KSA investigation prompts stricter measures on loss-based bonuses
Following a market-wide investigation into cashback bonuses, the Dutch Gaming Authority (KSA) has announced a shift in terminology to address and regulate these incentives.
The investigation revealed that the existing definition required clarification, leading the KSA to adopt the term ‘bonus based on loss.’ This redefinition is effective immediately, as the KSA deems all forms of such bonuses to be in conflict with the Dutch Gambling Act.
Cashback bonuses, widely recognised in the realm of online casinos, operate on a loss-based model where players receive a portion of their losses back after gameplay.
In the Netherlands, however, these bonuses are prohibited due to concerns that they encourage increased risk-taking and lower the threshold for gambling behaviour, potentially leading to higher stakes or more frequent play.
In response to the investigation’s findings, the KSA issued a formal warning to one licence holder found offering a cashback bonus. Additionally, two other licence holders received a letter from the KSA, clarifying its stance on various bonus structures, including those compensating for losses in ways other than direct cashback.
With regard to these loss-based incentives, KSA Chairman René Jansen stated: “This encourages excessive participation. Players bet higher, take more risks and play more often.
“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.”
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