Entering the new year, not even a week goes by, the shares of gambling operators in the UK drops following news of gambling regulator hitting perks and incentives given to habitual gamblers by gambling companies.
On Friday, the shares in the top gambling companies in the UK including, GVC, William Hill and gambling software maker Playtech dropped between 2% and 4%.
The gambling regulator in the UK has been strict with gambling operators in its bid to tackle the increasing gambling addiction.
A recent report from the UK Gambling Commission finds that the majority of the deposits and bets placed on their online gambling sites come from a handful of customers who are showered with several perks and incentives to gamble more and more.
The UK gambling watchdog has taken the issue seriously and according to the reports, the gambling regulator can also introduce regulatory restrictions on offering bigger rewards for frequent gamblers. It is also planning to put a limit on deposits and encourage the industry to adopt a code of conduct.
“We have been taking action to address poor practice around the treatment of VIP customers for some time,” a spokesperson for the commission said.
EXclusive Services For VIP Gamblers
The gambling regulator its report has found that the VIP customers make most of the deposits with the gambling operators and they are the ones encouraged the most to gamble more and more. The gambling companies receive most of their deposits from a very small number of VIP gamblers.
The gambling regulator in its report says that the companies use several perks to lure customers to gamble more and more and it targets these VIP players. The gambling commission views these as encouraging gambling behavior by incentivizing it.
The UKGC report has been published two months after a cross-party group of lawmakers demanded a series of measures to bring changes to the way online casinos in the country operate. They called for stricter measures to protect the vulnerable.