KSA Licensed Casinos Banned from Offering Cashback Bonuses
LISTEN TO THIS ARTICLE:Holland’s gambling regulator, Kansspelautoriteit (KSA), has published new rules governing cashback bonuses after a number of operators were found to have been in breach of regulations.
According to Dutch regulations, operators are not allowed to offer cashback bonuses; however, the authority found a number of bonus offers that were linked to a player’s losses and compensated them proportionally.
Three Operators Breaching Regulations
During its assessment, the KSA found three operators that were offering illegal bonuses. The authority issued one with a formal warning and communicated with the other two regarding the loss-based bonuses.
According to the gambling regulation authority, this type of bonus encourages players to take more risks, including betting larger amounts as they know that even if they lose, some money will be returned. As a result, the KSA has changed the language in the regulations to refer to “bonus based on loss”. In other words, any bonus based upon losses is against the rules.
This also encourages excessive participation. Players bet higher, take more risks and play more often, with all its consequences. At KSA, the interests of players are central. A safe gambling market and the prevention of gambling problems are high on our agenda. To protect players even better, we immediately clarify the definition as a basis for strict supervision. Any bonus that is in any way linked to a loss is prohibited.
Tackling Excessive Gambling
The KSA said that it started investigating last summer after being tipped off about bonuses that breached the regulations. Prior to the investigation, in November 2022, the regulator had instructed all license holders to stop offering cashback bonuses.
It was reported that the KSA wrote to its licensees to explain that cashback bonuses may lead to “excessive participation”. License holders were then given one week to remove any such bonus.
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