UK Gambling Commission updates findings on high-value customer schemes
The 2024 review shows stable participation in HVC schemes since the 2021 reforms, with ongoing regulatory oversight.
Key points:
– HVC participation dropped sharply after the 2020 reforms and remains steady.
– HVC schemes account for about 3% of gross gambling yield, higher in land-based casinos.
– Senior executives now oversee all active HVC schemes to ensure compliance.
The UK Gambling Commission has published new findings on high-value customer (HVC) schemes, highlighting ongoing risks to player protection despite regulatory efforts and policy changes.
The regulator first raised concerns in 2020 over the way HVC or VIP customers were managed and incentivised, citing elevated risks of gambling harm and potential misuse of criminal funds. This led to the introduction of stricter controls on how these schemes operate. Initial data from 2021 indicated a sharp decline in HVC participation, up to 90%.
The Commission has now released updated monitoring results assessing the longer-term impact of those reforms based on 2024 data. Since the process in 2021 was similar, the results can be considered comparable.
The Commission’s latest review found that the prevalence of high-value customer schemes has remained largely unchanged since 2021, when new rules were introduced to reduce risks linked to VIP programs. The number of participants has stayed consistent, and all active schemes now have a senior executive appointed to oversee their operation and ensure accountability.
Additionally, it was reported that HVC schemes are now less frequently identified as contributing factors in regulatory investigations, suggesting that recent oversight measures may be helping to reduce related harm.
Regarding gross gambling yield (GGY), it was estimated that around 3% of the sampled data comes from HVC schemes, though this figure varies widely across operators and sectors.
Land-based casinos appear more reliant on HVC-generated revenue, an expected outcome according to the Commission, given their operational characteristics and predominantly international, high-net-worth clientele. While this doesn’t currently raise concerns about consumer harm, it remains a relevant consideration in future regulatory oversight.
Good to know: The Gambling Commission recently released a qualitative research report offering deeper insights into problem gambling experiences in the UK.
Finally, the findings suggest the regulatory changes are working as intended despite some limitations in scope.
Though the results remain inconclusive, they suggest the current regulations are largely effective. The Commission plans to maintain vigilance, stepping in when operators fail to meet required standards.
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