SiGMA

Dutch regulator tells operators to stop providing cashback bonuses

Posted: Nov 30, 2022 15:14 Category: Europe , Online , Regulatory , Posted by Sharon Singleton

The Netherlands’ Gaming Authority (KSA) has told all its licensees to stop providing bonuses in the form of cashbacks on concern it will lead to riskier gambling behaviour.

In a statement, the KSA said it had sent a letter explaining that offering a bonus in this form isn’t permitted and operators risk enforcement action by the regulator.

A cashback bonus allows the player to get back part of their losses. The KSA said this may lead to the player taking more risks, such as playing more often, or placing higher bets. 

The KSA said bonuses are classed as ads.

Focus on gambling ads

“According to the law, advertisements may not encourage immoderate gaming behavior. In the opinion of the Ksa, this is the case with cashback bonuses,” the statement said. 

The KSA has been particularly active on online gambling ads recently. Earlier this week, it fined lottery brand Toto Online EUR400,000 for targeting customers in a younger age bracket.

It found the company was aiming its advertising at the 18-23 age group, which is not permitted under Dutch law. 

It has also warned the industry against over-exuberance of ads during the FIFA World Cup, saying it didn’t want to see a tidal wave of match-related marketing. 

The KSA banned the use of celebrities or influencers in online gambling ads at the end of June. 

The Netherlands opened up its market to regulated online gambling in October last year and most operators say business has been strong.

Prior to October 2021, online gambling was banned. 

Related Posts