The Massachusetts Gaming Commission is intensifying its review of VIP and loyalty programs operated by online sports betting platforms, including DraftKings and FanDuel, amid growing concerns that these initiatives may encourage problem gambling. VIP programs often reward frequent bettors with perks such as trips, sports tickets, or free bet credits, raising questions about whether they exploit vulnerable gamblers rather than support responsible play.
“VIP programs should be for those who can afford to be VIPs, and it shouldn’t be predatory,” said Chair Jordan Maynard during the commission’s October 9 meeting, highlighting concerns that some programs may disproportionately target those struggling with gambling losses.
Risk and Targeting Concerns
A recent analysis by the Massachusetts Gaming Commission found that online sportsbooks often restrict customers who win consistently while extending VIP status and rewards primarily to those who frequently lose. According to Commission Research Director Mark Vander Linden, research links VIP programs to “higher risk gambling behavior.”
“Studies from other countries found VIP customers are more likely to be problem gamblers,” Vander Linden explained. He added that loyalty programs may even weaken the resolve of individuals attempting to reduce gambling or quit altogether. The direct involvement of VIP “hosts,” who communicate personally via texts or emails, can intensify the risk by encouraging continued betting.
Several lawsuits have been filed against DraftKings and FanDuel alleging that VIP programs contributed to gambling addiction and financial distress, sometimes through daily contact from hosts with struggling bettors. Two of these high-profile lawsuits were settled earlier this year, although the details were not disclosed.
Exploring Regulatory Safeguards
The Massachusetts Gaming Commission is considering regulatory measures to better protect consumers from predatory practices. Proposed rules include:
- Establishing a minimum age of 25 for VIP participation, above the state’s legal betting age of 21.
- Mandating affordability checks before granting VIP access, modeled on U.K. regulations that require operators to review financial statements.
- Removing incentives that encourage excessive or high-risk gambling.
Commissioner Eileen O’Brien expressed concerns about host compensation models, particularly if hosts are incentivized based on how frequently VIP customers bet. “I want more information about what exactly are the host incentives when it comes to compensation,” she said, emphasizing the need to understand potential conflicts of interest.
The Broader Industry Context
While loyalty programs have long been a feature of traditional casinos, online VIP programs differ in their personalized engagement with players. Industry representatives argue these initiatives are similar to loyalty programs in other sectors and claim that VIP hosts are trained to recognize signs of problem gambling. However, the Massachusetts Gaming Commission’s review suggests that these programs may still disproportionately encourage risky behavior among vulnerable bettors.
The commission plans to gather additional data from sportsbooks to better understand the operations and impact of VIP programs. This ongoing review forms part of a broader effort to enhance consumer protections and ensure that online sports betting remains fair, responsible, and transparent for all participants.
Source:
“Mass. gambling regulators look to rein in VIP programs by sports betting apps”, wbur.org. Oct 17, 2025
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