Norway is known for its restrictive regulatory framework, but what happens when the local laws must comply with regulations that surpass them and have a completely different point of view over certain subjects? As a member of the European Economic Area, Norway is obliged to implement all EEA directives to State laws, but when it comes to gambling, it refuses to do so. Such action, or lack thereof, has resulted in many angry customers and companies. So, where is the catch and who is right?

Local laws against EEA directives

One of the most important elements of the EAA is the cooperation in enabling free movement of goods, persons, services, and capital. Furthermore, all member states must make reasonable efforts not to distort competition, to closely cooperate and thrive to research, development, environmental education, and common social policies. This is when it got tricky, as the Norwegian Ministry of Foreign Affairs issued a paper in which it mentions how local authorities determined how certain services of social significance can be provided exclusively by the State-operated companies, and gambling is one such service.

At the moment, the entire gaming industry in Norway is in the hands of two state-operated companies: Norsk Tipping and Norsk Rikstoto.

Does that mean there aren't any other brands that operate in Norway? No, as there are thousands of brands that provide their services under offshore licences. Local authorities tried to put an end to unregulated brands and even asked local banks to block all payments to unregulated casinos. There is also a financial background to the entire case, as the national treasury is losing billions of NOK to unregulated casinos.

Court action: Companies vs. Norway

Seven companies took a common stand, and decided to press charges against Norway, as they believed their monopolistic laws are not compliant with the EEA regulations, and that there is no reason for banks to withhold payments. The Oslo District Court ruled in favor of the Ministry of Culture and allowed the blocking of payments. Still, this hasn't prevented offshore companies from entering the market as they simply focused on e-wallets and cryptos.

As we see in the list of online casinos in Norway at NorskCasinoHex most of the brands offer their Norwegian players alternative payment methods to withdraw casino winnings. So essentially, the money never has to enter a Norwegian bank to be spent whenever and wherever the client feels like it. Furthermore, the majority of the brands available on the list are licensed, but usually by authorities who have no jurisdiction in Norway.

In addition, there were also two other charges against Norway. The first one addressed the issue of the State's monopoly in the gaming machine industry, while the second (that included one of the most reputable betting companies Ladbrokes) argued how it is not fair that only certain charities can offer specific games (alongside with State-operated brands, of course). Both cases heavily relied on the fact that Norway is breaching the EEA Agreement, and in both cases, it was ruled out there is no breach at all. 

So, why didn't they simply take charges to ECJ? Well, the answer is simple: Norway is not a member of the EU and is therefore not directly bound by the ECJ's rulings, so all effort is futile. The State of Norway simply accentuates the fact of how a huge distance between the offshore operator and the Norwegian customer increases the risk of fraud and considers its stand undebatable.

Disclaimer: Play responsibly. Players must be +18. For help visit https://www.gamcare.org.uk.