Dutch Gaming Authority Conducts Market-Wide Research Into Cashback Bonuses

The cashback bonus is a well-known phenomenon in the world of online casinos. In the Netherlands, this form of bonus, where you get part of your loss back afterwards, is not allowed. In the Netherlands, bonuses are classified as an advertising activity, and according to the law, advertisements may not encourage immoderate gaming behavior. In the opinion of the Ksa, this is the case with cashback bonuses. They contribute to taking more risks and lowering the threshold for gambling, for example by playing with higher stakes or playing more often.

First warning

In November 2022, the Ksa ordered all licensed providers of online gambling to stop providing bonuses in the form of cashback. They have been warned by letter that offering a bonus in this form is not permitted. If online providers do not stop immediately, they risk enforcement action by the Ksa.

In August, the Ksa received a signal about a cashback bonus from a license holder. The Ksa therefore immediately took action. After taking action, the permit holder in question immediately terminated the violation. This signal showed that despite the earlier market-wide warning, license holders still appear to be working with cashback bonuses. The Ksa has therefore started a market-wide investigation.

SOURCE: De Kansspelautoriteit (Ksa).