A senior Government source told The Mail on Sunday that plans for an outright ban of the practice have won Ministerial support.
Previous attempts by the Gambling Commission to regulate the VIP practice have been accused of not going far enough.
Since October, bookies are required to check that customers can afford what they are betting before they make a customer a VIP.
Sir Iain Duncan Smith, the former Tory leader who has campaigned on the issue, last night said it was ‘high time’ VIP managers were banned.
He welcomed the news and said the ‘immoral’ practice is an ‘atrocious abuse, forcing people into debt; desperation by giving them incentive.
‘They are deliberately driving gamblers to worse debt.’ Sir Iain described claims from the gambling industry that the VIP practice has become better regulated as ‘rubbish’.
The Gambling Commission’s decision not to ban VIP schemes last year when bringing in new rules led campaigners to attack its ‘weak and vague regulation’.