A group representing the largest U.S. sports betting operators released an updated list of guidelines Thursday for controversial VIP programs.
Among many standards, the Responsible Online Gaming Association said sportsbooks can't tempt VIP members on a cool-down period, self-excluded list, or have a suspended or banned account.
Key takeaways
- The new standards are aimed at ensuring VIP members' safety.
- The guidelines aim to educate, prepare, and keep customers aware of responsible gaming and their habits.
- Lawmakers proposed a variety of additional responsible gaming measures.
The Responsible Online Gaming Association (ROGA) represents platforms that, together, hold more than 90% of the American legal sports betting market share.
The group’s 11 new principles for VIP programs are as follows:
- Individualized training for VIP hosts
- Automated player reviews
- Escalation of problem gaming cases
- Adding responsible gaming to VIP communications
- Transparency between VIP hosts and members
- Restricting offers to individuals with temporarily or permanently locked accounts
- Sharing activity and other data trends with VIP members
- Required confirmation of tools and resources
- Responsible gaming education for VIPs
- Annual reviews of the VIP program
- Continued development of responsible gaming tools and measures
The new guidelines' purpose is to balance the rewards of being a VIP with the responsibility needed to uphold safe gaming behaviors.
“Like in many sectors of entertainment, leisure and hospitality, sportsbooks' VIP programs aim to reward and retain loyal players, and it is essential that these programs are operated with a strong commitment to responsible gaming,” ROGA Executive Director, Dr. Jennifer Shatley, said in a statement. “These programs should support a shared understanding between hosts and players on the value of responsible gaming that fosters long-term loyalty and player well-being.”
VIP program criticism
The widespread legalization of sports betting led to an increase in the number of VIP sportsbook members. These individuals can receive personalized promotions, higher wager limits, perks and rewards, and personal correspondence.
The primary concern with VIP programs is they entice customers to engage in unhealthy behaviors, flying in the face of responsible gaming efforts ROGA and other health groups have made.
Critics also question how sportsbooks can achieve their goal of keeping VIP customers hooked while universally imposing responsible gaming standards.
“There is a robust conversation ongoing regarding VIP programs, which is why we have prioritized this issue, as it is essential to provide research-driven guidance to adequately support these programs to help keep VIP players’ experience fun and recreational,” said Shatley.
FanDuel, one of eight sportsbook platforms ROGA represented, previously said its VIP hosts weren't compensated according to their customer retention rate.
Legal action follows responsible gaming failures
Several U.S. lawmakers were persistent in their motivation to clean up the gambling industry. Suggestions ranged from implementing a “blackout” period during the day when sportsbooks can't advertise on TV, removing acceptable language during promotions, and banning ads near college campuses.
A lawsuit five Pennsylvania men filed in April accused DraftKings of taking advantage of their gambling addiction. The men alleged the company used “deceptive” language to mask the restrictions and sell the upside of “no-sweat bets.”
The suit also said one individual was allowed to gamble despite registering on the state’s self-excluded program. DraftKings let another restore his DK account even after he self-excluded himself from the site.
