The European Gaming & Betting Association has once again urged Norwegian lawmakers to craft a “modern, open to competition” gambling regulation framework as a consultation on recently proposed restrictions in relation to the provision of remote gambling services in the country has entered its concluding stages.
Under the proposed measures, the Norwegian Gaming Authority, Lotteri-og Stiftelsestilsynet, will have its powers extended in a manner that would allow it to compel local banks to block any gambling-related transactions. Norway’s banks are already prohibited from directly processing payments on behalf of unlicensed gambling companies under the Norwegian Payment Blocking Regulation from 2010. The new rules will also ban the financial institutions from handling any transactions to and from payment services companies that act on behalf of international gambling operators.
Regulated gambling services are provided in Norway only by the two state-run operators Norsk Tipping and Norsk Rikstoto. However, foreign companies have been targeting local players for years, exploiting loopholes in the country’s existing gambling regulations. The new set of measures, which was introduced this past spring and was tabled for a review by both country lawmakers and EU regulators, aims to close those major loopholes in a manner that would restrict the provision of gaming and betting services to just the above-mentioned two entities.
EGBA’s Most Recent Statement
Following the introduction of the regulatory proposals, EGBA, which represents several of Europe’s major gambling companies, announced that it would challenge legally Norway’s payment blocking plans and its restrictive gambling regime.
In a statement from earlier today, the association once again called for the implementation of a modern licensing system in the Scandinavian country, one that is believed to be a better tool for the effective protection of gambling customers.
According to EGBA, the proposed payment blocking regulations are not “a realistic or effective measure to control Internet activity” as they are easy to circumvent, impossible to enforce upon local banks, and “create an artificial market” by ring-fencing the country for EU-licensed payment service companies. The association went on to say that it believes the new rules might be running afoul Norwegian and EU laws.
In its statement, EGBA called for the re-regulation of the Norwegian gambling market in a manner that would allow international operators to obtain licenses from the local regulator and operate in a regulated environment. The association further pointed out that only in this way the market will meet the “realities of consumer demand for different gaming products”.
As mentioned above, Norway’s new regulations are subject to consultation within the country’s legislature and were submitted for review by the European Commission. Norwegian lawmakers have previously said that they would look to enforce the rules on January 1, 2019, the same exact date on which neighboring Sweden is set to implement its gambling licensing regime.
