Norway Government Acts Against Unlicensed Betting Market
The Norwegian Government will prevent unlicensed bookmakers from operating due to concerns of increased problem gambling among the young population. In collaboration with the government, the gambling authority has promised to impose strict sanctions on unlawful betting firms as well as any affiliates promoting their service. A new gambling act is set to be unveiled in the Norwegian parliament in the coming weeks, fully explaining the extent of control the government hopes to ascertain.
The Norwegian government has implemented new legislation to crack down on illegal gambling operations, both foreign and domestic. The government aim to have complete control of the market within the next couple of years. ©HOerwin56/Pixabay
A new legislative direction will help the authorities gain greater control of new entrants into the market and better regulate domestic firms. They effectively want to cap the market at its current number and prevent foreign platforms from establishing their service in Norway. The government believes these actions will allow them to support problem gamblers better and prevent new cases from occurring.
New research has indicated that an overflow of new services in the Norwegian market could lead to a greater imbalance between smaller and larger firms. By uniting slithers of legal documents, they will maintain the current market monopoly currently shared by Norsk Rikstoto and Norsk Tipping. Two of the biggest and most trusted betting platforms in the country will now have complete dominance over the domestic market.
These new legal changes were first proposed in parliament in July 2020; since then, the legal package had gone through many iterations until its finalization only two weeks ago. The European Commission has also officially approved the changes as every nation within the EU must do so. The mastermind and minister of culture Abid Raja expressed his joy and stated the intentions to crack down on unlicensed operators and protect the public.
The minister of culture sees the new effort as a milestone in Norwegian gambling legislation, a move that will finally unite the cracked market and enable the government to oversee its growth from a distance. He also criticized the number of foreign platforms in Europe set up specifically intending to exploit their user bases. Calling it unethical, he continued to cement his reasoning for new government powers to prevent new entrants to the Norwegian gambling scene.
Norway Lays Down the Law
Norway is one of the first countries in the EU to impose strict sanctions on foreign gambling operators. European nations tend to have a very liberal approach to foreign sportsbooks, often allowing new entrants; therefore, unregulated markets exist all over the continent. Norwegian parliament has noticed a positive correlation between problem gambling and unregulated markets. The issue of underage gambling especially has seen an unfortunate rise across many Scandinavian nations.
Upon the release of this new legislation, the Norwegian government faced major backlash from many large foreign firms as well as smaller Norwegian platforms. Their main gripe with the new legal changes was the maintaining of the current monopoly system in place. Understandably, smaller firms are at an overwhelming loss due to being axed from the market in order to maintain control over the market. The government aims only to support trusted firms that they know can provide safe gambling for the population.
Included with the legislation are strict sanctions for any firms caught breaching the new protocol. Several online platforms have already received fines for illegal operations below the national standard, especially those with failing security measures, an issue that the national gambling authority takes very seriously.
Another section affected by new legal precedents will be advertising, and especially sporting sponsorships. Similarly, to Sweden, the Norwegian authorities see a major issue with football teams, accepting gambling sponsorships as many football viewership figures are citizens under the age of 18. Marketers are required to tone down any psychological prodding with their advertisement in an effort to protect vulnerable users with a previous history of problem gambling.
