KSA calls for immediate end to "cashback" bonuses
Sanctions will be imposed if operators do not comply ahead of further advertising restrictions expected in 2023
The Netherlands Gambling Authority (KSA) has urged all licensed operators to cease offering “cashback” as a bonus incentive as it contravenes the country’s advertising regulations.
In the Netherlands, bonuses are considered marketing activity, however, according to the law, advertising must not encourage “immoderate gambling” to audiences.
“Cashback” bonuses offer money back as a percentage of amount staked and is thought to encourage more risk taking by the player.
Examples cited by the KSA, in a statement released on 29 November, include higher stakes or more frequent betting.
The KSA has introduced an immediate deadline to end offering “cashback” bonuses and has warned that operators will risk sanctions against them should they fail to comply.
The latest announcement from the KSA comes amid a raft of potential changes to the advertising landscape in the Netherlands – to be introduced in 2023 – proposed by Minister for Legal Protection Franc Weerwind.
This will include a restriction on all untargeted marketing materials preventing adverts from appearing on radio, TV and in public spaces.
Sporting event sponsorship and shirt sponsorships will also be phased out by 2026.
The announcement comes four days after Toto Online was slapped with a €400,000 (£345,500) fine for sending marketing materials to young adults aged between 18 and 23.