The Netherlands’ regulator of gaming services, De Kansspelautoriteit (KSA), has reportedly sent a letter to licensed online sportsbook operators and requested that they discontinue providing cashback offers. The regulator reminded its licensees that such offerings are prohibited in the jurisdiction.
In a recent letter, De Kansspelautoriteit indicated that there are online license holders who try to provide players with loyalty bonuses to encourage excessive involvement. Such a bonus is not permitted because it encourages excessive involvement, which is not allowed under Dutch law.
The licensing authority has informed operators that they must officially confirm by December 5 that they no longer offer cashback bonuses.
Kansspelautoriteit, also known as the Dutch Gambling Authority, is the regulatory body entrusted with overseeing and regulating gambling activities in the Netherlands. Committed to ensuring fair play, consumer protection, and responsible gambling, Kansspelautoriteit holds a pivotal role in shaping the country’s gambling landscape. Through licensing, enforcement, and collaboration with stakeholders, the authority seeks to maintain a safe and transparent gambling environment for both operators and players.
The memo also suggested that cashback bonuses have a motivating effect on games. For example, a player who loses $10 might be given $2 back as a cashback bonus. This partially compensates him for his loss, encouraging him to play more. Additionally, among players who are vulnerable to addiction and susceptible to misconceptions about the nature of gambling, this may lessen their perception of the risk associated with betting.
