The KSA warns operators against cashback bonuses
The Dutch Kansspelautoriteit has recently urged all operators to steer clear of utilizing cashback bonuses.
The main reason behind the KSA’s decision was the fact that cashback bonuses encourage players to take larger risks, as they will get back a small portion of their losses back. This portion is usually deceptively small, making players think they’ll lose less money, while in reality it lowers the threshold of gambling and enables users to stake more and more frequently.
Continuing with their statement, the Kansspelautoriteit added that as bonuses are classed as advertising campaigns, they are subject to their promotional rules. One of the laws that cashback bonuses break in the eyes of the regulator is the one prohibiting the encouragement of excessive gambling.
The KSA summarized their statement by promising legal action against operators who do not comply immediately with the latest order.