KSA Initiates Market-Wide Investigation into Cashback Bonuses

The Netherlands’ Gambling Authority, known as the Kansspelautoriteit (KSA), has recently launched a market-wide investigation into cashback bonuses in the online gambling industry following a recent alert.

Cashback bonuses are a common phenomenon in online casinos, but they are not permitted in the Netherlands due to concerns about their potential impact on gambling behavior.

Cashback Bonuses and Dutch Legislation

A cashback bonus is a type of bonus in which players receive a portion of their losses back after the fact. In the Netherlands, bonuses are considered promotional activities, and according to the law, advertisements must not encourage excessive gambling behavior. The KSA believes that cashback bonuses violate this legislation because they encourage increased risk-taking and lower the threshold for gambling, such as by encouraging higher wagers or more frequent play.

In November 2022, the KSA urged all licensed online gambling providers to cease offering cashback bonuses. These providers received written warnings emphasizing that cashback bonuses are not allowed. The KSA cautioned that if online providers did not immediately cease offering these bonuses, they would face enforcement measures.

Recent Alert and Market-Wide Investigation

In August, the KSA received an alert regarding a licensed operator offering a cashback bonus. The KSA took immediate action, and the operator in question promptly terminated the violation. However, this alert indicated that, despite the previous warning to the market, some licensed operators continue to offer cashback bonuses. Therefore, the KSA has decided to initiate a market-wide investigation to further examine this issue.

The KSA’s market-wide investigation into cashback bonuses underscores the authority’s commitment to enforcing regulations related to bonuses in the online gambling industry. Cashback bonuses remain a point of concern due to their potential to promote excessive gambling behavior, and the KSA will take action against licensed operators who continue to offer these bonuses.