KSA fights against loss-based bonuses

KSA fights against loss-based bonuses

Added:
KSA fights against loss-based bonuses

The Kansspelautoriteit has recently announced the results of its latest investigation into loss-based bonuses.

The regulator’s latest investigation was originally launched to research the effects of cashback bonuses, which, as their name implies, provide players with cashback in proportion to the amount of money they spend at a gambling business without winning. These types of bonuses are illegal in the Dutch gambling market because they lower the perceived barrier to entry of the pastime and enable gambling enthusiasts to make riskier wagering decisions, such as betting more money or playing for longer.

As part of this market-wide investigation, the Kansspelautoriteit has issued a warning to one licensed gambling firm for offering cashback bonuses, while two other licensees that were offering other types of loss-based bonuses were sent letters clarifying the regulator’s position on such offers.

The Kansspelautoriteit mentioned that as a result of this investigation, it will provide better clarity in its regulations on prohibited loss-based bonuses. The regulator added that it will begin enforcing the ban on such bonuses utilizing a new definition, “a bonus based on losses”, immediately.

This will officially outlaw not only cashback bonuses but also any other type of special offer through which players can be compensated for their losses at a gambling business.

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