The Kansspelautoriteit (KSA), the Dutch gambling authority, has initiated an investigation into the online casino sector following allegations of unauthorized bonuses and promotions. The primary focus of concern has been the use of cashback bonuses, which the KSA had previously challenged in November 2022.
The KSA’s Previous Stance on Cashback Bonuses:
The KSA had previously taken a stance against cashback bonuses, sending warning letters to online operators. These letters explicitly outlined that cashback bonuses were not permitted on platforms accessible to Dutch players. Operators were sternly warned that continuing to offer such promotions would expose them to enforcement actions by the KSA.
KSA’s Perspective on Bonuses and Advertising:
In a recent statement, the KSA classified bonuses as advertising activities in the Netherlands. According to Dutch law, advertisements must not encourage excessive or irresponsible gambling behavior. The KSA contends that cashback bonuses contribute to heightened risk-taking and a lower threshold for gambling, such as playing with higher stakes or more frequently.
Advertising Regulations in the Netherlands:
Starting from July 1, a ban on untargeted advertisements for gambling came into effect in the Netherlands. This prohibition extended to public spaces and broadcast services, encompassing billboards, television, and magazines. Online advertising remains under stringent regulation, and the KSA has urged operators not to test the boundaries as the new rules are implemented.
Effectiveness of Market-Wide Warnings:
While the KSA had issued market-wide warnings about the illegality of cashback bonuses, a licensee was found to be advertising using such a bonus in August. Although the licensee promptly ceased the bonus upon intervention by the KSA, this incident raised questions about the effectiveness of the initial warnings.
Comprehensive Investigation by the KSA:
In response to these developments, the KSA has initiated a comprehensive investigation into the online casino industry. This investigation seeks to address concerns related to unauthorized bonuses and promotions within the sector.
Previous KSA Actions on Illegal Gambling:
Earlier this summer, the KSA provided an update on its efforts to combat illegal gambling activities. The authority has been actively conducting investigations throughout the year to uphold the integrity of the Dutch gambling market.
The Kansspelautoriteit’s investigation into unauthorized bonuses and promotions within the Dutch online casino industry underscores its commitment to regulating and ensuring responsible gambling practices. As the Dutch regulatory landscape evolves, the KSA’s actions aim to maintain a secure and transparent gambling environment while addressing emerging challenges related to bonuses and advertising practices.