EGBA launches payment blocking lawsuit against Norway
Association calls for Norwegian market liberalisation and end to monopoly system
The European Gaming and Betting Association (EGBA) and payments processing company Entercash have launched a lawsuit against the Norwegian government over its policy of payment blocking.
This prohibition applies to payment transactions to and from unlicensed operators and other companies which provide payment transactions on behalf of unlicensed operators.
The EGBA lawsuit centres on the assertion that payment blocking infringes on EU law, and the freedom to provide goods and services without restriction.
At present, the Norwegian gambling market operates a monopoly system, guaranteeing exclusivity to Norsk Tipping and Norsk Risktoto and barring international gaming firms from operating in Norway. However Norwegian players can still access international operators online, as the Norwegian government does not actively block the ISP’s of other gambling firms.
Maarten Haijer, secretary general of the EGBA, said the payment blocking measures were aimed solely at protecting the revenues of the state-owned monopoly, rather than actively benefiting Norwegian players.
“This is not only in breach of the EU’s internal market principles but out of step with the reality of a consumer-driven betting market, where players will inevitably search around the internet for value and choice in the games they play,” Haijer added.
In addition to pursuing a policy of payment blocking, the Norwegian government has issued several operators, including Kindred Group, with cease and desist letters ordering them to stop servicing the Norwegian market.
Norway is one of only two European Economic Area countries which actively operates a monopoly system within its gambling market, the other being Finland. Haijer said it was “inevitable” that these markets will eventually have to licence and regulate, welcoming international online gambling operators.
“The introduction of a multi-licensing regime would be a win-win: it would encourage more effective channelling which would benefit player protection, more effective local control of gambling activity and increased tax revenue for the Norwegian state,” Haijer added.