Kansspelautoriteit Chair Rene Jansen has warned operators regarding cashback bonuses, stating that “any bonus that is in any way linked to a loss is prohibited”.
Jansen’s message comes after the Dutch gaming authority released the results of market-wide research into cashback bonuses, where they stated that they will now be defined as ‘“a bonus based on loss” as “all forms of this type of bonus are in conflict with the Gambling Act”.
The KSA noted that bonuses where players receive part of their loss back as a bonus are not allowed in the Netherlands, as they “contribute to taking more risks and lowering the threshold for gambling”.
Following its investigation, the authority issued a formal warning to one licence holder for offering a cashback bonus, in addition to sending a letter to two other licence holders regarding bonuses “in which losses were compensated in some way other than through a cashback”.
In conclusion, the KSA determined that several bonus types are linked to losses, including cashback bonuses, as well as “bonuses where the provider does not immediately pay out part of the loss, but compensates for the loss in some other way”.
Jansen noted: “This also encourages excessive participation. Players bet higher, take more risks and play more often. With all its consequences.
“At the Ksa, the interests of players are central. A safe gambling market and the prevention of gambling problems are high on our agenda. To protect players even better, we immediately clarify the definition as a basis for strict supervision. Any bonus that is in any way linked to a loss is prohibited.”
Last month, the KSA issued a warning regarding untargeted TV programme advertising after intervening with an unnamed legal gambling provider which advertised during a TV game show.