KSA Intensifies Scrutiny on Cashback Bonuses in the Dutch Online Gaming Sphere

Dutch KSA amplifies crackdown on illegal cashback bonuses. We also explain what the cashback promo offers Livecasinocentral players! (Photo by Skitterphoto on Pexels)

Kansspelautoriteit (KSA), the Dutch gambling regulatory body, is ramping up its investigation within the online gaming industry of the Netherlands, focusing on cashback bonuses offered by licensed operators. These offerings, prohibited under Dutch law, have again been spotlighted due to recent violations. The KSA aims to foster responsible gaming by enforcing these bans rigorously.

The recent initiatives from KSA came to light following the discovery of a licensed operator flouting the laws by providing cashback bonuses to its clientele. This infraction led to the immediate termination of the promotion, igniting concerns over the potential widespread non-compliance among other online gambling firms in the region. The KSA spearheads an exhaustive inquiry to uncover other entities breaching the established rules.

November of last year marked a decisive move by the KSA, issuing explicit instruction to all certified online gambling houses to halt any cashback bonus promotions. These bonuses, deemed as advertisements by Dutch legislation, are strictly forbidden. This ban is primarily enforced to curb gambling-related issues and foster an environment of responsible gaming. The KSA is unyielding in its stance to uphold these principles, encouraging a just and accountable gaming atmosphere.

What is a cashback bonus? The casino will return some of your losses. For example, Cadoola Live Casino offers a 25% live casino cashback with just 1x wagering. Therefore, 25% of your losses playing live games are returned every week. You can earn up to €/$200 / C$300 / NZ$400 / INR16,000 maximum.

Are Cashback Bonuses Allowed in Other Jurisdictions?

The answer is yes if we consider cashback promos on platforms under the UKGC, MGA, AGCO, and Curacao licensing covered here on Livecasinocentral. Cashback deals are allowed. Why the KSA has taken such a harsh view of these offers when other jurisdictions don’t is strange.

One reason is probably because the KSA feels that cashback encourages people to make less informed bets or take more risks than they would if no cashback on their losses were available.

The KSA is unflinching in its mission to maintain a level playing field, ensuring all gaming entities comply with the set regulations. The body’s persistent vigilance aids in the swift detection and amendment of any regulatory violations, solidifying its commitment to overseeing all facets of online gambling.

This dedication is evident in their recent stern reactions towards non-compliance.

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Maintaining a Vibrant and Secure Market

The steadfast regulatory supervision is crucial in preserving the reputation of the Netherlands as a haven for gamblers in Europe. Earlier this month, the authority cautioned numerous operators in breach of the nation’s newly imposed restrictions on indiscriminate gambling advertisements. Thankfully, the issue was resolved swiftly, with the promotional content being withdrawn, negating the necessity for financial penalties.

However, this rigorous scrutiny has its setbacks. For instance, the Betsson Group retracted its application for a Dutch license, citing the protracted and expensive process as the primary reason. Yet, the emphasis remains on safeguarding the consumer, fostering a protected space where individuals can indulge in online gaming activities responsibly and without undue influence.

The ongoing prohibition on cashback bonuses exemplifies KSA’s relentless efforts to monitor operators closely. This enforcement accentuates the necessity for maintaining superior industry norms that are uniformly applicable to all participants within the market. These measures are pivotal in ensuring that the Netherlands continues flourishing as a sustainable and prosperous online gambling hub, benefitting both the operators and the gaming community.

What to know more about casino licensing? The best live casino sites help guide covers how to choose the best casino for live dealer gaming and also explains licensing for various jurisdictions. On top of this, you will find a pathway to portals dedicated to Canada, the UK, Ireland, India, South Africa, New Zealand, and South Africa.