The Dutch Gambling Authority (KSA) has undertaken a thorough investigation to enhance the clarity of existing definitions related to bonuses in online gambling. This investigative effort has led to the adoption of the term ‘bonus based on loss’ by the KSA, with immediate redefinition. This move aims to address concerns and conflicts with the Dutch Gambling Act regarding bonuses linked to players’ losses.
Redefinition and Immediate Implementation:
The KSA, recognizing the need for clarification, has promptly redefined the term ‘bonus based on loss.’ This redefinition is effective immediately, with the KSA asserting that all forms of such bonuses are in conflict with the Dutch Gambling Act. This proactive approach indicates the authority’s commitment to ensuring compliance within the online gambling industry.
Cashback Bonuses and Prohibition in the Netherlands:
Cashback bonuses, a common feature in online casinos globally, operate on a loss-based model where players receive a portion of their losses back after gameplay. However, in the Netherlands, these bonuses face prohibition due to concerns about their potential to encourage increased risk-taking and lower the threshold for gambling behavior. This prohibition is grounded in the authorities’ dedication to maintaining a safe gambling environment and preventing gambling-related problems.
Enforcement Actions and Warnings:
In response to the investigation’s findings, the KSA has taken decisive enforcement actions. A formal warning has been issued to one license holder found offering a cashback bonus, signaling the seriousness with which the authorities approach violations. Additionally, two other license holders received letters clarifying the KSA’s stance on various bonus structures, including those compensating for losses through methods other than direct cashback.
Chairman’s Perspective on Loss-Based Incentives:
René Jansen, Chairman of the KSA, emphasized the negative impact of loss-based incentives on player behavior. He stated, “This encourages excessive participation. Players bet higher, take more risks and play more often.” This statement underscores the KSA’s commitment to prioritizing player interests and promoting a safe gambling market.
Player Protection and Prevention of Gambling Problems:
Chairman Jansen further highlighted the KSA’s dedication to player protection and the prevention of gambling problems. The immediate clarification of the definition and prohibition of any bonus linked to losses reflects the authority’s commitment to creating a secure gambling environment that prioritizes the well-being of players.
Strict Supervision and Regulatory Measures:
The redefined definition serves as the basis for strict supervision, signaling a shift towards more robust regulatory measures. The KSA’s stance on prohibiting any bonus linked to losses indicates a proactive approach to mitigate potential risks associated with online gambling, aligning with broader regulatory goals.
The KSA’s recent actions and redefinition of loss-based bonuses underscore its commitment to maintaining a safe and responsible online gambling environment. By addressing concerns related to cashback bonuses and issuing warnings to non-compliant license holders, the authority aims to protect players and prevent excessive risk-taking. The immediate implementation of the redefined definition reflects a proactive approach to regulation, signaling a new era of strict supervision in the Dutch online gambling sector.