Dutch Regulator Tightens Rules on Cashback Bonuses

In a bid to address breaches by licensed operators, the Dutch gambling regulator KSA has made revisions to its regulations regarding cashback-type bonuses. These bonuses, which involve giving players a portion of their losses back, have been a point of contention in the Dutch gambling industry. KSA research uncovered that while Dutch operators could not offer cashback bonuses, some were offering similar bonus schemes linked to losses in alternative ways.

During their investigation, KSA identified three operators offering these types of bonuses. One operator received a formal warning for providing a cashback bonus, while two others were contacted regarding their loss-based bonus offers.

The KSA emphasized that such bonuses can lead to players taking higher risks, as they anticipate recouping some of their losses. To address this issue, the regulator has modified the language in its regulations to refer to "bonuses based on loss." Consequently, any bonus connected to gambling losses now constitutes a breach of market rules.

KSA Chairman René Jansen stated, "This also encourages excessive participation. Players bet higher, take more risks, and play more often, with all its consequences. At KSA, the interests of players are central. A safe gambling market and the prevention of gambling problems are high on our agenda."

The KSA initiated its investigation after receiving reports of bonus rule violations. It asserted that these bonuses were subject to advertising laws and could not promote "excessive" gambling. This investigation followed a directive issued by KSA in November 2022, instructing all Dutch igaming licensees to cease offering cashback bonuses.

The ongoing focus on these bonuses aims to curb problem gambling behavior. Dutch Minister for Legal Protection, Franc Weerwind, introduced new measures in December to protect players, such as mandatory contact with players who set a €350 deposit limit and further research on gaming limits.