Economy

Norway: Betsson summoned out or Norway: Betsson called away

Online gambling provider Betsson has to exit Norway due to the country's persistence in maintaining an aged gambling monopoly.

SymClub
May 19, 2024
3 min read
Newsonlinecasinosgermany
Tunnel vision: Despite harsh criticism, Norway is not budging from its gambling monopoly.
Tunnel vision: Despite harsh criticism, Norway is not budging from its gambling monopoly.

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Norway: Betsson summoned out or Norway: Betsson called away

To shield the state organizations of Norsk Tipping and Norsk Rikstoto, Norway continues to employ vigorous methods against online gaming companies based in other European countries. The Norwegian Lottery Authority (Lottstift) cautioned the well-known supplier Betsson recently. If the institution does not quit the market right away, it might face significant penalties. What motivates the authority to take action?

Betsson websites targeted at Norway?

The Norwegian gambling monopoly has come under fire for decades but Oslo remains resolved not to budge from its confrontation with European foreign online providers. The modernization of the market is still in its infancy. The Swedish BML Group subsidiary Betsson is now facing rigid sanctions: the worldwide operative company has received a scolding from the responsible lottery body (Lottstift) for leaving the Norwegian market immediately.

Betsson is prohibited from delivering products to Norwegian customers, effective instantly. According to Lottstift, the BetSafe and NordicBet proprietor is present on the market with various sites using Norwegian names and emblems. Advertisements for those sites often appeared on TV notwithstanding the advertising ban. The authorities claim the sites are directed at Norway, therefore they violated the Lottery and Gambling Law.

Apart from the main Betsson brand, NordicBet, Norgesautomaten, and CasinoEuro are also subject to the prohibition. At this point, Lottstift related Norgesautomaten and CasinoEuro to the Kindred case in 2019 that was represented in Norway through the Trannel International brand and had to withdraw to avoid a penalty. The corporate umbrella BML, licensed in Malta, had already been advised of the approaching measures against Betsson.

Norway has been on a mission for years against the flourishing digital gaming sector on the internet with drastic steps like advertising restrictions and payment blocks. In conjunction with Finland and Austria, Norway is still among the few countries in Europe to uphold outdated gambling syndicates. The government always justifies the endeavors with enhanced gambler protection, but trade unions and experts express the escalation of problem gambling in Norway as a result of these broad prohibitions. Notwithstanding, Oslo persists in its ways and recently announced further tightening.

Did Betsson bypass the payment ban?

The accusation of illicit betting carries stiff ramifications, as Betsson offers services in multiple regions and directly invites players from the Norwegian market to play - according to Lottstift, Norwegians are permitted to register as patrons despite the ban. BML's Maltese certificate might not play a role either, as the nation's Lotteries Act and Gambling Act would be applicable as soon as the offer was aimed specifically at Norwegians.

The lottery authority's collusion with any payment service amounted to evidence that the BML Group actively worked around the Norwegian payment ban in the context of overseas gambling companies. As per the Gambling Law, only state businesses are authorized to provide online gambling games and sports betting in Norway. Betsson thus risked a heavy penalty if the entity refuses to leave.

Substantial criticism of the monopoly from the EGBA

Europe's most significant gambling consortium - the EGBA (European Gaming and Betting Association) - supports the requests of national digital organizations to grant access to foreign suppliers. To support their argument, the Brussels-based association commissioned a study last May on the repercussions of the Norwegian monopoly, the results of which were unequivocal:

Norway is losing command of its gaming sector. Over 66 percent of clients disdain the state monopoly and opt to play with international EU-licensed suppliers, rather than rely on the two state-owned entities, Norsk Tipping and Norsk Rikstoto.

The EGBA insists it's a myth to perceive that a state organization is needed to effectively govern the ascendant online gaming industry.

Additionally, bans cannot save the state monopoly. Norway had argued with those two justifications, but the statistics invalidate their arguments. Akin to various digital domains, online gaming is a customer-focused market - and Norwegian patrons are internet-savvy and affected by price and innovative inclinations. Monopolies restrict choice and are incompatible with the contemporary gaming business.

The study also addressed an outdated approach that no longer fits the requirements of modern gaming customers. Norwegian customers actively search for alternatives and prefer a wider range of gaming choices. Both are readily obtainable online. Furthermore, external providers provide more favorable conditions. The exponential migration of customers is, thus, not surprising.

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Source: www.onlinecasinosdeutschland.com

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