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European Gaming and Betting Association (EGBA) against Government’s Policy to Block Online Gambling Payments in Norway
June 17, 2019 Aleksandra Zolotic
European Gaming and Betting Association (EGBA), along with Entercash payments processor, filed a complaint against the Norwegian Ministry of Culture in Oslo District Court. The subject in question was the government’s policy…
…of seeking to block online gambling payments. As far as EGBA believes, such a form of impediment would violate the EU law. Moreover, it would obstruct the freedom of payment processors to operate across the European Economic Area (EEA).
Seeking Compromises
EGBA suggested the government undertake a more fundamental review of how the country regulates online gambling instead of enforcing restrictive measures. On the other hand, the government believes that this measure aims to protect the revenues of the state monopoly and fend off outside competition from EU-approved operators. However…
…the adoption of a multi-licensing regime would result in improved functionality of Norway’s online gambling market, bringing additional benefits as well. The introduction of such a regime would lead to an even greater variety of products, brands, and competition on the Norwegian market to meet existing consumer demand. Consequently, this would make the local market more attractive…
…to local consumers and encourage more of them to access websites which are legal in Norway – and not on websites based outside it. This way more Norwegian players would be protected by the state’s laws when they play online and generate greater tax revenues for the state from local gambling activity.
Creating National Borders on Internet Impossible
This lack of choice regarding online gaming available locally might lead some Norwegian players to search elsewhere and play on gambling websites based outside their homeland. This would bring some other issues, as those would be the suppliers which neither apply Norwegian laws nor pay taxes…
…in the country. In today’s digital age it is virtually impossible to enforce national borders on the internet. Nevertheless, that’s exactly what the authorities are trying to do, by introducing payment blockings for web-based betting. The government sees such restrictive measures as a way of protecting the revenues of the state-owned monopoly by cutting off outside competition from reputable EU-licensed operators.
Win-Win Situation
Maarten Haijer, Secretary-General, EGBA believes that the introduction of a multi-licensing regime would be a so-called win-win situation. First of all, it would encourage more effective channeling which would result in extra benefits regarding player protection. In addition to this, the focus would also be put on a more proactive local control of gambling activity and increased tax revenue for the state. As he commented:
“This is not only in breach of the EU’s internal market principles but out of step with the reality of a consumer-driven betting market, where players will inevitably search around the internet for value and choice in the games they play. This reality is why we’re seeing national gambling monopolies across Europe slowly being replaced by multi-licensing regimes which facilitate better consumer choice and enable better functioning national markets. Norway is one of only two EEA countries which do not have a licensing regime yet – but it is inevitable they will have to confront this decision sooner or later.”
Source:
“EGBA Brings Case Against Online Payment Blockings in Norway”, George Miller, europeangaming.eu, June 14, 2019.
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I agree with EGBA that blocking is not a solution. Instead, they should work on other measures which would provide a diversity of content and protect the players.