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The Netherlands Gaming Authority (KSA) has sent a warning letter to all licensed operators, urging them not to provide cashback bonus offers to customers.

The authority said cashback bonuses, through which players get back part of their losses, are prohibited in the Netherlands as they encourage players to take more risks.

Moreover, cashback bonuses have a stimulating effect on gamblers that can lead to “excessive participation”, according to the regulator.

Players receiving cashback bonuses would be likely to take more risks by playing with higher bets or playing more often, the KSA said.

The regulator considers player bonuses as an advertising activity, and therefore the general rules regarding advertising activities also apply to bonuses.

According to the law, adverts may not encourage immoderate gaming behaviour, and the KSA is of the opinion that this is the case with cashback bonuses.

“If online providers do not immediately stop providing cashback bonuses, they risk enforcement action by the KSA,” the authority said.

iGaming NEXT understands that operators must end cashback offers by no later than 5 December.

The clampdown on cashback bonuses comes just a few days after the regulator slapped local operator Toto with a €400k fine for marketing directly to young adults aged between 18 and 23.