The Kansspelautoriteit (KSA), the Dutch gambling authority, has launched an investigation into the online casino industry following claims of unauthorised bonuses and promotions.
The use of cashback bonuses was first challenged by the KSA in November 2022, when the gambling body sent out letters to online operators.
These letters explained that cashback bonuses were not permitted on online platforms where Dutch players could access them.
If the operators continued to offer such promotions, they would risk enforcement actions by the KSA.
In its statement, the KSA said: “Bonuses are classified as advertising activity in the Netherlands, and according to the law, advertisements may not encourage intemperate gaming behaviour.
“In the opinion of the KSA, this is the case with cashback bonuses.
“They contribute to taking more risks and lowering the threshold for gambling, for example by playing with higher stakes or playing more often.”
As for advertising in the Netherlands, the ban on untargeted adverts for gambling came into effect on 1 July.
This means that no casino adverts can be displayed in a public place or broadcast service, including billboards, TV or magazines.
Online advertising is still under strict regulation, and as such, the KSA has asked operators not to push boundaries while the new rulings come into force.
However, the KSA had to intervene in August when it found that a licensee was advertising using a cashback bonus.
Although the licensee stopped the bonus immediately when approached by the KSA, it has raised questions as to whether the market-wide warnings were effective.
The gambling authority will now conduct a full investigation into the online casino industry.
Earlier this summer, the KSA released a full update on all the illegal gambling investigations conducted so far this year.
