SBC News Voice of the Sports Betting Industry
The Kansspelautoriteit (KSA), the Dutch Gambling Authority, has initiated a market-wide investigation into operators’ alleged use of cash back bonuses.
Netherlands gambling laws, with the online market regulated since October 2021 by the KOA Act and subsequent government rulings, states that cashback bonuses are banned.
The KSA had issued a market-wide warning in November 2022 regarding the use of cashback bonuses, but has now launched an investigation after being alerted to the use of one by an unnamed licence holder in August this year.
After taking action and after the operator in question stopped offering cashback bonuses, the KSA took this as a sign that ‘despite the earlier market-wide warning, licence holders still appear to be working with cashback bonuses”.
Cashback bonuses are a common feature of many online gambling offerings in various markets, such as in the UK, but as mentioned above are not permitted under Dutch betting laws.
The KSA explained: “In the Netherlands, bonuses are classified as an advertising activity, and according to the law, advertisements may not encourage immoderate gaming behaviour.
“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.”
Warnings and investigations have been a defining element of the KSA’s regulatory operations in 2023. The regulator most recently issued warnings against three operators regarding breaches of the untargeted advertising ban.
The ban was implemented on 1 July 2023, prohibiting advertising in public spaces, such as on billboards and in bus shelters, gaming casinos, arcades, cinemas and cafes, as well as on broadcast TV and radio.
Meanwhile, the regulator reported shortly after the adoption of the ban that as of July 2023, 32 investigations have been initiated into illegal gambling in the Netherlands.
Having initially launched on 1 October 2021 with 10 licence holders, the Dutch online market has grown to include 24 licenced operators and the KSA expects the sector to grow by 15% annually.
