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Massachusetts gaming regulators are rethinking how online sportsbooks handle their VIP and loyalty programs after raising concerns that these promotions may target frequent losing bettors instead of rewarding responsible play.
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At a recent meeting of the Massachusetts Gaming Commission (MGC), Chair Jordan Maynard stressed that the goal is to ensure these programs do not exploit vulnerable customers. “VIP programs should be for those who can afford to be VIPs, and it shouldn’t be predatory,” Maynard said.
The commission’s analysis revealed that several online sportsbooks have restricted winning players while extending VIP perks — such as tickets, travel, and bonus credits — to customers with consistent losses. That pattern, officials say, raises questions about fairness and consumer protection.
Research Director Mark Vander Linden noted that while studies on the issue are limited, international data show that VIP participants are more likely to experience gambling-related harm. He added that loyalty programs can make it harder for individuals who are trying to reduce or quit gambling.
Among the options on the table are stricter eligibility requirements. Regulators are considering a minimum participation age of 25, higher than the state’s legal betting age of 21, and mandatory affordability checks similar to those in the United Kingdom. The commission may also require sportsbooks to remove incentives that encourage high-risk betting behavior.
Commissioner Eileen O’Brien expressed concern over how VIP hosts are paid, warning that compensation tied to player spending could push hosts to promote unsafe gambling habits.
Online VIP programs differ from traditional casino loyalty clubs by using personal communication channels — including text messages and emails — to maintain contact with bettors. Some lawsuits across the U.S. have claimed that these methods contributed to gambling addiction, with reports of hosts contacting customers daily. Two such cases involving DraftKings were settled earlier this year.
Industry representatives argue that VIP programs are no different from loyalty initiatives in other sectors and that staff are trained to identify harmful behavior. Regulators, however, say more transparency is needed. The MGC plans to collect additional data from operators before deciding on new rules.
The review forms part of a broader push by Massachusetts regulators to balance business innovation with player protection as the online sports betting market matures.
Officials are concerned that online sportsbooks reward losing bettors and may encourage risky gambling.
Possible measures include a 25+ age minimum, affordability checks, and removing incentives that promote excessive betting.
Major companies like DraftKings and FanDuel are among those offering loyalty programs under review.