KSA lays out new guidelines on net deposit limits

The Netherlands Gambling Authority (KSA) has urged operators to follow “capacity to pay assessments” when means testing players against monthly deposit limits.

Since 1 October 2024, licensed operators in the Netherlands have been required to conduct checks on customers over the age of 24 when they deposit more than €700 (£582). Those levels drop to €300 for those aged 18 to 24.

The regulator requires operators to check if customers can afford to go over these limits, and following a study of existing practices, has outlined how operators should go about performing duty of care in this regard.

Emphasising some firms already do go beyond the regulations introduced last year, the regulator published a document outlining six good practices for operators to follow, alongside seven bad practices to avoid.

The first of the six positive policies is that young adults should not have their net deposit limit increased beyond €300 a month as it “offers extra protection to this vulnerable target group”.

The KSA noted that operators should also provide players with the option for daily and weekly limits, while setting a “hard limit” at €300 has also been encouraged.

The regulator added that using a lower percentage to determine recreational income for young people, as opposed to a standard 30%, would serve as another positive step.

The body also called on firms to correctly record and retain past assessment to allow audits.

Further, operators should allow 5% of a players’ liquid assets, divided by 12 months, to be included in the calculations, as it would prevent customers from losing large amounts of their liquid assets over a short time frame.

Under bad practices, the KSA urged operators to carefully check and ensure the following mistakes are not made, starting with insufficient verification of income data.

Listing income statements, plausibility tests and questionnaires as “insufficient”, the regulator specified that pay slips and income tax returns are examples of the correct supporting documents to be used for verification.

Receipts, such as ones that show money that has been borrowed or child support, as well as the income of a player’s partner or child, should not be accepted as a source of income.

Should a player exceed their net deposit limit, the KSA guide recommended a deposit block of at least 30 days, not just until the end of a given calendar month as has been evidenced.

Additionally, with players not being allowed to deposit money with different operators after they have exceeded their limit with another operator, the regulator’s guidelines stated that firms must “immediately apply an automatic block after exceeding the net deposit limit”.

Non-liquid assets such as surplus value of a house must not be included, but savings can be, the KSA added.

The regulator also warned against incorrect analysis of supporting documents and incorrect calculations as new standards for operators to uphold.

A KSA statement read: “The information provided makes the assessment process clearer for providers and prevents players from setting excessively high limits that they actually cannot afford.

“The KSA continues to closely monitor the correct implementation of the ability to pay test.”