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Dutch Operators To Stop Offering Cashback Bonuses

All Dutch gambling licensees are no longer permitted to offer cashback bonuses, according to an order from the Dutch gaming regulator de Kansspelautoriteit (KSA).

Dutch Operators Are All Expected To Stop Offering Cashback Bonuses.
Dutch Operators Are All Expected To Stop Offering Cashback Bonuses.

Dutch operators are all expected to stop offering cashback bonuses.

All Dutch gambling licensees are no longer permitted to offer cashback bonuses, according to an order from the Dutch gaming regulator de Kansspelautoriteit (KSA).

According to CasinoNieuws, the KSA informed all Dutch gambling licence holders in a letter that cashback bonuses are not permitted in the country since they may lead to "excessive participation."

The letter argued that since bonuses are exempt from advertising regulations, they cannot be used to encourage "excessive" gaming.

"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 licencing authority informed licensees that they had until 5 December to affirm in writing that they had ceased offering cashback bonuses.In addition to the statement regarding cashback bonuses, there have been a number of other significant occurrences involving Dutch gambling legislation over the past week. De Kansspelautoriteit fined Toto Online €400,000 (£343,793/$415,307) yesterday for directing its advertising toward young individuals in the country.

The KSA claimed that between 1 October 2021, when the nation started its legal online gambling industry, and 1 February of this year, Toto Online, which is controlled by Nederlandse Loterij, sent emails to all of its customers. The decision comes after the KSA took action against several operators last week after determining they had infringed numerous rules. According to KSA, the crimes were committed in the years leading up to the 2022 World Cup.

The Dutch government also disclosed in a 2021 letter that some internet operators were being looked into for unpaid taxes before the Netherlands allowed online gambling.

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