US gambling giants face scrutiny over VIP programs: 'Profits take priority over people'

[BumRushDaShow]

Source: The Guardian

Sat 22 Feb 2025 07.00 EST
Last modified on Sat 22 Feb 2025 07.02 EST


Firms at the heart of the US’s sports betting boom have been accused of encouraging gamblers to chase losses by rewarding high spenders with betting credits, bonuses, gifts and even trips. In letters obtained by the Guardian, gambling giants told a prominent US senator last year that their controversial VIP programs were “not designed” to prompt frequent bettors to bet more. But problem gambling advocates are skeptical.

Recent job adverts published by one operator indicate that VIP hosts are expected to encourage gamblers to spend on their employer’s platform. A host at DraftKings is expected to “exceed engagement and service level performance targets” and “assist in reactivation efforts to re-engage inactive users”, according to two postings seen by the Guardian. DraftKings declined to comment on the adverts. Shortly after the Guardian contacted the firm, however, the two ads were modified to remove mentions of these expectations.

VIP hosts appear “financially motivated to keep people who are kind of considered high value engaged”, said Cait Huble of the National Council on Problem Gambling. This, she added, “creates a conflict with identifying, addressing responsible gambling behaviors and problem gambling”. “The retention tactics that we’re seeing run potentially a little counter to” operators’ claims that their VIP programs are not designed to get frequent bettors to bet more, Huble said. “It definitely seems like there’s some encouragement around chasing losses, which is a huge factor of problematic play.”

A handful of lawmakers on Capitol Hill have grown increasingly concerned by the industry’s methods. “Sports betting companies make a paltry pretense of stopping gambling addiction,” Richard Blumenthal, the Democratic senator of Connecticut, said. “They’re failing to address the national gambling addiction crisis, because their profits take priority over people.” Current regulations, largely set at the state level, are “falling woefully short”, added Blumenthal, who has proposed a federal crackdown.

Read more: https://www.theguardian.com/us-news/2025/feb/22/sports-betting-vip-programs

[Ponietz]

1. Pay to play video games are doing this with children

It should be illegal.

[3Hotdogs]

2. Many live casinos do this. A woman I worked with, got $5m on her husband's

permanent Workmen's Comp disability. She moved to Pittsburg, calling to tell us that she was so good at the casino, they sent free limo's to pick her up.

A couple of years later, she was living with her father in Florida because she couldn't pay rent.

[3Hotdogs]

3. In back of this, is the question: How do you fuck up a casino?

Or three casinos?

[cate94]

4. He's concerned they are putting profits before people?

Our healthcare system is built on that very principle. Isn’t that what we are seeing in our current government? Profits before people seems to be the American way.