Letou CEO Paul Fox believes focusing closely on VIP betting revenue is a worthy strategy for operators, despite the "challenging" nature of the segment.
The Asian-facing operator’s digital revenue splits equally between VIP and non-VIP betting, even though that VIP share could stem from a very small number of players.
The CEO, however, says an efficient betting firm should be able to pick up new VIPs on a regular basis.
"In terms of revenue, online is about a 50/50 split between VIP betting and non-VIP betting," he explains to Gambling Insider.
"In terms of actual user numbers, it’s fairly minute. That 50% of revenue could be coming from little more than a handful of players.
"It’s always challenging relying on a small number of players for a large percentage of revenue. But, if your business is running well, you should be able to continue picking up new VIP players on a regular basis."
Part of running a successful VIP operation, according to Fox, is developing a closeness with players.
He adds: "We have a dedicated VIP team but we try to be as lean an organisation as possible. It will only be employees who’ve earned the company’s trust and established themselves over several years.
"They effectively operate almost 24/7. They are contactable at all times by VIP players via communication apps."
Fox was speaking exclusively for a feature of the March/April edition of the Gambling Insider magazine. Register for free here to read the full article when published.
