The KSA urges operators against using loyalty systems to target young adults

Kansspelautoriteit (KSA), the Dutch gambling authority, has issued a warning to two operators for marketing loyalty programmes to young individuals.

The KSA did not reveal the identities of either operator, but the Dutch regulator did note that one provider complied swiftly and withdrew its programme, while the other had to be persuaded to shut its plan with a threat of regulatory action.

Both providers made the loyalty programmes available to all gamers, including young adults, on their own websites. Such programmes and efforts are classified as advertising in the Netherlands and should not be targeted at young adults, prompting the regulator to call each licenced operator to inquire about their actions.

While neither programme paid out any accumulated balances, the KSA noted that they both provided consumers with the chance to save. According to the Dutch regulation, this is also classified as advertising in the country and hence should not be targeted at young adults.

“The KSA closely monitors that providers do not target advertising activities, such as loyalty programs, at young adults,” the regulator said. “If providers do so anyway, they risk enforcement action by the KSA.”

Duty of care investigation in the Netherlands

The fresh warnings follow last week's announcement by KSA chair René Jansen that the regulator has opened an inquiry into operators it believes are failing to execute duty of care for its players.

Jansen stated at the 2022 Amsterdam Gaming & Awareness Congress 2022 that the regulator was trying to implement obligatory maximum restrictions on gambling spend, a matter he had previously explored.

Players are currently forced to choose a deposit limit, however there is no defined maximum, allowing them to establish a very large limit.

Furthermore, Jansen stated that he believed a number of Dutch-licensed operators had breached their duty of care to their customers. As a result, he stated that the regulator had initiated a "wide-ranging examination" into how operators carry out their duty of care.

By fLEXI tEAM