In the Netherlands, strict regulations have been implemented to curb potentially harmful gambling practices.
Dutch operators are now prohibited from offering cashback bonuses that reimburse players for their losses, as these incentives were found to encourage risky behavior.
Instead, a new term, “bonus based on loss,” has been introduced to clarify that any bonus linked to gambling losses is a violation of market rules.
The Dutch regulator, known as the Kansspelautoriteit (KSA), initiated an investigation last summer after reports of bonus rule violations surfaced.
The KSA’s findings revealed that three operators were offering bonuses associated with losses.
One operator received a formal warning for offering cashback bonuses, while two others were contacted regarding loss-based bonuses.
The KSA expressed concerns that such bonuses enticed players to take greater risks. Players were more inclined to bet higher stakes, knowing that a portion of their losses would be compensated once their funds were depleted.
KSA Chairman René Jansen emphasized the organization’s commitment to player safety and preventing gambling-related issues.
To bolster player protection, the KSA promptly updated its regulations to prohibit any bonuses tied to losses, as these were seen as detrimental to responsible gambling.
The crackdown on banned bonus offers aligns with the KSA’s efforts to create a safer gambling environment.
In November 2022, the KSA instructed all Dutch igaming licensees to cease offering cashback bonuses.
Licensees were given a one-week deadline to confirm their compliance with the ban to prevent “excessive participation.”
To further protect players, the Dutch government introduced additional measures in December.
These measures include mandatory communication with players who have set deposit limits of €350 (£299/$381), informing them of the risks associated with high-stakes gambling.
Additionally, operators are required to display financial amounts in euros, and there is an ongoing push for research into setting overarching gaming limits.
In summary, the Netherlands has taken significant steps to regulate and monitor the gambling industry to ensure player safety and responsible gaming.
By prohibiting bonuses tied to losses and implementing strict rules, the Dutch authorities aim to minimize the negative consequences of excessive gambling and protect vulnerable players.