KSA takes harder look at cashback bonuses after red flags emerge

The Dutch Gaming Authority (KSA) has been alerted to the misuse of cashback bonus offers which has triggered an investigation by the watchdog. The authority has said that the practice of cashback bonusing has been a well-established one, but it is still part of the country’s overall gambling framework and when utilized, this form of inducement must follow a strict advertisement code.

Cashback bonuses, for example, cannot be utilized to incentivize what the authority has described as "immoderate" gambling behavior. The KSA has noted that bonuses can reduce inhibitions and prompt players to overspend to the point of harm. Now, the regulator is doubling down to see if cashback bonuses have been phased out as ordered by the regulator in November 2022.

At the time, the KSA has ordered licensed operators to stop using cashback bonuses as it found them to be harmful to consumers. Presently, the KSA is only issuing a warning to any operator that may have been using such bonus offers, but the regulator will act firmly should it enforce the advertisement standard.

The KSA noted that it already had to step in in a case involving a certain license holder. After being alerted to the use of cashback bonuses, the KSA contacted the offending party and ordered the promotion to be discontinued. This happened in August and the licensee holder was willing to collaborate.

However, the authority has now taken a much stricter approach to checking for potential omissions in the bonusing policy of individual operators. The regulator is issuing one final warning to stakeholders before going after potential offenders.

The KSA has recently issued another similar warning to licensed operators, cautioning them against using physical spaces to push untargeted advertisements onto consumers. As a whole, the KSA has been very strict about upholding gambling laws and ensuring that consumers are protected.

The Netherlands as a whole has had a very robust approach towards regulation, asking licensees to uphold some of the highest standards of consumer protection in Europe, including the forgoing of unsolicited bonus offers and the targeting of individualsunder the age of 24.

There has even been a popular personality ban which essentially forbids gambling licensees to use the image and likeness of people who may appeal to younger people and bring them into the gambling fold.

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