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Why Has the KSA Age-Gated Loyalty Programs?
By Shane Addinall Jan 03, 2023 LegalityIn addition to the rules that already apply under the Gambling Act in the Netherlands, strict gambling advertising requirements are in place. The Kansspelautoriteit strictly prohibits advertisements that offer loyalty programs to young adults.New rules regarding gambling advertising in the Netherlands are in place, and it’s impacting who can see ads for loyalty programs. Offering savings and loyalty programs online are considered advertising, and operators may not provide these to adults between the ages of 18 and 24 years.
The KSA urged two online operators to stop offering loyalty programs to young adults or risk corrective sanctions. While advertising is permissible in the Netherlands, bonuses and advertisements cannot be directed towards audiences that they consider “young”. The regulator commented, saying:
“The KSA keeps a close eye on the fact that providers do not target advertising activities, such as loyalty programmes, at young adults. If providers do so anyway, they risk enforcement action by the KSA.”
Both operators made the offering available on their websites to all customers online, including young adults. The regulator reported that one operator complied immediately, and the other only complied after threatening an intention to impose corrective sanctions.
What are the Rules?
If you have a license from the Gaming Authority, there are strict requirements for gambling advertising. Unlicensed operators may not advertise at all. Furthermore, as of the 30th of June 2022, the advertising rules under the Dutch Gambling Act have changed when using role models.
These rules are designed to protect vulnerable groups in the community; therefore, advertising may not focus on young adults.
Dutch operators may not use role models, professional athletes, and influencers with a substantial reach among minors or young adults in any advertisement collaboration. Besides the fact that these role models must be 25 years or older, the operator must investigate which target group the role model attracts before working with them.
It also prescribes that no advertisement is allowed in games, on websites, or on applications where games are offered. According to the Media Act 2008, operators may not advertise games of chance on TV between 6 am and 7 pm with different time windows applying to certain gambling offers. The legislator distinguishes between risky and less risky games of chance.
Tight Reigns on Dutch Operators
The Dutch Gambling Authority maintains to keep a watchful eye over the Netherlands' betting space. For example, Online Holland Casino faced a hefty penalty of €5,000 per day in October 2021 for online advertising containing links that led to information about their physical locations. Earlier this year, the KSA hit Toto Online with a €400,000 fine for targeting 18 to 23-year-olds with their product advertisements.
They took regulatory action against several other licensed operators who breached the rules during the run-up to the 2022 FIFA World Cup. One of these operators featured their logo with several well-known Dutch role models in an ad promoting an event.
Amid the growing public and political attention on the Dutch betting industry, the KSA will keep its reigns tight to any infractions by license holders and keep a close eye on all Dutch operators. The KSA age-gated loyalty programs and Dutch operators may not provide cashback offers to customers. Operators who do so will risk enforcement action.
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