October 1st, 2020 1.00pm
The Betting and Gaming Council (BG) and the UK Gambling Commission (UKGC) have announced the completion of the new Code of Conduct for the country’s VIP gamblers. The new code comes with a zero-tolerance towards any sort of wrongdoing in the manner VIP accounts are treated by operators.
The report, officially titled “The Gambling Industry’s Code of Conduct for High-Value Customer VIP Reward Programs” gives a summary of all actions proposed by the BGC and UKGC to deal with operators’ unsafe practices when it comes to their VIP programs.
More Accountability for VIP Managers
Operators will now have to restrict access to their VIP programs to customers under the age of 25. The Code will introduce should also increase the accountability of the management in charge of the VIP program, forcing them to pay more attention to their specific operations.
The whole idea of holding VIP managers responsible for the actions of their VIP programs is not a new one. The UKGC also wants to change the current legislation to be able to enforce more harsh punishments for those who violate regulatory norms, even suspending their license if necessary.
We should point out that the term “VIP Reward Programs” is not new, as it refers to what used to be called “VIP schemes”. These programs generate the biggest portion of earning for operators, which have been trying to diversify their VIP offering, in order to avoid all the risks that come with the new legislation.
How Will the New Code Work?
The ultimate goal of the new Code is to oversee the functioning of VIP programs. The main principles of that goal are focused on three areas.
First of all, anyone who wants to join a VIP program will have to go through a strict screening process known as Know Your Customer (KYC). These screenings will also be applied to existing customers.
Under the provisions of the Code, all VIP programs will need to be overseen by the operator’s management, who will also be responsible and accountable for their operations.
Thirdly, operators will have to be focused on preventing gambling-related harm, while they’ll also have to explain the risks of gambling to their customers in a direct and clear manner.
New Rules and Their Implementation
All the specific changes in regulations that operators are required to comply with are outlined in the “Operator Key Commitments” section of the Code. Any operator offering a VIP program will have to appoint an executive, who’ll be in charge of the customer oversight.
As we’ve already mentioned, anyone under the age of 25 will not be able to become a VIP customer, while thorough screenings will become obligatory. Operators will also make sure they won’t offer bonuses to their employees for attracting more VIP customers.
Operators will need to make sure that all their affiliate partners adhere to measures introduced by the new Code. Thorough assessments of the program should be conducted frequently.
The BGC and UKGC will help operators to successfully implement the new Code, and one of the means to assist them in this process is a recently-released list of DO’s and DONT’s.
According to available information, the new Code should be implemented by the UKGC by the end of this year. In the meantime, the government led by Prime Minister Boris Johnson is looking to overhaul the country’s gambling industry.
The industry could suffer a serious blow if the government imposes more strict restriction due to the ongoing health crisis. Even the BGC warned this could cause serious problems.
The Code should be up and running by the end of the year
Check out our selection of the best online casinos here!