In a step that could affect how cashback bonuses are defined and referenced in the future, the Gambling Authority (Kansspelautoriteit (Ksa) has conducted a comprehensive market-wide investigation into the use of cashback bonuses. The result of this research is therefore one that necessitates clarifying this definition to refer to it as 'a bonus based on loss'. This new definition will come into effect as soon as possible, as according to Ksa, all forms of this bonus violate the Gambling Act (Wok).
What is cashback bonus
An idea of a cashback bonus is familiar to many players who play in online casinos. This type of bonus is provided based on your losses. It is important to note that such bonuses are not allowed in the Netherlands, as they encourage more risk-taking and lower the gambling barrier, for example through bigger bets or higher frequency of play.
Following the investigation, the Ksa sent a warning letter to a licence holder that provided cashback bonuses. In connection with the bonus system, the Ksa sent letters to two other licence holders to explain its position. The operators concerned had offered promotions offsetting losses, but not in the form of cashbacks.