Norway regulator warns Chess Federation over Kindred partnership
Regulator pens letter to NCF weighing in on marketing agreement
The Norwegian Gaming Authority (NGA) has told Norway’s Chess Federation to drop its proposed marketing partnership with Kindred Group, which it deems to be operating illegally in Norway.
In a five-page letter to the Chess Federation, the NGA reiterates its belief that Kindred operates illegally and “will monitor the activities” of the federation if it chooses to turn its draft agreement into a full and legally binding marketing agreement.
It follows a full review of the letter of intent between the Norwegian Chess Federation and Kindred Group, where regulators assessed the proposed agreement’s compatibility with Norwegian law.
Kindred has offered the Norwegian Chess Federation a sponsorship deal worth NOK50m (£4.6m) over a five-year period. A final decision on this will be taken at the Federation`s annual congress on 7 July.
The NGA called on the Chess Federation to “carefully assess” its agreement adding that it risked operating in a “gray zone” between what is allowed by the freedom of expression and illegal marketing and dissemination of gambling.
Rolf Sims, Norway public affairs manager for Kindred Group, said the operator had undertaken a legal assessment of the proposed deal in light of Norwegian gaming and marketing law.
Defending the sponsorship proposal, Sims said the agreement would create a “stronger economic framework” for the Chess Federation and the sport in Norway.
“Activities and communications encompassed by the deal will not contain any forms of promotion for gambling, Kindred brands or other commercial messages,” Sims added.
“Initiatives and public statements promoting a licensing system are protected by the freedom of speech. A co-operation between Kindred and the Chess federation does not represent a breach of Norwegian law,” Sims added.
In April, Kindred’s Maltese-licensed subsidiary, Trannel International Limited, was ordered to cease offering gambling services to Norwegian players by the regulator.
At the time of the order, Trannel was given three weeks to leave or face “substantial reoccurring fines”. However, Kindred refused to do so, citing the supremacy of EEA law over Norwegian law.
Launching an appeal against the decision through the Norwegian courts, Trannel has also launched a lawsuit against the Norwegian Ministry of Culture over its treatment. The case will be heard in Oslo’s district court in October.