Schpell Loses Appeal in Norwegian Gambling Ad Case

Norway currently enforces tough restrictions when it comes to gambling marketing. With gambling ads prohibited, the country’s regulator, the Norwegian Gambling Authority (NGA), constantly monitors for potential violations and takes appropriate action.

In one such recent case, a gambling operator lost its appeal with the country’s Lottery Appeals Board. The case in question revolves around Schpell, a gambling brand operated by Tiergarten Marketing, which was found to be in violation of the country’s gambling advertisement rules.

Live Gambling Streams Breach Norway’s Gambling Ad Rules

Earlier this year, an investigation by the NGA concluded that Schpell engaged in illegal promotion on its websites as well as via social media platforms, including YouTube, Twitch, Kick and others. Concerningly, the Authority found out that popular media influencers helped promote illegal gambling games thanks to live streams and broadcasts.

In light of the discovery of the NGA, Schpell, together with Tiergarten Marketing, Baris Entertainment and Viken Entertainment filed an appeal with the appeals body, the Lottery Appeals Board. On Tuesday, the Lottery Board confirmed that the companies’ appeal on NGA’s decision was denied. This ruling effectively reaffirmed the gambling regulator’s decision and its order against the companies to discontinue the unlawful marketing practices.

Gambling Firms Need to Discontinue Their Illegal Marketing or Face Penalties

In light of the outcome of the appeal, the companies may face penalties unless they stop the unlawful activity within a specific deadline. The NGA gave the companies an “extended deadline” until December 17. Until that date, they will have to stop any illegal gambling marketing and remove previous content, or they risk daily fines.

Per the announcement, Tiergarten Marketing, Schpell’s operator, would face NOK250,000 ($22,400) daily fine, while Baris Entertainment and Viken Entertainment would have to pay NOK50,000 ($4,500) per day. However, if the companies ensure their compliance, they can avoid the hefty monetary penalties.

“We expect them to stop promoting illegal gambling in all their channels, and that they remove everything that is already there, we have also received signals that they will do so.“

Monica Alisøy Kjelsnes, lawyer at the Norwegian Gambling Authority

Monica Alisøy Kjelsnes, NGA’s lawyer, revealed that the gambling regulator now expects the companies to stop the promotion of illegal gambling. She confirmed that Tiergarten Marketing, Baris Entertainment and Viken Entertainment have all hinted that they will comply with the request.

Kjelsnes spoke about the powerful position social media influencers have when it comes to reaching young audiences across Norway. She added: “The Lottery Board has done a thorough job. Their decision is very clear, and there is no doubt that this marketing is illegal. We expect it to end.”

The latest action isn’t the first or the last one for Norway’s gambling regulator. Recently, the country reaffirmed its intention to investigate gambling operators and crypto firms for potential ethical breaches.