Kansspelautoriteit (KSA), the Netherlands gaming regulator, says after a market-wide investigation, it will impose restrictions on cashback bonuses, Gambling Insider reported.
Effective immediately, KSA will change the definition of such bonuses by using the term “bonus based on loss.” Such bonuses are considered to violate the Dutch Gambling Act, said KSA.
Cashback bonuses pay players a fraction of their losses. They are illegal in the Dutch jurisdiction because they encourage higher stakes and greater risk-taking. KSA first issued a formal warning to an operator offering cashback bonuses, and warning letters to two others.
“This encourages excessive participation,” said KSA Chairman René Jansen. “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.”
