Continuous Closed Traffic Approved

One of our Class D controllers has taken issuing clearances such as

"Seneca 1234X, continuous closed traffic approved, cleared for the
option, no need to report base, I'll let you know of any arriving
traffic."

What he's basically authorizing is operating in the traffic pattern at
will without landing clearances. I suspect that he's engrossed with
his PlayStation that they have in the tower and doesn't want to be
bothered with a sole aircraft doing pattern work.

Anyone else had clearance such as this? (I'm not quite comfortable
with it. Just seems wrong.)