Dutch iGaming Market Regulator to Investigate Illegal Cashback Bonuses

The Netherlands Gambling Authority (Kansspelautoriteit) has announced a move to investigate the use of illegal cashback bonuses in the country's online gaming environment. This comes in response to a recent tip-off about such an offer on a licensed live casino, which later pulled down the bonus after the regulator's intervention.

However, it was highlighted that this led to a market-wide probe due to worries that permit holders disobeyed earlier KSA warnings. In November 2022, the regulator warned all regulated online live casinos to stop offering cashback bonuses.

According to the Dutch Gambling Authority, live casinos that offer a cashback bonus encourage gamers to take more risks by refunding part of their losses. This can lead to more game time for these players or higher stakes.

Casino bonuses are strictly regulated by advertising regulations in the Netherlands, which went into effect on April 1, 2023, along with new license applications. This was six months after the KOA Act took effect in October and re-regulated the Dutch online market.

A tough-talking KSA said:

“They have been warned by letter that offering a bonus in this form is not permitted. If online providers do not stop immediately, they risk enforcement action by the KSA.”

Earlier this month, KSA issued three warnings to regulated casino operators and software providers after witnessing untargeted advertising in public areas. The regulator said that "several providers" had broken the new regulations that had been put in place at the beginning of July. This resulted in banning gaming advertising on TVs, radios, newspapers, and magazines.

The regulator said:

“After receiving the signals, the Ksa immediately requested information from the relevant gambling providers. Following the adequate responses and immediate action, the Ksa issues a warning. The advertisements were stopped after contact with the various providers and were no longer seen.”

Additionally, gambling advertisements are illegal on billboards, bus shelters, or other public structures, such as casinos, slot machine arcades, movie theaters, or cafes. However, under stringent guidelines, advertisements on the internet, direct mail, on-demand TV, social media, or online gaming environments are allowed.