The authority’s recent actions came in response to a licensed operator offering clients cashback bonuses. Dutch law prohibits such practices, forcing the offending entity to terminate the promotion. However, the incident raised significant concern that other gambling companies may also be violating the ban, prompting an in-depth investigation by the KSA.
Violations May Be More Common than Expected
November 2022 saw the KSA issue a clear directive to all licensed online gambling providers, mandating the cessation of offering bonuses in the form of cashback. According to Dutch law, these bonuses are classified as advertising and are strictly prohibited. The primary rationale behind this ban is to prevent problem gambling and promote responsible gaming practices.
A recent incident involving a licensed entity offering cashback bonuses led to a broader investigation by the KSA. This market-wide examination aims to identify any other permit holders who may violate the ban. According to the regulator, offenders who do not immediately cease the practice risk enforcement action for endangering the public.
(Cashback bonuses) contribute to taking more risks and lowering the threshold for gambling, for example, by playing with higher stakes or playing more often.
Kansspelautoriteit statement
The KSA is determined to ensure that all operators adhere to the established rules, promoting a fair and responsible gaming environment. Kansspelautoriteit’s ongoing vigilance and proactive approach help the authority promptly identify and rectify regulatory breaches. This commitment extends to all aspects of online gambling, prompting the recent harsh response.
Regulatory Vigilance Remains Paramount for a Healthy Market
A robust regulatory environment remains vital to the Netherlands’ status as one of Europe’s safest gambling markets. Earlier this month, the KSA warned several gambling operators for violating the country’s recent restrictions on untargeted gambling advertisements. The affected promotional material ceased to appear following regulatory intervention, resolving the issue without the need for fines.
While scrutiny remains vital to a healthy gambling ecosystem, it also poses some drawbacks. Betsson Group recently withdrew its application for a Netherlands license as the process proved too lengthy and costly. Despite such cases, consumer safety must remain a priority for any regulator, creating a safe ecosystem where players can enjoy online gaming responsibly and without pressure.
The ban on cashback bonuses is just one aspect of KSA’s mission to keep operators in check. The regulator’s enforcement efforts underscore the importance of maintaining high industry standards that apply equally to all industry stakeholders. Such initiatives help the Netherlands remain a thriving and sustainable online gambling market that benefits operators and players.