Will Norway change its course on payment blocking?

The European Betting and Gaming Association (EGBA) recently called on the Norwegian government to ditch payment blocking as a method of stopping unlicensed gambling, claiming that the introduction of a multi-license regulatory model is a more cost-effective method of dealing with illegal gambling.

Citing a report from Norwegian financial firm Menon Consultants, the EGBA suggests that this sort of system can generate potential taxation revenues of up to SEK 2,665m (£227.1m), while inversely the costs to the regulatory authorities and to current state-run operators Norsk Tipping and Norsk Risktoto would remain static for the foreseeable future.

EGBA secretary-general, Maarten Haijer has called the current regulatory model “unsustainable in an age when consumers can easily search around the internet for their preferred choice of gaming product.”

EGR Compliance discussed the report and the future of the process with Henrik Nordal, director at the Norwegian Gaming Authority and whether it may be time for a change in tack from Norwegian authorities.

EGR Compliance: What is your opinion of payment blocking as a method of combatting illegal gambling?

Henrik Nordal (HN): Payment blocking is one of many regulatory efforts to ensure that lottery and gambling are offered in safe and responsible ways to restrict unfortunate gambling behaviour in Norway.

EGR Compliance: What do you think about the findings contained in the Menon report?

HN: The Menon report is a commissioned work by commercial interest (The report was commissioned by Scandinavian operators Kindred, Gaming Innovation Group, ComeOn and Betsson). So there were no surprises in what was presented.

The aim of the Norwegian gambling policy is to ensure that lottery and gambling are offered in safe and responsible ways to restrict unfortunate gambling behaviour while the report talk of the money that might be levied by the government. In that way, the report doesn’t relate in any particular way to the current Norwegian policy.

EGR Compliance: With international providers, Norwegian banks and associations being against the proposed payment blocking methods, will the NGA reconsider its position?

HN: We are tasked with using the regulatory efforts we see as relevant to ensure that lottery and gambling are offered in safe and responsible ways to restrict unfortunate gambling behaviour in Norway.

Banks and payment providers operating in the Norwegian market have a legal and social responsibility to aid that effort. We will use the responses we got from the consultation process in our effort to improve the effect of the payment blocking.

EGR Compliance: If not now is there a point in the process where you might consider this?

HN: All regulatory efforts are constantly subject to a cost/benefit assessment, but I can’t see that happening in the foreseeable future. On the contrary, the Parliament has instructed the Government to increase their efforts in this area, setting out eight proposed measures in the areas of payment blocking, financial penalties and increased powers for regulatory authorities to inspect gaming firms and bank records. (https://www.stortinget.no/no/Saker-og-publikasjoner/Publikasjoner/Representantforslag/2017-2018/dok8-201718-110s/?all=true)

EGR Compliance: What other methods of targeting illegal operators did the NGA consider?

HN: In the same parliamentary proceeding the Parliament asks the Government to, among other things, to implement DNS-blocking and to restrict marketing of gambling further.

EGR Compliance: What’s the timetable for the implementation of payment blocking?

HN: Payment blocking is already in place but there is a legal process to enhance its efficiency.