Velvet Rope

What's the Tactic?

Sports betting companies employ sophisticated VIP (Very Important Person) incentive schemes to identify and cultivate their most lucrative customers. This tactic involves treating certain clients with exclusive perks and personalised attention, creating a powerful illusion of status and privilege. It’s like a velvet rope that lures you in, but ultimately, it ties you up in your losses – which are, in fact, the betting company's profits.

A typical example of this tactic might involve a regular bettor receiving a message like: "Congratulations! You’ve been selected for our VIP Gold Lounge. Enjoy exclusive perks like: Personal betting manager, $500 monthly bonus bets, Invites to premium sports events, Faster withdrawals and higher limits. Keep betting to maintain your status!"

Why Does It Work?

VIP schemes are incredibly effective because they tap into powerful psychological desires, creating a strong incentive for continued, escalated betting:

• Status and Exclusivity: Humans crave status and being part of an exclusive group. Being designated a "VIP" fulfills this need, making individuals feel valued and important. This fosters a sense of loyalty not just to the platform, but to their new elevated status within it.
• Perceived Value and Benefits: The promise of "exclusive perks" such as personal managers, bonus bets, and special invitations creates a perception of significant added value. These benefits are designed to feel like rewards for continued engagement, even if the cost of achieving and maintaining VIP status far outweighs the value of the perks received.
• Loss Aversion and Maintenance: The threat of losing VIP status (or dropping to a lower tier due to inactivity) is a potent motivator. This leverages loss aversion, a cognitive bias where the pain of losing something is psychologically more powerful than the pleasure of gaining an equivalent item. To retain their perceived elite standing, users are incentivised to bet more frequently, place larger stakes, and avoid taking breaks.
• Personalised Attention: A "personal betting manager" provides a bespoke customer service experience, making the bettor feel understood and cared for. However, as highlighted by a recent report on sportsbook VIP programs, these "hosts" are often incentivised to encourage continued betting and increase customer spending, effectively blurring the lines between customer service and sales (see Further Reading).
• Reinforcement Learning: The regular provision of bonus bets and perceived "rewards" acts as a variable-ratio reinforcement schedule, which is highly effective in driving habit formation in gambling. Users learn that sustained engagement (and spending) leads to periodic rewards, even if the overall outcome is negative.

What's the Impact?

VIP programmes are a key strategy for betting companies to identify and retain their most profitable customers – who are often those experiencing or at risk of significant gambling harm. This is all in pursuit of driving long-term revenue, often at the expense of the customer’s wellbeing.

• Escalated Spending: The primary behavioural impact is a strong incentive to bet more frequently and place larger stakes to retain or advance VIP status. This directly contributes to higher financial losses over time.
• Reduced Breaks and Increased Habit Formation: The pressure to maintain status discourages users from taking breaks, which are crucial for self-reflection and controlling gambling habits. Inactivity might lead to a downgrade, effectively punishing responsible behaviour.
• Targeting Vulnerable Individuals: These schemes often identify and heavily target individuals who gamble large sums of money, which disproportionately includes those with existing or developing gambling problems. These are the "whales" that companies actively seek to keep engaged.
• Emotional and Psychological Entrapment: Quitting or reducing betting can become emotionally and psychologically harder. Users feel they are "walking away" from exclusive benefits, status, and a relationship with their dedicated manager, creating a form of attachment to their gambling behaviour. As the referenced report notes, these programs can make it extremely difficult for bettors to step back, even when they recognise their gambling is problematic.
• Reinforcement of Problematic Behaviour: The "rewards" within VIP schemes can inadvertently reinforce problematic gambling behaviours by treating high spending as something to be celebrated and rewarded rather than a potential indicator of harm.

What to Watch For

If you are a regular bettor, be highly suspicious of any offers that seem to elevate your status or offer exclusive benefits:

• Invitations to "Exclusive" Tiers: Messages congratulating you on reaching "VIP," "Gold," or "Platinum" status.
• Personalised Offers/Managers: Being assigned a dedicated account manager or receiving highly tailored bonuses that seem designed just for you.
• Pressure to Maintain Status: Any language that suggests you need to "keep betting" or "maintain activity" to retain your perks.
• Increased Limits or Faster Withdrawals: While seemingly convenient, these often go hand-in-hand with encouraging higher stakes and more fluid money movement, which can escalate losses.

Remember, these tactics are sophisticated, and they are designed by experts to influence your behaviour.

You’re not alone, and it’s not on you. These tactics are designed to keep you betting, but you can take back control. Head to beingplayed.info or call 0800 664 262 for free, confidential support.

Further Reading:

• Wall Street Journal. (2024, April 4). Sportsbooks’ VIP Programs Are Fueling Gambling Addiction. (Original reporting by The Washington Post; this is a widely syndicated or referenced report).
  • Link to Washington Post original: https://www.washingtonpost.com/sports/2025/04/04/sportsbooks-vip-programs-loyalty-hosts/