KSA initiates investigation into cashback bonuses

KSA initiates investigation into cashback bonuses

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KSA initiates investigation into cashback bonuses

The Kansspelautoriteit recently began investigating locally licensed gambling firms for using cashback bonuses.

Cashback bonuses are quite popular in the online gambling space, returning a small portion of a player’s spent funds after they lose. However, these types of bonuses are prohibited in the Netherlands due to their inciting nature.

In the gambling market of the Netherlands, all bonuses are considered to be a part of an operator’s promotional efforts. Gambling ads in the country are strictly regulated, and cannot induce their audiences to gamble irresponsibly. The Kansspelautoriteit stated that cashback bonuses break this rule, as they lower the barrier to entry to gambling and make taking larger risks seem safer.

About a year ago in November of 2022, the Ksa informed all of its licensees that cashback bonuses are not allowed and that they should cease offering such bonuses immediately. Last month, the regulator was informed that one particular licensed gambling firm was offering cashback bonuses to its player base, which prompted it to take immediate action and warn the operator of its failings.

The company in question responded immediately, taking down its cashback bonuses, however, this violation showed the Kansspelautoriteit that some licensees may still be offering such bonuses. This drove the authority to initiate a market-wide investigation aiming to eliminate the practice from the market.

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