Can operators rely on revenue from VIP players while running an effective player protection strategy? 

A trio of industry experts considered this question in a panel titled ‘Can operators focus on player protection and increase shareholder value’ – part of SBC Digital’s Player Protection online conference.

“From my perspective, good player protection doesn’t mean that you can’t have high-value customers,” said Andy Danson, Partner at Bird & Bird.

“It does mean that for high-value customers you’ve got to be particularly careful as an operator to ensure that they are in control of their gambling and that they can afford their losses, so there is more work to be done on the operator side.”

Floris Assies, Founder of Better World Casinos, argued that VIP players with greater disposable income are more likely to be gambling for “the right reasons”.

He said: “Some people gamble for entertainment and that’s perfect. It’s very likely that the people who have more disposable income gamble more for the right reasons than those who have less, because they gamble with the hopes of actually getting rich out of it and see it as a form of income, and that’s the wrong motivation for gambling.”

Also present on the panel was Peter Marcus, CEO of The Marcon Ltd and former Group Operations Director for Entain, who spoke about the importance of VIP account managers understanding their players.

“A real VIP is someone you know a lot about, you’ve met them, you understand their financial situation and you understand their personal situation,” explained Marcus. 

“You know if they’re playing for recreational purposes or if they’re going into the area they shouldn’t be doing. A really good VIP manager’s job is not to maximise their revenue, it’s to manage and look after the customer and to look after the customer in wellness, safer gambling, regulatory AML, KYC et cetera.”

‘20% earn 80% of the profit’

Despite advocating for the benefits of a proper VIP programme, Marcus also warned against the risks of operators relying on a small section of VIP customers.

He said: “Larger companies have to start thinking about a different model. There are too many companies globally that are too reliant on VIPs, and a few VIPs. When they leave, their business is in trouble.

“I think if you look at what Sky Bet did from the very beginning, [it was] a recreational player base. That does not mean that they don’t have VIPs, of course Sky Bet had VIPs, but the massive majority of their customers are recreational, say £100 up to £500. Those types of companies are more successful.

“The ones that balance across being lots of mass market customers and a few VIPs, you’ve got a more sustainable business model. You may not maximise your profit quickly, but you’ve got a much more sustainable business and that shows again and again. That’s more successful and, by the way, more compliant.”

SBC Digital – Player Protection

This conversation was just the first in a full day of player-protection-focused content. 

Taking place before Safer Gambling Week 2024, SBC Digital – Player Protection sees a lineup of experts tackle the key topics surrounding player protection including affordability checks, safer gambling messaging and cross-operator collaboration.

You can register for the event by clicking here.