Norwegian Gaming Authority stamps "coercive" fine on Oslo-based SEO agency

The Norwegian Gaming Authority (NGA) has issued a first-of-its-kind rolling “coercive” fine to Oslo-based SEO company SEO-Butler over the marketing of illegal gambling sites in Norway. NGA regulators first identified illegal marketing across 17 web pages operated by the firm in December 2020 and ordered SEO-Butler to cease marketing to Norwegian players. The NGA later issued a subsequent reminder to the firm to cease marketing of these sites in March 2021 and warned SEO-Butler that it would issue a fine designed to ensure compliance with this order. In April, SEO-Butler confirmed all 17 sites had been blocked to Norwegian IP addresses and would not be accessible to Norwegian players. However, a subsequent investigation by the NGA found that while the bulk of sites had been blocked, four identified sites were still accessible to Norwegian consumers. “SEO-Butler has on a number of occasions been made aware of breaches of marketing and the dissemination ban,” the NGA wrote. “The NGA takes a serious view of repeated breaches of the regulations, even after the actor is made aware of which specific cases are considered to be breaches of the rules. “Furthermore, SEO-Butler has in several cases given the impression that they have complied with the orders to stop the illegal business,” the NGA added. Under the Norwegian Lotteries Act, broadcasters, newspapers, radio stations and online marketing firms are prohibited from marketing illegal online gambling operators to players, even if it is not registered as paid marketing. Coercive fines are intended as a motivation to comply with orders and do not constitute a punishment under Norwegian law. If the order is complied with within the time limit, a coercive fine may not be imposed. The fines are designed to eliminate any financial benefit for the breaching firm while also not being “unreasonably” high. “On the basis of the nature of this case, the NGA finds that the illegal activity is of such a nature, scope and such a degree of severity that a decision on a coercive fine will be a necessary tool to stop the business,” the regulator explained. The NGA has imposed a coercive fine of NOK2,000 (£170) per day beginning on 25 May until the remaining sites are rendered inaccessible to Norwegian players. However, the coercive fine will cease to be enforced once it reaches a maximum amount of NOK200,000 (£16,000).