The gaming authority Ksa recently received a letter from the organisation stating that cashback bonuses are prohibited. The Ksa stated in the letter that no bonus in this form is allowed. They also stated that providing bonuses in this way is illegal in the Netherlands. The regulatory body made this statement in a personal letter to all practising lawyers. According to them, cashback is against the law because it promotes excessive participation.

What is a caskback bonus?

Cashback bonuses give players a portion of the money they lose back with a fixed time each week or month. Cashback bonuses encourage players to take more risk and gamble less. For example, a person may play with bigger bets or play more often if he or she has received a cashback bonus. This is because cashback bonuses reduce the damage caused by gambling by offsetting some of the losses.

Cashback bonuses encourage bad behaviour when it comes to excessive gaming. According to the Ksa, they are therefore classified as advertising activity.

The Ksa can penalise providers who offer cashback bonuses that are not immediately discontinued.