Kansspelautoriteit (KSA), the Dutch Gambling Authority, has once again reminded operators of their licensing duties regarding cashback giveaways.
Dutch licence holders found themselves again in the sight of the KSA, with the regulator stating that the provision of cashback bonuses should cease.
In a letter addressed to betting and gaming firms in the Netherlands, the gambling authority warned all operators of action enforcement if they are found to be offering bonuses in this form, as it is not permitted.
“With cashback bonuses, players get back part of their losses,” the KSA explained. “This contributes to taking more risks and lowers the threshold to gamble. For example, by playing with higher bets or by playing more often.
“Bonuses are classified as advertising activity. According to the law, advertisements may not encourage immoderate gaming behaviour. In the opinion of the KSA, this is the case with cashback bonuses.”
In detail, the KSA states that bonuses cannot be modified to incentivise players to engage with a specific game or market, nor can they be used for customer re-engagement.
Cashback bonuses fall right in this category, with the regulator viewing them as a re-engagement tool due to them giving back some of the player’s losses.
Control over bonuses is regulated by the Dutch advertising requirements first introduced together with licensing applications on 1 April, six months after the KOA Act.