Operators have been advised that Dutch gambling regulations ban cashback bonuses.
The Netherlands.- The Dutch regulator de Kansspelautoriteit (KSA) has ordered online gambling operators to cease offering cashback bonuses. It says such offers are banned under Dutch law because it is believed that they promote excessive participation.
The Dutch industry news site CasinoNieuws has reported that the KSA has sent a letter to all igaming licensees in the Netherlands the clarify the legal situation. Noting that such bonuses are banned under advertising laws, it asked operators to respond in writing by December 5 to confirm they have stopped cashback bonuses.
“De Kansspelautoriteit has recently received signals that there are online licence holders who offer players a loyalty reward in the form of a cashback on their website. This is not allowed, because a cashback bonus is a form of advertising that leads to excessive participation,” the letter states.
It continues: “Offering a bonus where a player gets back part of his loss contributes to taking more risk. In addition, the bonus may reduce the perceived risk of gambling among players who are vulnerable.”
Earlier this week, the KSA announced it had fined Toto Online €400,000 for sending gambling advertising to young adults. The Netherlands forbids operators from advertising to anyone under the age of 23, but the KSA found that Toto Online had been sending emails to its entire customer base.
The breaches of the Netherlands’ rules on advertising occurred from the launch of the country’s regulated online gambling market at the start of October last year until February 1 this year. Toto Online sent out emails containing information on its gambling offering, including its bonus offer.
Meanwhile, it’s emerged that at least eight gambling operators are being investigated for potentially owing millions in tax payments for operations in the Netherlands prior to the regulation of online gambling. The government believes operators should pay taxes on money made before gambling was regulated.