(PRESS RELEASE) -- The Dutch Gaming Authority recently conducted a market-wide study into cashback bonuses. The outcome of this study is reason enough to clarify this definition and to refer to it as 'a bonus based on loss'. The new definition will be enforced with immediate effect, because according to the Ksa, all forms of these types of bonuses are in violation of the Gambling Act (Wok).
The cashback bonus is a well-known phenomenon in the world of online casinos. This is a loss-based bonus. In the Netherlands, these bonuses, where you get part of your loss back afterwards, are not allowed. They contribute to taking more risks and lowering the threshold for gambling, for example by playing with higher stakes or more often.
Based on the results of the investigation, the Ksa sent a formal warning to one license holder for offering a cashback bonus. The Ksa has sent a letter to two other licensees in which it clarifies its position with regard to bonuses. In their case, these were bonuses where losses were compensated in a way other than through a cashback.
Ksa clarifies positionThe recent research makes it clear that there are many different forms of bonuses associated with loss. In addition to the illegal cashback bonuses, the Ksa discovered bonuses where the provider does not directly pay out part of the loss, but compensates for the loss in another way.
KSA chairman René Jansen:
"This, too, encourages immoderate participation. Players bet higher, take more risks, and play more often. With all the consequences that entails. At the Ksa, the interest of players is central. A safe gambling market and the prevention of gambling problems are high on our agenda. In order to better protect the players, we are immediately clarifying the definition as a basis for strict supervision. Any bonus that is in any way linked to loss is prohibited."