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In a letter addressed to suppliers in the Dutch market, the regulatory body has warned that this kind of bonus solution or feature is illegal in the Netherlands and should not be supplied to local operators.
The KSA notes that cashback bonuses allow players to win back part of their losses, which contributes to taking more risks as it lowers the financial threshold to gamble.
The authority adds that this kind of bonus can, therefore, prompt players to place higher bets and play more often.
As part of Dutch law, bonuses are classified as a form of advertising activity, and ads cannot encourage immoderate gaming behaviour.
The KSA reaffirms its belief that cashback bonuses constitute such immoderate behaviour, and warns online providers that if they do not stop providing cashback bonuses immediately, they risk enforcement action.
Earlier this month, the KSA began its investigations into websites promoting illegal online games of chance.
The authority noted that it came across “so-called affiliate websites” when tracing illegal gambling offers, explaining that such sites get paid when they provide web traffic to illegal gambling websites.
These “affiliates” use domain names such as ‘casinowithoutcruks’ and ‘casinowithoutlicense.’
And in September this year, the KSA approved the request of Holland Gaming Technology to offer games of chance on the internet.
This was the 22nd licence the KSA has awarded in the Netherlands and came swiftly after Smart Gaming was given the go-ahead to become the country’s 21st licence holder.
