All Dutch providers have been forced to discontinue cashback bonuses

The Dutch Gambling Authority (KSA) has ordered all Dutch igaming licensees to stop giving cashback offers.

The KSA informed all Dutch igaming licensees in a letter that cashback bonuses are prohibited in the Netherlands since they encourage "excessive engagement."

The letter stated that because bonuses are subject to advertising restrictions, they may not encourage "excessive" gambling.

“De Kansspelautoriteit has recently received signals that there are online licence holders who (want to) offer players a loyalty reward in the form of a cashback on their website,” the letter said. “This is not allowed, because a cashback bonus is a form of advertising that leads to excessive participation.

“A cashback bonus has a game stimulating effect. 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.”

The regulator instructed licensees to affirm in writing that they have ceased offering cashback benefits by December 5th.

Regulation of igaming in the Netherlands

Aside from the announcement on cashback benefits, there have been a number of other significant occurrences impacting Dutch gambling legislation in the last week. De Kansspelautoriteit fined Toto Online €400,000 (£343,793/$415,307) yesterday for targeting advertising to young persons in the country.

According to the KSA, Toto Online, which is owned by Nederlandse Loterij, sent mails to its entire customer base between October 1, 2021, when the Kingdom legalised online gambling, and February 1, this year.

The verdict comes after the KSA initiated action against a number of operators last week, claiming that they had violated numerous standards. According to KSA, the offences occurred in the run-up to the 2022 World Cup.

Last Monday, the Dutch government issued a memo dated 2021, disclosing that a number of internet operators were being investigated for unpaid taxes dating back to when the Netherlands allowed online gambling.

By fLEXI tEAM