The Dutch Gaming Authority (KSA) has recently conducted a study focusing on cashback bonuses within the online gambling sector. The findings underscore the necessity for heightened regulatory measures targeting operators who provide loss-based bonuses.
Ivan Kurochkin, Partner and Head of Eastern Europe Desk at 4H Agency, comments on the situation:
"Cashback bonuses operate on a simple premise: players receive a portion of their losses refunded in the form of cash credited to their accounts. While these bonuses are prohibited in the Netherlands, the KSA asserts that they foster an environment where customers are incentivized to engage in more extensive and riskier gambling behaviors. This could involve placing larger bets or opting for wagers with unfavorable odds, with the assurance that a portion of their losses will be compensated.
The issue of bonuses is related to the rules of responsible gambling. The general trend on the European continent is to ban such bonuses in various forms.
Thus, different approaches to the regulation of bonuses can be distinguished: i) complete prohibition; ii) partial prohibition (bonuses for the first game); iii) mixed (allowing bonuses on the premises or operator's website). However, the general trend is to implement responsible gambling rules and to limit how bonuses influence players.
On the other hand, as the Danish practice shows, the strict regulation of bonuses leads to players playing on the sites of non-licensed operators, where there are big bonuses. As a conclusion, this does not reduce the level of negative impact on players.
From our point of view, the approach to regulating bonuses depends on the choice of a particular jurisdiction. However, such a choice should take into account the presence of offshore gambling that offers such bonuses. Bonus abuse undermines the fundamental principles of fairness and integrity within the online gambling sector, fostering an unjust atmosphere for legitimate players and corroding trust in the platform's services".
Ivan Kurochkin, Partner and Head of Eastern Europe Desk at 4H Agency, comments on the situation:
"Cashback bonuses operate on a simple premise: players receive a portion of their losses refunded in the form of cash credited to their accounts. While these bonuses are prohibited in the Netherlands, the KSA asserts that they foster an environment where customers are incentivized to engage in more extensive and riskier gambling behaviors. This could involve placing larger bets or opting for wagers with unfavorable odds, with the assurance that a portion of their losses will be compensated.
The issue of bonuses is related to the rules of responsible gambling. The general trend on the European continent is to ban such bonuses in various forms.
Thus, different approaches to the regulation of bonuses can be distinguished: i) complete prohibition; ii) partial prohibition (bonuses for the first game); iii) mixed (allowing bonuses on the premises or operator's website). However, the general trend is to implement responsible gambling rules and to limit how bonuses influence players.
On the other hand, as the Danish practice shows, the strict regulation of bonuses leads to players playing on the sites of non-licensed operators, where there are big bonuses. As a conclusion, this does not reduce the level of negative impact on players.
From our point of view, the approach to regulating bonuses depends on the choice of a particular jurisdiction. However, such a choice should take into account the presence of offshore gambling that offers such bonuses. Bonus abuse undermines the fundamental principles of fairness and integrity within the online gambling sector, fostering an unjust atmosphere for legitimate players and corroding trust in the platform's services".
Ivan Kurochkin, Partner and Head of Eastern Europe Desk at 4H Agency, comments on the situation:
"Cashback bonuses operate on a simple premise: players receive a portion of their losses refunded in the form of cash credited to their accounts. While these bonuses are prohibited in the Netherlands, the KSA asserts that they foster an environment where customers are incentivized to engage in more extensive and riskier gambling behaviors. This could involve placing larger bets or opting for wagers with unfavorable odds, with the assurance that a portion of their losses will be compensated.
The issue of bonuses is related to the rules of responsible gambling. The general trend on the European continent is to ban such bonuses in various forms.
- In Ukraine, gambling operators are prohibited from providing bonuses, gifts, or services to players in case they lose (in other cases, bonuses are allowed). Ukrainian legislation contributes to the implementation of responsible gambling rules and reduces the negative impact on players.
- In Denmark, on September 7, 2022, a study was published research, and one of the main focuses was a ban on player bonuses. Based on a recent report by the regulator Spillemyndigheden in 2024, it was found that unlicensed operators have the bonus problem mostly. 25,7% of individuals said they played on these sites because of the higher bonuses.
- In Sweden, gambling operators, other than the operators of games for public benefit purposes, may offer a bonus only on the first occasion of the player playing one of the operators’ games. Such a move by Swedish law can be explained by fair marketing, however, it is otherwise prohibited to provide bonuses.
- In Romania, promoting bonuses to participants is only allowed on the organiser's own website or locations, on the affiliates’ websites, and/or through sending electronic messages to players holding active accounts in the operator's database, provided that players have given their prior consent to receive such messages. This decision of the Romanian legislation favors marketing on the one hand and protects the participants, on the other hand.
Thus, different approaches to the regulation of bonuses can be distinguished: i) complete prohibition; ii) partial prohibition (bonuses for the first game); iii) mixed (allowing bonuses on the premises or operator's website). However, the general trend is to implement responsible gambling rules and to limit how bonuses influence players.
On the other hand, as the Danish practice shows, the strict regulation of bonuses leads to players playing on the sites of non-licensed operators, where there are big bonuses. As a conclusion, this does not reduce the level of negative impact on players.
From our point of view, the approach to regulating bonuses depends on the choice of a particular jurisdiction. However, such a choice should take into account the presence of offshore gambling that offers such bonuses. Bonus abuse undermines the fundamental principles of fairness and integrity within the online gambling sector, fostering an unjust atmosphere for legitimate players and corroding trust in the platform's services".
Ivan Kurochkin, Partner and Head of Eastern Europe Desk at 4H Agency, comments on the situation:
"Cashback bonuses operate on a simple premise: players receive a portion of their losses refunded in the form of cash credited to their accounts. While these bonuses are prohibited in the Netherlands, the KSA asserts that they foster an environment where customers are incentivized to engage in more extensive and riskier gambling behaviors. This could involve placing larger bets or opting for wagers with unfavorable odds, with the assurance that a portion of their losses will be compensated.
The issue of bonuses is related to the rules of responsible gambling. The general trend on the European continent is to ban such bonuses in various forms.
- In Ukraine, gambling operators are prohibited from providing bonuses, gifts, or services to players in case they lose (in other cases, bonuses are allowed). Ukrainian legislation contributes to the implementation of responsible gambling rules and reduces the negative impact on players.
- In Denmark, on September 7, 2022, a study was published research, and one of the main focuses was a ban on player bonuses. Based on a recent report by the regulator Spillemyndigheden in 2024, it was found that unlicensed operators have the bonus problem mostly. 25,7% of individuals said they played on these sites because of the higher bonuses.
- In Sweden, gambling operators, other than the operators of games for public benefit purposes, may offer a bonus only on the first occasion of the player playing one of the operators’ games. Such a move by Swedish law can be explained by fair marketing, however, it is otherwise prohibited to provide bonuses.
- In Romania, promoting bonuses to participants is only allowed on the organiser's own website or locations, on the affiliates’ websites, and/or through sending electronic messages to players holding active accounts in the operator's database, provided that players have given their prior consent to receive such messages. This decision of the Romanian legislation favors marketing on the one hand and protects the participants, on the other hand.
Thus, different approaches to the regulation of bonuses can be distinguished: i) complete prohibition; ii) partial prohibition (bonuses for the first game); iii) mixed (allowing bonuses on the premises or operator's website). However, the general trend is to implement responsible gambling rules and to limit how bonuses influence players.
On the other hand, as the Danish practice shows, the strict regulation of bonuses leads to players playing on the sites of non-licensed operators, where there are big bonuses. As a conclusion, this does not reduce the level of negative impact on players.
From our point of view, the approach to regulating bonuses depends on the choice of a particular jurisdiction. However, such a choice should take into account the presence of offshore gambling that offers such bonuses. Bonus abuse undermines the fundamental principles of fairness and integrity within the online gambling sector, fostering an unjust atmosphere for legitimate players and corroding trust in the platform's services".
