The Netherlands Gaming Authority, Kansspelautoriteit (KSA) has announced that it has written to all online gambling operators warning them against the use of cashback bonus offers.
According to the Netherlands’ Remote Gambling Act, this type of bonus is strictly prohibited yet the KSA has found that some betting websites continue to use it as a marketing tactic to attract new users and encourage existing users to place more wagers.
The KSA has also made it clear that any gambling operator that offers any form of bonus that contributes to a customer taking more risks or that lowers the threshold for gambling and encourages higher bets or playing more often is in breach of its licensing conditions.
Bonuses are classified as advertising activity. According to the law, advertisements may not encourage immoderate gaming behavior. In the opinion of the Ksa, this is the case with cashback bonuses.
The KSA went on to add that it had warned all operators of licensed gambling websites in the Netherlands that if they do not stop providing this type of bonus, the regulator will be forced to take action.
The news of the KSA’s warning comes just a few days after it fined online gambling operator Toto Online for sending marketing emails and promotions to young adults aged 18-23.
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