Lotteritilsynet to Ensure Banks Do Not Interact with Offshore Operators

Norway continues its battle against unlicensed gambling websites. As offshore operators continue to target consumers in the country, the local gambling regulator, Lotteritilsynet, decided to monitor several banks to make sure they don’t interact with such companies.

As outlined in Section 5 of the Norway Gambling Act, Norway prohibits banks from allowing customers to deposit money into unlicensed gambling sites or withdraw them. The Lotteritilsynet seemingly wants to make sure that the banks are taking these obligations seriously.

According to the announcement, the Lotteritilsynet will monitor nine banks. The regulator did not say whether these banks have previously committed offenses and refrained from disclosing their identities.

The Lotteritilsynet explained that its job would be to watch out for any suspicious activities and ensure compliance. Banks will have to provide information on the measures and protocols they have implemented in order to stop the movement of money from and to illegal gambling websites.

To convince the regulator, banks will also need to provide information on the internal processes they have in place. They have three weeks to respond to the Lotteritilsynet’s request.

Lotteritilsynet Wants to Protect the Norwegian Market from Offshore Competition

Rannveig Gram Skår, a Lotteritilsynet lawyer, said that his team has been discussing the matter with Norwegian banks for a very long time. However, this would be the first time the regulator has adopted a hands-on approach, opting to conduct a thorough inspection of the banks’ compliance measures.

According to Skår, the blocking of payments to and from illegal gambling entities is something crucial to protecting Norwegian consumers from unlicensed foreign entities. He said that the regulator is firmly committed to preventing gambling harm.

Skår concluded that the Lotteritilsynet expects banks to comply with the regulator’s decisions.

For reference, Norway is one of the European countries that still maintain their gambling monopoly. Despite efforts to introduce a licensing model, Norwegian laws still prevent foreign companies from interacting with local customers. Instead, only Norsk Tipping and Norsk Rikstoto are allowed to offer gambling and betting.  

Norway recently announced that a number of offshore companies, including Kindred, bet365, Betsson, Come On, BetSafe and Nordicbet, are expected to withdraw from the market.

The announcement comes following Kindred’s defeat in the country. Operating under the Trannel brand, the gambling operator had tried to solidify its presence in the country. However, the Lotteritilsynet threatened the operator with fines, which were confirmed by the Borgarting Court of Appeal in spite of Kindred’s appeal.