The Netherlands’ gambling regulator has given one operator a formal warning as it cracks down on cashback bonuses given to players in the result of a loss.
The move comes after market-wide research by Kansspelautoriteit, which has resulted in cashback bonuses being more clearly defined by the regulator.
The KSA said that having taken a stronger stance on cashback bonuses, it has given one operator a formal warning for offering such a promotion.
“In the Netherlands, these bonuses, where you get part of your loss back afterwards, are not allowed,” it said.
“They contribute to taking more risks and lowering the threshold for gambling, for example by playing with higher stakes or more often.”
Meanwhle, letters have been sent to two other licensees which clarify the regulator’s position on offering bonuses on a wider scale.
The KSA said: “The recent research makes it clear that there are many different forms of bonuses linked to losses. In addition to the illegal cashback bonuses, the Ksa discovered bonuses where the provider does not immediately pay out part of the loss, but compensates for the loss in some other way.”
KSA chairman René Jansen added: “This also encourages excessive participation. Players bet higher, take more risks and play more often. With all its consequences. At the KSA, the interests of players are central.
“A safe gambling market and the prevention of gambling problems are high on our agenda. To protect players even better, we immediately clarify the definition as a basis for strict supervision. Any bonus that is in any way linked to a loss is prohibited.”
