps://t.co/F5VeHwm6un

— Carolyn Harris MP (@carolynharris24) June 16, 2020

If the practice is ended, which looks extremely likely to happen, players will no longer be entitled to particular perks.

These include, but are not limited to, the following.

If it’s not abundantly clear, companies offering the higher end of VIP schemes for UK gamblers will stand to lose a lot of their appeal with high-rollers and big gamblers.

A blanket ban on these schemes does appear to be a little unfair to those who benefit from them. But as there is seemingly no way to manage systems like these, changes are imminent.

Many players are tied to VIP schemes as they provide perks that they simply cannot get anywhere else.

If bettors lose these rewards, they will likely find fewer reasons to stay with certain online betting sites in the UK. 

The income for online gambling rose from £2.36bn in 2016 to £3.2bn in March 2020. But when fixed-odds betting terminals (FOBTs) were required to drop the minimum stake from £100 to £2 in the UK, gambling shares collapsed.

If the government’s white paper insists on widespread changes, including axing VIP schemes, some betting firms could stand to lose more than half of their income if parliament passes the bill.