The Netherlands gambling regulator, the Kansspelautoriteit (KSA), has addressed the use of “promotional games of chance” in gambling. Per Dutch law, such games do not require a permit but are still required to follow certain rules.
Promotional Games Should Follow Certain Rules
By “promotional games of chance” the KSA refers to bonus contests where people would play for a prize. As an example, the KSA pointed out that promotional codes on the caps of soft drink bottles are exactly what is considered to be a promotional game of chance. Another example is Like & Win games in social media where customers would like a post for a chance to win a promotional prize.
Such games are often a way for companies to improve their brand awareness and promote their products. Because of this, many KSA licensees have adopted the format to popularize their brands and their products.
Dutch law permits companies to run such contests without a permit. However, this doesn’t mean that there are no rules that promo games should follow. Notably, the code of conduct for promotional games of chance applies to all similar contests. As a result, companies cannot use promo games to promote a product, service or organization more than once a year.
In addition, promotional games can only be temporary and cannot have more than 20 draws. Lastly, companies cannot use promotional games to offer prizes for more than $101,000 a year. This means that the more contests a company runs, the smaller the rewards have to be.
The KSA Asked Operators to Thread Lightly
Despite not requiring a permit, promotional contests are considered to constitute gambling. Therefore, companies should be cautious and not overuse them, the KSA cautioned. According to the authority, operators should be extra careful with such offerings.
The regulator said that operators that opt to launch promotional games of chance should take the Gambling Act rules into consideration. The KSA emphasized that these regulations exist to protect customers from the dangers of gambling harm.
Additionally, gambling companies should be extra careful not to target minors with their promotional games, the KSA warned. The authority promised to carefully follow future developments and intervene when necessary.
Yesterday, René Jansen, chair of the Kansspelautoriteit, spoke about the dangers of unlicensed gambling. He said that the KSA is putting a lot of effort into tracking offshore operators and taking appropriate action against such brands.