Norwegian Survey on Payment Blocking
The Norwegian Gaming Authority, known as Lotteri-og Stiftelsestilsynet (Norwegian Gambling Supervision), is conducting a survey of domestic banks to ensure compliance with the ban on payment transactions with foreign online gaming providers. Despite the ban being implemented in 2010, reports suggest that it has not been fully enforced. The authorities have faced criticism over their strict approach, which includes orders to banks to cease transactions with unlicensed operators.
Recently, Norway tightened its advertising ban, prompting the authority to examine bank transactions to understand the extent of compliance. The survey, to be sent to 170 Norwegian banks, will anonymize responses to protect respondents from legal action. The authority estimates that transactions worth €559.7 million have occurred since the introduction of the ban.
The authority has the power, as of January 2020, to instruct banks to halt transactions with unlicensed operators based on company names and account numbers. This is intended to aid the protection of customers with gambling problems, the primary target of the survey.
The Norwegian Gaming Authority has been examining gambling-related issues and found, through a study by the University of Bergen, that around 55,000 people in Norway have gambling issues, which is an increase from the 34,000 identified in 2015. An additional 122,000 people are at risk of developing such problems. While the authority seeks more stringent measures, the Norwegian Association for Online Gambling (NBO) argues for the opening of the market to better regulate the rapidly expanding industry. The NBO maintains that 50% of online gamblers in Norway use international brands not regulated by the Norwegian authorities.
Lawmakers have responded by creating stricter requirements for advertising, prompting a drop in advertising spending by offshore operators from €50.8 million to around €49.8 million by July 30, 2019. The Norwegian Media Authority issued regulations in October to help prevent illegal ads from reaching the public, a move criticized by the NBO. Furthermore, the NBO continues to advocate for the end of the Norwegian gambling monopoly, as the system does not adequately protect players.
Lotteri-og Stiftelsestilsynet aims to use the survey findings to better defend against illegal gambling providers and decrease the effects of gambling issues caused by offshore providers. The survey will investigate banks' practices regarding customer communication and how they maintain contacts with customers who play on foreign gambling websites. The banks' roles in regulating transactions with foreign providers will also be explored.
The Norwegian Gaming Authority plans to send a survey this summer to over 170 Norwegian banks, asking whether they've been following the payment ban to ensure that problem gamblers are protected. Although the ban was introduced in 2010, the authority has indicated that some transactions have still occurred. Approximately €559.7 million may have been transferred in such instances.
To punish non-adherence to the ban, a new power has been granted to the authority to order banks to stop payments to unlicensed gambling companies using company names and account numbers. It remains to be seen how banks can control such transactions and how they are communicated to customers.
While the authority's actions are collectively aimed at driving offshore operators out of the market, the Norwegian Association for Online Gambling (NBO) has urged the government to open the market to better regulate the booming industry. It insists that customers don't follow national borders, and half of online players use international brands.
A study commissioned by the Norwegian Gaming Authority from the University of Bergen found that an estimated 55,000 individuals in Norway suffer from gambling issues, surpassing the 34,000 identified in 2015. Additionally, 122,000 more people are vulnerable to developing similar problems. The NBO claims that most of these clients play with offshore providers, but this assertion is disputed by the NBO. Meanwhile, the NBO wants a market monopoly lifted for more providers.
With stricter advertising rules, the Norwegian Media Authority successfully reduced offshore providers' advertising spending by 19% since the previous year, bringing it down to approximately €49.8 million as of July 30, 2019. The authority said the laws may be further sharpened. The NBO strongly opposes the authority's stance, implying the government may maintain its strong position against unlicensed gambling providers.
The question of whether banks can effectively control and prevent transactions with foreign gambling providers and communicate this to customers is currently being examined by the survey. The findings will help the authority limit gambling offers that exacerbate gambling problems caused by foreign operators.
The survey's focus on compulsive gambling issues flows from a University of Bergen report released earlier this year, which estimated that about 1% of Norway's populace, or 55,000 people, experience gambling issues. Slightly more concerning was the determination that an additional 122,000 individuals may be at risk of developing these issues.
The NBO contends that the unwavering Norwegian Gaming Authority has stifled the online gaming industry's growth by imposing unreasonable restrictions. It posits that having more players in the regulated market would limit client migration to unlicensed websites. The NBO also criticizes the legislation for criminalizing public advertising from unlicensed operators, claiming that it doesn't differentiate between legitimate gambling platforms and rogue operators.
Malegrimsol Academia, by Lisbeth Rand, Jon Otto Gyldenberg and Diana Borbin, Hannah Schonegg, produced the study. It found that online gambling participants opt for international companies over national ones. Demonstrating this shift, the NBO reported that half of all Norwegian online gamblers use international operators.
The Norwegian Gaming Authority's unique position as the country's sole gambling provider has been questioned by the NBO. It calls for the opening of the market, arguing that comprehensive regulation would be more effective. The NBO proposes the passage of laws allowing more domestic operators and emphasizes the need for a well-regulated gambling industry to ensure player security.
In short, the Norwegian Gaming Authority plans to investigate whether Norwegian banks are complying with a 2010 ban on payments to foreign online gaming providers. As the market's sole reservoir, the authority is taking steps to identify practices that could expose problem gamblers. This survey comes after a precedent-setting rise in the estimated number of Norwegian problem gamblers.
Read also:
- Remaining contenders down to two in DFB's struggle versus Brazil.
- Schalke's Transfer Assessment: A Season of Wastefulness
- Shocking development in the NBA!
- Law enforcement agencies in various metropolises plan expansive measures for May 1.
Source: www.onlinecasinosdeutschland.com
