Norway to Introduce Online Gambling Ban on Foreign Operators

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Friday, May 4th, 2018 | Written by Adam Brown

A coalition of four political parties have presented a set of proposals to the Norwegian Parliament seeking an online gambling ban against foreign providers, with the mandate subsequently expected to pass in the coming weeks. The parties involved include the Labor Party, the Christian People’s Party, the Socialist Left Party, and the Center Party, which together represent half of the eight political parties serving in Parliament.

Their motion follows legislation tabled six months ago that make it illegal to advertise gambling products and services for gambling companies from outside of Norway. Until now, however, a certain number of loopholes meant that casino and betting companies were still advertising to Norwegian residents by bypassing marketing laws and advertising on TV channels shown in Norway via broadcasts from outside of the country.

In other words, despite Norway having one of the strictest sets of legislation regarding online gambling, foreign companies were still managing to attract hundreds of Norwegian players to gamble on their sites. That is all about to change in a big way soon, with the set of demands that are expected to be enacted by May 7th including:

– IP blocking of foreign online gambling companies.
– Permitting the gambling regulator to monitor banking transactions with foreign operators.
– Extending advertising restrictions to target the digital inventory of media owners promoting unlicensed gambling websites.
– Extending regulator’s powers to set fines for violations of the country’s gambling act and financial codes.

Online Gambling Monopoly

While the strict measures will certainly shake things up in Norway, gambling both online and offline will still continue. The ban will simply mean that the state owned companies Norsk Tipping and Norsk Rikstoto will be the only two operators allowed to provide gambling products in Norway.

Established in 1948, Norsk Tipping is the Hamar based Norwegian national lottery provider that provides a number of gambling products in the country, including sports betting, lotteries and instant games. When the company first started, the only product it offered was football pools, but over the last 60 years it has expanded into other sectors, with profits from the firm directed back in to government services. These days, popular games offered at Norsk Tipping includes Oddsen, Joker, Keno, Eurojackpot and Belago.

Founded in 1982, Norsk Rikstoto is the only other legal gambling company able to provide services to residents in Norway, with the company specializing in tote and animal betting such as horse racing.

Implications of Ban

The ban against foreign gambling providers will mean that Norway, similar to America, will see a fall in gambling activity online, with Norsk Tipping and Norsk Rikstoto set to be the main beneficiaries as they now have a monopoly on Norwegian players. What this ban may also do is lead to a rise in underground gambling activity across the Internet in Norway, with gambling companies able to evade the ban by constantly changing their IP addresses or using IP cloaking in order to tap into the Norwegian markets. Ultimately, however, placing major respectable brands out of the reach of its citizens is likely to result in a rise of unregulated, less trustworthy gambling providers springing up around the country, and consequently less consumer protection for its players.

Offshore Sites Still Available

While there is no specific date for the law, it is expected to be enacted sometime within the summer of 2018. Until the ban does comes into place, however, providers are still able to tap in to the Norwegian market and many offshore gambling providers are likely to continue doing so from both Europe and Worldwide, emboldened by the fact that they are operating within the laws of the jurisdiction where they are licensed. Nevertheless, due to strict banking laws and cash card restrictions within Norway, a lot of players are compelled to use e-wallets in order to deposit and withdraw funds on online casino or betting sites.

Amongst the big brands still accepting players from Norway at the time of publishing are Norges Spill, Royal Panda, GUTS and Vinnarum Casino. In the meantime, there are a number of European gambling providers currently in discussions to challenge the new draconian law via the European Union, but only time will tell how successful they efforts will be.

Responsible Gambling Concerns

Over the last 30 years, there has been a large increase in crime related to gambling and gambling addiction in Norway. Lottery and games has always been strictly controlled, but the online gambling boom and variety of products available today has meant it has had to tighten its rules further, which has subsequently resulted in a decrease of problem gambling in Norway.

In July 2007, for instance, slot machines were banned and two years later interactive video terminals (IVTs) were introduced, instead. IVTs are primarily run by Norsk Tipping and allows the company to monitor and regulate the machines, including payout and stake limits. Players need to have a special card in order to play on IVTs, and are able to set their own limits, thus giving them greater control over the money they are wagering and cut down on the risk of them losing big sums or developing an addiction.

As machines are network based, each player has an account that is linked to a player card, so that no cash is exchanged to or from the machines. Compulsory caps are in place at approximately $70 a day. In light of the ban on foreign providers, it is estimated that Norwegian residents will see the introduction of more interactive video terminals and the possibility of caplimits being increased slightly in the future.