Two Dutch operators warned by KSA over loyalty programmes

Two Dutch operators warned by KSA over loyalty programmes

The Dutch Gambling Authority, the Kansspelautoriteit (KSA), continues to maintain a watchful eye over the Netherlands’ betting space, warning two operators for offering a loyalty programme. 

Both firms have been ordered to stop providing the loyalty programmes, which it asserts have targeted young adults, in violation of KSA licensing requirements.

Loyalty programmes are defined as advertising activities, and in both cases the operators had made the offering available via their respective websites to all customers, including young adults.

Such advertising techniques are permitted in the Netherlands but cannot be directed towards young audiences, defined as consumers between the ages of 18 and 24.

A statement from the regulator read: “The KSA keeps a close eye on the fact that providers do not target advertising activities, such as loyalty programmes, at young adults. If providers do so anyway, they risk enforcement action by the KSA.”

The authority added that one operator ‘complied immediately’ with its request, whilst another was threatened with a ‘corrective sanction’ if it did not comply with the KSA’s request.

Amid growing public and political attention on the Dutch betting industry, especially regarding an uptick in advertising since the regulation of the online market in October last year, the KSA has become increasingly vigilant to any infractions by licence holders.

Earlier this month, Holland Casino found itself under the KSA’s microscope for mobile/web based advertising and recruitment activities – the state-backed operator was told to end all online marketing activity or face a daily €5,000 penalty. 

Meanwhile, during the World Cup operators were encouraged by the authority to avoid a ‘bombardment’ of advertising to limit the potential for political backlash, with the KSA adding that it would remain ‘vigilant’ to any violations during the tournament.

Additionally, licence holders were reminded towards the end of last month not to provide cashbacks as a bonus, adding that firms which do so will risk enforcement action.

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