Legislation News of the Week: Cashback Bonus Ban in the Netherlands, Three Operators Lost MGA License

In Holland, KSA has stepped up its activities in several areas. Meanwhile, three established operators have lost their Maltese licenses. And Denmark reminded companies of the necessary additional checks of clients from gray-listed countries.

No more cashback bonuses for Dutch gamblers

In Holland, all iGaming operators will have to stop incentivizing gamblers through cashback bonuses. The country's regulator de Kansspelautoriteit (KSA) announced this decision in a recent letter.

According to a report by CasinoNieuws, the regulator sent a letter to all gambling licensees operating in the Netherlands and explained that they would no longer be able to use the cashback offers. KSA argued this decision by saying that such bonuses are a form of aggressive advertising and may encourage numerous players to "excessive" money wagering.

The gambling watchdog has warned all operators that they will have to confirm the refusal of cashback bonus offers in writing no later than December 5.

MGA revokes licenses for three operators

Morpheus Games, eGaming Lab, and M-Hub Gaming, which were regulated by the Malta Gaming Authority, lost their licenses. Since these operators failed to pay the license fees, they violated Malta's Gaming Compliance and Enforcement Regulations.

MGA stated that eGaming Lab should transfer €50 083 to its account even though the company had already lost its license. In the case of Morpheus Games, the debt is €80 775. The regulator informed the licensees of its decision on November 29 and gave them five days to pay the license fees.

As for M-Hub Gaming, the supervising body did not say exactly how much money this company should pay. But like the other two businesses, this operator should get rid of any mention of the Authority on its websites.

Serious tax investigation in the Netherlands

The Dutch government declared it was investigating eight gambling operators last year to uncover unpaid taxes. On top of that, authorities plan to launch a similar investigation concerning seven more companies.

The thing is that regulated Dutch online gambling market was launched in October 2021. However, the suspected businesses were operating in the country before that moment while being registered in other jurisdictions so as not to pay taxes.

Essentially, all the involved companies were based and made money in Holland. However, on paper, these gambling brands operated in other countries, which allowed them not to pay tens of millions in taxes to the Dutch budget.

In Denmark, the regulator reminds companies to check gray-listed countries

Licensed Danish operators have received a reminder from the country's regulator Spillemyndigheden. This notice was related to additional checking procedures for customers from gray-listed countries.

The regulator sent out a reminder since the Financial Action Task Force (FATF) updated its list of “black” and “gray” markets last month. Customers from jurisdictions and countries that have been added to this list should be carefully screened to avoid issues regarding terrorist financing and money laundering.

After this latest update, Haiti, Albania, Gibraltar, Panama, United Arab Emirates, and 18 other countries have been gray-listed.

KSA fined Toto Online for illegal advertising

Toto Online, a brand that belongs to the Nederlandse Loterij, has been fined €400 000 for advertising that targeted young adults. According to the KSA, the company advertised its services to its entire customer base from October 2021 to February 1, 2022.

Toto Online has included numerous details about the company and its online gambling offerings in these adverts, including various bonus promotions. However, according to Dutch iGaming law, operators cannot advertise their services to individuals under the age of 23.

KSA stated that Toto Online had to filter out all young adults for its advertising campaign. But since the operator has not done so, it will have to pay the mentioned fine.

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