UK LEGAL COMMENT
the customer’s vulnerability. Information such as whether the customer is in a vulnerable group (the example given is 18-34 year old males) should be taken into account, as well as vulnerability linked to personal circumstances (e.g. poor mental health), situational (e.g. financial difficulties) and behavioural (e.g. high risk appetite).
• EDD – ensuring up to date evidence is held of the customer’s identity, occupation and source of funds. It is worth noting that “source of funds” evidence goes beyond an open source assessment of the customer’s income or wealth. In many cases, the Commission would expect documentary evidence demonstrating the flow of funds received by the licensee, such as a bank statement or pay slip. Contrary to the position in the draft guidance,
customers are eligible to join a VIP scheme if they have previously self-excluded, however this should be treated as a significant factor in the operator’s decision making.
What incentives can be off ered to VIPs?
The Commission does not propose to restrict the type of rewards that can be offered to VIPs, however the operator needs to ensure what is offered does not encourage behaviour such as loss chasing, excessive play or increased frequency of play. In particular, operators should consider:
• the timing of offers, to ensure they are not linked to periods of excessive play or significant losses;
• the structure of offers, to ensure tiered schemes do not result in excessive gambling in order to obtain a VIP status that is unsustainable; and
• whether the offer is proportionate to the VIP’s play and information held on them, particularly in relation to vulnerability and affordability.
What ongoing procedures are required?
For those customers who are part of a VIP scheme, licensees are expected to: • provide regular and enhanced information on gambling management tools;
• offer an active choice whether to set account limits;
• make safer gambling resources available at any appropriate point of contact;
• promptly comply with any requess to be removed from reward programmes and stop any personalised incentives immediately;
• regularly review the VIP’s suitability for incentives; • take action to restrict or terminate personalised incentives if the VIP’s spend or play exceeds their usual habits with no supporting explanation. Full records of decision making should be kept by
operators to demonstrate that VIPs are being monitored and show that they are interacting with them in a way which minimises the risk of harm.
What are the responsibilities of management and employees?
A named, senior management PML holder should be in charge of and accountable for the VIP programme’s compliance. This individual should assure themselves that incentives are proportionate, responsible, do not encourage risky behaviour and are not promoted in a way which results in excessive or unsustainable gambling. Board or Executive committees should oversee and review governance arrangements for VIP schemes. Relevant staff should be given enhanced training on AML and safer gambling risks specific to VIPs and be empowered to escalate any concerns regarding VIPs. Staff should not be incentivised or remunerated based on a customer’s loss, spend or activity.
Melanie is a gambling regulatory lawyer with 13 years’ experience in the sector. Melanie advises on all aspects of gambling law including licence applications, compliance, advertising, licence reviews and changes of control. She has acted for a wide range of gambling operators including major online and land-based bookmakers and casinos, B2B game and software suppliers and start-ups. She also frequently advises operators of raffl es, prize competitions, free draws and social gaming products. Melanie has a particular interest in the use of new technology for gambling products and novel product ideas.
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