Mutual Loyalty: Rethinking VIP Programs in Light of New Regulation

Loyalty programs are the casino’s favorite bonuses and promos. These platforms recognize the value of their VIP players, so they can go the extra mile to keep them. You can find amazing VIP schemes that can result in exclusive bonuses, like the Vulkan Vegas casino 50 free spins that could be reserved for them. Other incentives include dedicated customer support, higher deposit and withdrawal limits, faster withdrawal times, special gifts, and more. Some casinos go over and beyond by offering free cruise trips, luxury products, and free vacations to top exotic destinations. There is no limit to what VIP schemes can give.

This trend did not begin with online sites. Land-based casinos have also been using them to entice their best customers. They could offer gifts, vacations, free food and drinks, special VIP rooms, and more. However, the lucrativeness of these bonuses raised the attention of regulators since they can be viewed as an impediment to responsible gambling. No regulator has outlawed them, but respectable bodies such as the UK Gambling Commission have tightened the regulations surrounding them to uphold player protection. 

In light of these new regulations, gambling sites must align their VIP programs with the rules while still achieving their goals. Mutual loyalty will be a major priority for casinos since the cost of these programs increased drastically. Historically, whenever new regulations come, they could have casualties if you do not conform to them quickly. Let us take a look at these regulations and the impact they will have on these schemes. 

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Latest Regulations on Loyalty Schemes

Online gaming platforms must run according to the strict operational standards set by their licensors. Player protection has been attracting a lot of airtime in recent times, so all stakeholders have been trying to refine their practices to uphold it. The licensing bodies are no exception because they must set the backbone for these initiatives. The latest guns have been aimed at loyalty schemes, which are a potential threat to player safety. This was also accelerated by cases of misconduct in the management of these programs.

Casino operators have been instructed to uphold accountability in the administration of these programs. According to UKGC, they must appoint a senior executive with a personal management license to run these programs. The license is usually mandatory for all individuals handling critical matters like regulatory compliance, overall operational strategies, marketing, and others.

The casinos must then follow certain regulations before making a client a VIP. First, they must ascertain that the money they spend is sustainable as a leisure expenditure. This is meant to prevent gamers from over-indulging in gaming and misconstruing it as an economic activity.

Secondly, the operators must determine whether the individual is at risk of developing problem gambling. They must assess the vulnerability and check for the history of such issues. Another requirement is that the operator must ascertain the individual’s identity and source of funds. This point is important for promoting responsible gambling as well as weeding out cases of money laundering through casinos.

Casinos are required to check and verify this information regularly to ensure that they do not develop problem gambling in the course of gaming. These are stringent requirements that give operators added responsibility in the management of these schemes. The regulations have made an immediate impact on these programs, with casinos reporting a big drop in the number of VIP gamers. This is set to continue as the regulators continue to crack the whip on casinos with rogue VIP programs.

Impact on the VIP Schemes

The huge impact that these regulations have made challenges casino operators to redefine their VIP programs. Player safety is the responsibility of all shareholders in the industry, including the casinos. Hence, all these efforts are positive because they are geared towards this common goal. The regulators are serious about banning these loyalty schemes if their expectations are unmet, so gambling platforms must do something.

Mutual loyalty is the main strategy that will work for these programs. The casinos make these programs to reward their loyal clients and encourage them to continue playing. They, in turn, expect their clients to heed the call and keep up their patronage. However, this will not be enough in light of the new regulations. Casinos can no longer use comp points alone to assess the suitability of players for VIP programs. They must go the extra mile to assess the identity, source of funds, and vulnerability to problem gambling.

All these checks are beneficial to the players since they will be safe. However, they are also expected to provide accurate information to the casino to facilitate this and guard their license statuses. Since casinos have responsible gambling measures, gamblers should also be ready to take them up in case of arising issues. With this mutual loyalty, the VIP schemes will continue to run unperturbed, while players will benefit from the added protection and exclusive offers. Fair, right?

Mutual loyalty is the strategy to adopt in light of the new regulations surrounding VIP programs. The VIP offers are amazing and will come with extra protection for the players. The player must, in turn, offer accurate information and continue to be loyal to the casino.