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The Massachusetts Gaming Commission (MGC) has launched a review of online sports betting VIP programs, raising questions about whether these initiatives unfairly target frequent losing bettors and undermine responsible gambling efforts.
At an October 9 meeting, MGC Chair Jordan Maynard emphasized the need for safeguards, saying:
“VIP programs should be for those who can afford to be VIPs, and it shouldn’t be predatory.”
Major operators, including DraftKings and FanDuel, offer VIP or loyalty programs that reward high-value customers with perks such as exclusive trips, event tickets, and betting credits. However, a commission analysis found that while some sportsbooks restrict consistently successful bettors, they often extend VIP treatment to players who lose more frequently — a pattern that has drawn concern from regulators.
Link between VIP programs and gambling harm
Commission Research Director Mark Vander Linden noted that although data is limited, studies from other countries indicate VIP customers are disproportionately affected by gambling harm. He added that loyalty programs can interfere with self-exclusion and harm-reduction goals by incentivizing continued betting.
Under review are potential regulatory measures such as:
- Raising the minimum VIP eligibility age from 21 to 25.
- Requiring affordability and financial checks before granting VIP status.
- Banning bonuses or incentives that promote risky play.
These ideas mirror policies already adopted in the United Kingdom, where regulators have clamped down on similar programs.
Concerns over VIP host practices
Unlike traditional casino loyalty schemes, online VIP programs often rely on dedicated “hosts” who communicate directly with bettors via calls, texts, or emails. Lawsuits filed against major operators have claimed that some hosts contact problem gamblers daily, worsening addiction and financial strain. Two such cases involving DraftKings were settled earlier this year.
Commissioner Eileen O’Brien also raised red flags about host compensation, noting that pay structures tied to customer betting activity could encourage unethical behavior.
The MGC said it will request further data from operators before determining whether new rules are needed. The review forms part of Massachusetts’ broader effort to balance industry growth with consumer protection as online sports betting matures in the state.
Source: Yogonet
