The Kansspelautoriteit (KSA), the Dutch gambling regulator, has made changes to its rules surrounding cashback-type bonuses after discovering that several licensed operators were violating regulations.
In the Netherlands, operators are prohibited from offering cashback bonuses, which involve giving players a portion of their losses back. However, the KSA found that some operators were offering similar bonuses that compensated players in alternative ways for their losses.
During their research, the KSA identified three operators who were offering these types of bonuses. One operator received a formal warning for offering a cashback bonus, while two others were contacted regarding their loss-based bonuses.
The KSA stated that these types of bonuses encourage players to take more risks, including playing with higher stakes because they know they will get some of their losses back. As a result, the KSA has revised its regulations to explicitly ban any bonuses that are linked to gambling losses.
According to KSA chairman René Jansen, the focus of the KSA is to protect players and prevent problem gambling. The KSA’s immediate clarification of the definition of prohibited bonuses will allow for more stringent supervision and enforcement.
This investigation into banned bonus offers came after a previous directive from the KSA in November 2022, which instructed all Dutch igaming licensees to stop offering cashback bonuses. Licensees were given one week to confirm that they were not offering such bonuses.
The KSA’s actions are part of a broader effort to prevent problem gambling behavior. In December, the Dutch minister for legal protection, Franc Weerwind, announced new measures aimed at protecting players, including requiring providers to contact players who have set a deposit limit of €350 and informing them of the risks of gambling at such high amounts. Additionally, there are proposals to display financial amounts in euros and further research into overarching gaming limits.