In a statement released on its website, the Dutch Gambling Authority, Kansspelautoriteit (KSA), has warned gambling companies against the use of promotional games of chance to attract new customers.
KSA clarifies that all promotions fall under the Netherlands Gambling Act
According to the statement, since the Netherlands launched its legal online gambling market in October 2021, promotional games of chance have grown increasingly popular in the country’s highly competitive market.
The statement explained that ‘promotional games of chance’ refers to contests run by companies that offers potential customers the opportunity to win a prize through games that are mostly based on luck.
The KSA states that:
This is allowed and no permit is required, but special conditions do apply. These can be found in the Code of Conduct for Promotional Games of Chance.
However, the KSA goes on to note that while no permit is required for these types of promotions, the very fact that they are promoting gambling products and services means that they also fall within the stricter advertising rules as set out by the Netherlands Gambling Act.
These stricter conditions include a specific time limit and a stipulation that such contests can only be offered once a year for each product service or organization. They should also be temporary with no more than 20 draws available for each contest.
The KSA sees that gaming providers also use such promotional games of chance to attract more participants,” it said.
“The KSA sees that games of chance providers also use such promotional games of chance to attract more participants. If they do this, they must take into account that the stricter rules according to the Gambling Act and the associated lower regulations apply to them. These are there to protect consumers against the risks associated with games of chance, such as developing gambling addiction. For that reason, advertisements may not, for example, target minors, young adults and other vulnerable groups.”
The statement also notes that the regulator will be monitoring Dutch online casinos and sportsbooks’ promotional campaigns over the coming months and penalizing those that breach the advertising guidelines.
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