Kansspelautoriteit (KSA), the Dutch gambling authority, has ordered all licensed operators of online games of chance to stop providing bonuses in the form of cashback.
Issuing the instruction on its website, the KSA has threatened to take “enforcement action” if the warning is not heeded by operators.
Additionally, providers in the Netherlands were each sent a letter detailing the new directive.
Explaining the rationale behind the decision, the KSA contends that bonuses – which are classified as advertising activity – are at odds with advertisement laws, which prohibit the encouragement of immoderate gaming behaviour.
With cashback bonuses, players get back part of their losses and this, according to the KSA, contributes to taking more risks and lowers the threshold to gamble.
The KSA’s latest ban follows the €400,000 fine issued last week to Toto Online.
The Nederlandse Loterij brand was found guilty of sending advertising – including bonus offers – to its entire customer base from October 1, 2021, to February 1, 2022.
This included young adults aged between 18 to 23 which, under the KSA’s regulations, is strictly prohibited.
The National Postcode Lottery (NPL) was also recently warned by the KSA after breaching its advertising rules while gambling operators were reminded of their advertising duties ahead of the 2022 FIFA World Cup.
