The Dutch regulatory body, Kansspelautoriteit (KSA), has issued a warning to suppliers in the Dutch market, stating that cashback bonuses are illegal in the Netherlands and should not be provided to local operators. The KSA argues that these bonuses contribute to increased gambling risks by allowing players to win back part of their losses, lowering the financial threshold to gamble. Such bonuses can prompt players to place higher bets and engage in more frequent gambling, potentially leading to excessive gaming behavior. As bonuses are considered a form of advertising activity under Dutch law, they must not encourage immoderate gaming behavior. The KSA firmly believes that cashback bonuses constitute such behavior and warns online providers of potential enforcement actions if they fail to cease offering cashback bonuses immediately.
Concerns Over Cashback Bonuses:
The KSA highlights the risks associated with cashback bonuses, emphasizing that they enable players to recover a portion of their losses. This, in turn, can entice players to take more risks and engage in higher-stake gambling activities. By lowering the financial threshold to gamble, cashback bonuses have the potential to create an environment that encourages excessive gambling behaviors, which can have negative consequences for players.
KSA’s Stance on Immoderate Gaming Behavior:
Under Dutch law, bonuses are considered a form of advertising activity, and advertisements must not promote immoderate gaming behavior. The KSA firmly believes that cashback bonuses fall into this category, as they incentivize players to engage in higher bets and more frequent gambling. By reaffirming its position on cashback bonuses, the KSA sends a strong message to online providers that these bonuses are deemed inappropriate and illegal in the Dutch market.
Enforcement Actions and Investigations:
The KSA warns online providers that failure to immediately cease offering cashback bonuses may result in enforcement actions. The regulatory body has been proactive in investigating and cracking down on illegal online gambling activities. In recent investigations, the KSA has identified “affiliate websites” that promote illegal gambling offers. These websites receive payment for directing web traffic to unauthorized gambling platforms. The KSA has also granted licenses to approved operators, such as Holland Gaming Technology and Smart Gaming, as part of the regulated online gambling market in the Netherlands.
The Dutch regulatory body, Kansspelautoriteit (KSA), is taking a strong stance against cashback bonuses, warning suppliers in the Dutch market that such bonuses are illegal and should not be provided to local operators. The KSA argues that these bonuses contribute to excessive gambling behavior by allowing players to recover part of their losses, thereby encouraging higher bets and more frequent gambling. As bonuses are classified as a form of advertising activity, they must not promote immoderate gaming behavior according to Dutch law. The KSA emphasizes its commitment to enforcing these regulations and warns online providers of potential enforcement actions if they do not comply. By addressing the issue of cashback bonuses, the KSA aims to create a safer gambling environment and protect players from the risks associated with excessive gambling behaviors.