U.S. sports betting legalization has led to an increase in the number of VIP programs gambling operators offer. However, opponents say this strategy potentially supports problem gambling.
Operators such as DraftKings, BetMGM, FanDuel, and Penn Entertainment have built these programs to reward frequent bettors with inducements, free bets, gear, and even VIP getaways. Critics contend such an approach exploits gambling addiction and encourages reckless betting.
Some job postings for VIP host positions, such as those from DraftKings, state hosts are responsible for increasing activity and even reactivating dormant players. These jobs appear to be financially motivated to attract high-value players to bet, raising the question of whether the companies are committed to responsible gaming. After being contacted by The Guardian, DraftKings reportedly changed its job postings, initially including language on maximizing customer spending.
Critics, such as problem gambling organizations, argue VIP hosts are in a conflict of interest. While firms say hosts are trained to recognize problem gambling signs, they also have an incentive to keep players.
Cait Huble from the National Council on Problem Gambling pointed out VIP retention strategies appear to counteract operators' claims the programs don't encourage excessive betting. She noted rewarding continued losses and fostering a close relationship with hosts could increase compulsive gambling tendencies.
Lawmakers have also noticed these concerns. U.S. Sen. Richard Blumenthal has been vocal in his criticism of sports betting companies, accusing them of prioritizing profits over public well-being.
“Sports betting companies make a paltry pretense of stopping gambling addiction,” Blumenthal said. “They’re failing to address the national gambling addiction crisis, because their profits take priority over people.”
Moreover, a JAMA Internal Medicine study published last week noted there was a significant increase in gambling addiction searches since 2018, with more Americans seeking help over the affliction.
Federal inquiry may follow
Sen. Blumenthal proposed a federal review, arguing current state-level regulations are insufficient to prevent predatory gambling practices. Last year, he sent letters to major gambling businesses requesting details about their VIP programs and marketing tactics, raising questions about how they select players and incentivize them to remain active bettors.
Some gamblers report their VIP hosts contacted them dozens, if not hundreds, of times a day, creating an environment where they feel personally encouraged to keep wagering.
In response to Blumenthal's inquiries, gambling companies defended their VIP programs by comparing them to customer loyalty programs in other industries. Some executives argued their programs enhance customer experience rather than push frequent bettors to wager more.
FanDuel attempted to distance itself from these criticisms by stating its VIP hosts aren't compensated based on customer gambling activity but on adhering to responsible gambling measures.
Fanatics, which operates a betting platform and a sports merchandise business, claimed it grants VIP status based on engagement across its ecosystem rather than betting activity alone. By contrast, several other major operators, including BetMGM, Bet365, Caesars, DraftKings, and Penn, declined to respond to The Guardian's inquiries about their VIP host compensation structures.
Some U.S. states already started implementing legislation to combat problem gambling, with New York introducing two bills requiring online operators to disclose potential gambling harm in their ads.
