REVEALED: Dangers of VIP Status on Online Crypto Casinos

VIP programs are marketed as an exclusive membership with plentiful perks, claiming to reward loyalty with elite status. But VIP schemes at online crypto casinos present little public information about how players are selected, what internal metrics trigger designation or how hosts are trained to interact with high-spending customers.

Two recent in-depth investigations by the Australian Broadcasting Corporation (ABC) have uncovered these secretive schemes, revealing the shady nature of a VIP program at one of the world’s largest crypto casinos. 

Drawing from internal chat logs, gambling data and testimony from former employees and a VIP user, the reports outline how VIP hosts enabled, rather than intervened, despite constant personal contact with players who were losing lofty sums.

Tactics used by VIP hosts keep high-rollers betting

In practice, VIP hosts act as retention specialists, tasked with keeping high-value players active at all costs.

In one documented case, a player identified as “Oscar” lost more than $180,000 USD on the crypto casino Stake over several months. Rather than receiving a welfare check after rapidly depositing and losing tens of thousands of dollars, Oscar was welcomed into the casino’s VIP program and assigned a personal host. Messages reviewed by the ABC show the host congratulating him on his “progress,” celebrating tier upgrades, and issuing bonuses immediately after heavy losses.

Bonuses, gifts and “free play” betting credits

These bonuses, framed as gifts, are issued to reduce the emotional sting of losses while reinforcing the belief that bouncing back financially was just one win or streak away. When Oscar attempted to quit after losing well beyond his budget, the VIP host initially acknowledged his concern, then subtly redirected him by suggesting he keep his account open long enough to receive an upcoming bonus.

Offering incentive during moments of player self-awareness can short-circuit recovery and pull them back into active gambling. In Oscar’s case, it worked. He delayed self-exclusion, claimed the bonus and resumed betting within days.

Tiered VIP program structures

Another recurring tactic involved celebrating losses as “achievements.” High deposit volume and rapid wagering unlocked new VIP tiers. Rather than questioning how a player could afford to lose $50,000 in a matter of weeks, hosts praised their status and rewarded them with larger bonuses and more frequent communication.

A second ABC investigation revealed that this behavior extended to the very top of the organization. Messages between Stake’s CEO, Ed Craven, and a young high-roller named Chris, show direct encouragement, increased betting limits, cash-back rewards and help bypassing self-exclusion measures.

Despite Chris repeatedly referencing massive losses, emotional distress and failed attempts to stop gambling, he continued receiving incentives. At times, he was reassured that higher limits could be arranged “with one message.” Even after self-excluding, perks were reportedly transferred to newly created accounts. 

Ignoring the warning signs of a gambling problem

Former employees described hundreds of similar interactions daily, where players asking to be barred were assumed to be fishing for bonuses rather than signaling meaningful distress. Unless a player explicitly stated suicidal intent, interventions were nonexistant.

Intermittent rewards, social reinforcement, reduced friction for continued play and direct interference can all clearly worsen gambling addiction. VIP status may actually accelerate emotional attachment to the platform and remove natural stopping points.

Similar “predatory” VIP lawsuits in the United States

While the ABC investigations focus on crypto casinos operating outside many national regulatory frameworks, similar allegations have emerged against legal, regulated sportsbooks in the United States.

DraftKings lawsuits

In late 2024, Lisa D’Alessandro filed a lawsuit after discovering that her husband had secretly lost nearly $1 million gambling on the platform. According to the complaint, the losses included proceeds from the sale of her prior home and money gifted to their children. At the time, the couple had just had an offer accepted on a new home in New Jersey. When D’Alessandro rushed to the bank, she found their accounts drained and overdrafted. The next day, she filed for divorce. Her husband never returned home.

Court filings allege that between 2020 and 2024, D’Alessandro’s husband deposited and lost extraordinary sums, including 300% of his annual salary in 2022, rising to 440% in 2023. 

During this period, DraftKings had classified him as a VIP player and assigned him a personal host. The lawsuit claims that despite publicly stating that employees are trained to identify problem gambling behaviors, the company ignored clear warning signs and continued offering bonuses, incentives and personalized outreach intended to keep him betting. 

FanDuel’s legal challenge

FanDuel, owned by Flutter Entertainment, has also faced legal scrutiny. In early 2025, Amit Patel, a former Jacksonville Jaguars finance manager, sued FanDuel, alleging the company “actively and intentionally targeted and preyed” on his gambling addiction. Patel claims he gambled more than $20 million over four years, funded in part by embezzled team funds. 

He alleges that FanDuel’s VIP program supplied gifts, perks and trips that fueled his betting, and he is seeking $250 million in damages. FanDuel moved to dismiss the case, arguing it had no legal duty to prevent Patel from gambling and that his criminal conduct breaks any causal link.

BetMGM also sued

Sam Antar alleged that BetMGM exploited his addiction through analytics-driven promotions and five-figure bonuses, leading him to wager nearly $30 million in under a year. His case was dismissed in early 2024. 

Legal precedent in these types of cases

In general, legal precedent in the U.S. is almost always in favor of gambling companies, despite alleged predatory tactics. American courts generally agree that gambling is a consensual activity. Patrons engage in wagering with full knowledge of the risks, and casinos profit from the entertainment they provide. 

A frequently cited case dates back to 2008, when a U.S. District Judge ruled against Arelia Taveras, a compulsive gambler who sued Atlantic City casinos after losing nearly $1 million. The court held that gambling is a voluntary activity and that responsibility for losses ultimately rests with the bettor.

Judges have typically reasoned that adults knowingly accept the risks of gambling, and that even catastrophic losses do not automatically imply operator wrongdoing. Claims tend to fail unless plaintiffs can prove deception, fraud or conduct that clearly violates existing statutes.

That is not the same abroad though; Sweden recently ruled in favor of a user with a clear gambling addiction who lost €500,000 on one platform. Legal precedent has historically favored gambling operators. Courts have repeatedly ruled that casinos and sportsbooks do not have a general legal duty to prevent individuals from gambling excessively.

This legal reality becomes even more complex in cases involving crypto-based casinos, like Stake. These sites often operate outside national regulatory systems, and are not bound by the same consumer protection standards as licensed sportsbooks. As a result, bettors may have fewer legal remedies, weaker oversight and limited enforcement options when harm occurs.

While lawsuits continue to test where the line between consent and exploitation should be drawn, the courts have so far been reluctant to impose obligations on behalf of gambling operators, even as technology allows unprecedented insight into player behavior.

Specialized treatment for gambling addiction in the U.S.

When gambling harms arise, access to and awareness of specialized treatment is critical. Self-exclusion tools, warning messages and helplines tend to be insufficient for individuals with a gambling addiction, particularly those exposed to high-intensity VIP environments.

Gambling addiction frequently co-occurs with anxiety, depression, financial problems and relationship breakdowns. Effective treatment typically requires structured therapy, accountability and support systems that address psychological drivers and real-world consequences of gambling.

Birches Health provides specialized, virtual treatment for gambling addiction across the United States. Care is delivered by licensed clinicians with specific training in gambling disorder, using evidence-based approaches tailored to each individual’s situation. Most services, including individual counseling and clinician-led group therapy, are covered by insurance, as Birches Health partners with major insurance providers to reduce out-of-pocket costs. 

You can learn more or get started with Birches Health today:

Book an appointment 

Call 833-483-3838

Email help@bircheshealth.com