VIP programs are some of the most popular promotions at online casinos. Gamblers can access exclusive tournaments and receive benefits like a personal account manager. However, these programs have also led to an overreliance on VIP players, leading to an unsustainable model that can also be detrimental to a player’s mental health.

Many sites are moving away from these programs and looking for alternatives to sustainability and player rewards. Check out this article to learn more about these changes and how online casinos plan to overcome these issues. We will also discuss regulations introduced globally.

Overreliance on VIP Players

One of the issues regarding VIP programs is the excessive reliance on high-value players. In a study by Deng et al., of an online casino in Canada, it was discovered that the top 20% of users made up 92% of total bets. As such, many operators aim to keep these players engaged and continue playing.

However, this model is not sustainable as it heavily relies on these players remaining interested. They may be at risk of addiction, so it’s vital to ensure they gamble responsibly. Not to mention, if one of them quits playing, that can significantly affect the casino’s revenue.

That’s why many influential figures, like The Marcon CEO Peter Marcus, advise against relying on VIP players. He suggests that companies should focus on a business model that can retain a variety of customers and should avoid overexploiting their high-value ones. It will lead to more sustainable growth while remaining compliant with any laws.

New Regulations on VIP Programs

While operators are considering new ways to attract customers, many gambling authorities are also implementing new rules. For example, the UKGC established new guidelines in 2020 on VIP programs. The rules include several criteria that casinos have to assess, before offering a customer VIP programs. These include:

• Confirming that the customer’s spending habits are affordable and sustainable for them.
• Assessing whether the customer is at risk of addiction.
• Having valid and up-to-date information on the player’s identity.
• Frequently verifying their identity and monitoring for signs of harm.

Operators must also have senior executives with a personal management license to manage the VIP programs and ensure compliance. These measures came after an initiative in 2019 to better manage such programs, which resulted in 70% fewer VIP players. Senators in the US are also moving towards adopting laws to curb such programs.

Some of the UKGC’s other requirements include not incentivizing players to spend long hours playing or spending too much money. Operators should also carefully monitor their players to ensure their spending habits remain affordable and that they aren’t developing an addiction. Naturally, many online casinos have agreed to these terms.

Privacy Concerns

Many proposed solutions will require operators to monitor players and their activities constantly. Whenever irregularities are observed, the casino must send information on responsible gambling to players, provide access to safe gambling tools, and exclude players from a program if they ask. However, this will also require gathering significant personal information.

This information gathering is one of the challenges operators face when deciding on measures. According to a KPMG survey from 2023, 63% of respondents trust sites to treat them fairly and protect their data. However, concerns about data breaches can make it harder for companies to improve their programs and detect markers of harm. Some operators even argue the level of monitoring is becoming excessive and can lead to customers being dissatisfied with having to share more information.

In the future, casinos will have to improve their security further and be even more transparent about what information they gather. Some operators even work with companies like ClearStake that help them manage financial data more efficiently. Many online casinos are also considering using AI technology to better respond to customers.

Building a Better Base

Aside from better regulations, many casinos are also moving away from VIP programs and establishing a broader base. One way of accomplishing this is establishing a community. Some top operators have community chat functions or host slot tournaments. That allows players to interact with each other and play with friends.

Another solution is to rework the bonus system, making it suitable for all players. Some operators provide personalized offers depending on a player’s preferred games, while others have achievements and weekly challenges. Loyalty programs also provide points, which can be exchanged for prizes.

Improving the overall experience is also crucial to retaining players. Some sites focus on forming a better onboarding experience, with faster registration and tutorials on playing specific games. Customer support is also essential, as fast response times and detailed FAQs can help players resolve any issues.

Conclusion

While VIP programs can be a good way to reward players, they make operators financially dependent on just a few high-stakes customers. Online gaming regulations are also getting stricter globally, such as Sweden implementing a law in 2019 that bonuses cannot be worth more than 100 SEK. Meanwhile, Denmark requires operators to monitor players and prevent problem gamblers from accessing VIP programs.

That’s why building a sustainable player base that does not rely on a small subset of players is essential. That can be done by improving the bonus selection or overall experience through the user interface and customer support. We are excited to see how the industry will change, whatever the solution.