NORWAY'S UIGEA?

23 November 2007

Legislative amendments bring payment processors under gambling laws


It appears from Norwegian media reports on recent legislative activity that Culture and Church minister Trond Griske is pressing ahead with his plans to constrain online gambling in the Scandinavian country by dislocating payment systems to online gambling companies.

Last month, InfoPowa commented on Griske's reported plans to introduce a Norwegian version of the notorious U.S. Unlawful Internet Gambling Enforcement Act (UIGEA) but the minister has apparently chosen instead to amend existing gambling legislation so that payment processors fall within it.

Under the guise of a "clarification" the proposal apparently went forward last week and is now open to public comment until mid February. After that it will go before Parliament, bringing it within the enforcement timeframe of the next Northern spring that Griske has in mind (see previous InfoPowa report).

Online poker in particular is a popular pastime among Scandinavian players, many of whom have shown a world class capability in the game by winning tournaments and large prize purses at events both online and around the world.

The "justification" for a ban of financial transactions with online gambling companies will undoubtedly be the protection of Norwegian problem gamblers, but there can be little doubt that the state gambling monopoly Norske Tipping is being protected.

InfoPowa research indicates that up to 71 000 Norwegians - 1.5 percent of the population - have a serious gambling problem and 133 000 are considered to be in the risk zone. The average problem gambler in Norway spends Euro 5 000 a year on gaming.

According to press archives, in 2006 Griske worked hard to ban all land slot machines except those controlled by the state monopoly. As a result all the slot machines in Norway are now government-run by Norske Tipping, generating (according to our InfoPowa check on the latest half year numbers from July this year) revenues that have grown by 4.6 percent.

While Norway is not a full member of the European Union, it is part of the EU's market and EFTA, located in the European Economic Area.

Griske has confirmed that his officials have been monitoring the rise in online gambling among his countrymen.

Last week's amendment "clarifying" that existing gambling law in Norway applies to payment processing of online gambling transactions would effectively criminalise any Norwegian financial institution that processes such payments. Norwegian law prohibits the marketing, promotion or facilitation of Internet gambling services, and the amendment seeks to extend that activity to include payment processing.

Online Casino News courtesy of InfoPowa