15 Jan, 2020 @ 14:55
1 min read

Online gaming companies are finding ways to get big spenders hooked, says report

Online Betting

SOME Gibraltar gaming companies could be hit by a ban on VIP schemes after a Gambling Commission report.

A recent study by the government online gaming regulator revealed that some companies are rewarding gamblers who lose the most money.

The practice is most common with VIP schemes that offer free bets or cashback when the biggest spenders lose out.

In one particular case, a company was singled out for taking 83% of its deposits from 3% of customers.

The report claimed that algorithms to spot problem gamblers were less effective than those which gave out VIP status to certain gamblers.

The findings could result in a new Code of Conduct for VIP schemes or banning them altogether.

“This report shows how completely reliant the industry is on people with gambling problems and that they are profiteering from them,” said Labour MP Carolyn Harris of the parliamentary group on gambling.

“As the Gambling Commission has suggested, these practices should be banned to protect problem gamblers.”

With VIP schemes forming a large chunk of the profits of online gaming companies, their loss could be a big blow to the industry on the Rock.

There are currently around 30 different online gaming companies in Gibraltar who provide around £50million to public coffers every year.

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