Norway's advertising ban faces criticism.
The Norwegian trade association for online gambling, NBO, has expressed its disapproval over the increasingly strict advertising restrictions on European offshore providers in Norway and has called for a more liberal regulatory system instead of trying to maintain a monopoly. While other European nations are opening their markets, the Norwegian government has tightened its rules. What could be the anticipated advancements?
Advocating for a Liberalized Regulatory Model
NBO's Secretary General Carl Fredrik Stenstrøm has faulted the progressively harsher advertising bans on European gambling providers in Norway. Stenstrøm clarified that the developments are "disappointing, but not surprising," as a representative of the industry. NBO is therefore urging a change to a more lenient regulatory framework rather than upholding a monopoly.
The rationale behind this is the recent declaration from the Norwegian government implying to close a legal loophole allowing offshore providers to advertise within the country. Stenstrøm expressed his displeasure at the news, rooted in the fact that the liberalization of markets in other European nations has proven successful. The Secretary General commented:
"We're disappointed that the authorities don't recognize the developments we witness in other countries, where a licensing model has been introduced and accountability is prominent."
A Tightening of the Broadcasting Law
NBO's discontent stems primarily from an impending alteration to the law that allows the Norwegian Media Authority (Medietilsynet) to instruct domestic TV broadcasters and internet game developers to prevent any marketing efforts by online gambling providers from other European countries. The legislation is scheduled to come into force in 2020.
Before this update, the jurisdiction of the Broadcasting Act limited itself to TV channels based in Norway, not to those broadcasting into Norway from outside of its borders. European operators had previously exploited this loophole to publicize their services, circumventing the monopoly held by Norsk Rikstoto and Norsk Tipping in Norway.
Norway's gambling regulator Lotteri-og stiftelsestilsynet (Lotteries Act) had launched a discourse on the matter in April 2018. The authority declared a 19% decrease in advertising expenditure from offshore providers by October 2019. Advertising costs were down to $57 million by July 30, 2019. Despite this decline, the legislation is undergoing further limitations, leading to more stringent regulations than those in Germany.
The Decline of State Monopolies
The NBO views the tightening as an outdated measure, pushing for Norway to develop a new regulatory strategy to legalize private businesses instead of seeking to eliminate foreign operations. Stenstrøm highlighted that only Norway and Finland support upholding the gambling monopoly in the European Union. Effectively defending the monopoly is feasible if it benefits consumer protection. However, as per Stenstrøm:
"It would be more beneficial to equip these players with efficient tools so that they can regulate their gambling themselves, through a self-exclusion system. In Sweden, 48,000 players have already utilized such a tool after a year, a win for those with controlled gambling habits and a win for public health."
Sweden officially opened its online gambling industry at the start of 2019. The intention was to regulate the active sector while enhancing player safety. A modern licensing procedure was introduced for that purpose. Sweden has been issuing licenses since December 2018. One condition necessitated the submission of a self-exclusion system.
Is This a Quixotic Endeavor?
Despite the surging prominence of online gambling, Norway has spearheaded action against foreign service providers since 2017. The National Gambling Authority requested banks to halt money transfers via international payment providers, with the aim of impeding transactions between Norwegian players and unlicensed providers.
Specifically, this initiative targeted Trustly, Entercash, Earth Port, Inpay, Worldpay, Stay Cool, and the Betclic Everest Group, which were widely used for depositing and withdrawing with online gambling providers. According to the Norwegian Gambling Authority's research, over 90,000 transactions were forced through these service providers in 2016.
Norway continued its efforts in 2018. In May, the government introduced a catalog of stricter measures regarding payment transfers. Following a review, the contentious alteration to the law was implemented at the beginning of 2020.
This regulation includes a complete ban on payments to online gambling operators who do not hold a Norwegian license. The authorities maintain that although Norwegian banks employ systems to stop such transactions, unlicensed operators can circumvent the barriers by concealing their identities through new payment methods.
Even though there's a ban in place, Norwegians continue to spend about 600 million euros with international providers. This goes to show NBO's advocacy for a contemporary licensing structure. However, it's currently unclear if the government will reverse its extreme actions. Only time will tell what happens next.
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Source: www.onlinecasinosdeutschland.com
