Anti-Gambling Advocates Raise Alarm over Potentially Harmful VIP Bonuses

The rapid expansion of sports betting in the United States has reignited concerns about VIP programs by gambling operators. These schemes give high-rolling gamblers exclusive perks like betting credits, gifts, and personal account hosts. Although companies claim these programs exist to reward customer loyalty, problem gambling campaigners argue they encourage risky betting patterns like chasing losses and excessive spending.

VIP Programs Incentivize Player Spending

A recent investigation by The Guardian delved into the darker side of gambling VIP programs. DraftKings, for example, recently made news due to a lawsuit alleging that the operator used underhanded marketing practices to prey on vulnerable individuals. Clara De Leon and Eric W. Mirsberger Jr. accused the operator of singling out customers showing addictive tendencies and enrolling them in VIP programs to maximize engagement.

High-profile operators often justify their VIP programs, comparing them to customer loyalty programs in other industries. They argue these initiatives do not fuel problem gambling but provide elite customer service to deserving customers. However, Cait Huble of the National Council on Problem Gambling (NCPG) notes that VIP hosts are motivated to keep high-stakes players gambling, conflicting with responsible gaming practices.

It definitely seems like there’s some encouragement around chasing losses, which is a huge factor of problematic play.

Cait Huble, NCPG director of communications

First-hand reports and internal job postings do little to contradict these statements. A DraftKings VIP host job posting outlined that employees were encouraged to exceed engagement and service level performance targets and reach out to individuals who have not gambled recently. While the company removed these descriptions after media inquiry, these postings paint a concerning picture.

Operators Face Increasing Pushback

Gambling companies face rising political scrutiny as calls for stricter regulations find increased support. Senator Richard Blumenthal (D-CT) has taken the lead in scrutinizing gambling companies’ marketing tactics, self-exclusion measures, and VIP programs. In March 2024, he sent letters to major operators demanding transparency about how they target high-spending customers.

Sports betting companies make a paltry pretense of stopping gambling addiction. They’re failing to address the national gambling addiction crisis because their profits take priority over people.

Senator Richard Blumenthal

The UK gambling industry already faced a crackdown on VIP schemes following a 2020 study that discovered that VIP players were disproportionately problem gamblers. The study concluded that while VIPs were a minority of consumers, they accounted for the lion’s share of deposits, up to 83% in some cases. However, the US gambling sector’s decentralized nature means reforms are up to the individual states.

While operators insist VIP programs are purely customer loyalty initiatives, opponents argue the financial incentives tell a different story. As legalized sports wagering continues to expand across the US, the debate surrounding VIP programs and problem gambling will likely intensify. With $150 billion wagered in 2024 alone, regulators must carefully balance stakeholder interests and consumer safety.