Ksa warns of enforcement action should cashback bonuses persist

The Dutch gambling authority, Kansspelautoriteit, has warned of imminent enforcement action should licensed entities fail to cease the offer of cashback bonuses.

The regulator has urged all group’s that occupy a space in the regulated ecosystem to stop such activity, with a letter sent to each containing a reminder that offering a bonus in this form is not permitted.

It has been noted by the Ksa that bonuses are classified as advertising activity, with it being reminded that, according to the law, advertisements may not encourage immoderate gaming behaviour. In the opinion of the Ksa, this is the case with cashback bonuses.

If online providers do not immediately stop providing cashback bonuses, the Kas has informed that regulatory action will subsequently be forthcoming.

Regarding the warning, the Ksa noted: “With cashback bonuses, players get back part of their losses. This contributes to taking more risks and lowers the threshold to gamble. For example, by playing with higher bets or by playing more often.”

Earlier this week, Franc Weerwind, Dutch Minister for Legal Protection, in a parliamentary Q&A session regarding payment providers and the region’s igaming space, said that “participants in games of chance must be able to control the amount in the gambling account”.

Responding to a series of probing questions from Michiel van Nispen of the Socialist Party and Mirjam Bikker of the Christian Union, Weerwind tackled the issues of potential delays to payouts as well as withdrawal cancellations and if a potential cessation of such an option could minimise harms.