Norwegian Gambling Authority steps up oversight of online casinos

• Norway’s online casino market faces increased scrutiny
• Lotteritilsynet oversees banks to enforce a ban on transactions with illegal online casinos in Norway.
• EGBA urges Norway to adopt a licensing model for online gambling, citing the need for diversity and player safety.

In a bid to further regulate the online casino market including the rapidly growing crypto gambling and reduce illegal gambling, the Norwegian gambling authority, Lotteritilsynet, has intensified its efforts to enforce existing regulations. 

The authority is closely monitoring nine banks in Norway to ensure compliance. It has also banned banks from processing illegal gambling transactions.

Online casino payment restrictions

The ban on payments to and from illegal gambling operators is a crucial regulatory tool aimed at reducing illegal gambling in Norway. 

Recent population surveys suggest that this prohibition has made it increasingly challenging for the public to engage with foreign-based gambling operators, helping fuel a boom in crypto being used in the payments sphere. This measure aligns with Norway’s commitment to fostering responsible gambling practices and protecting its citizens from the adverse consequences of excessive gambling.

Bank surveillance

Under Section 5 of Norway’s gambling act, payment transactions with unlicensed gambling operators are prohibited. Lotteritilsynet has the authority to instruct banks to reject transactions to and from specific accounts and companies involved with unlicensed gambling operators. Reports have it that the regulator has identified nine banks for scrutiny.

While the identity of the nine banks under scrutiny remains undisclosed, the move is part of Lotteritilsynet’s ongoing efforts to enforce the ban and curb problem gambling in the country.

Lotteritilsynet has requested detailed information from the nine banks regarding the steps they have taken to prevent transactions to and from specific companies and account numbers associated with unlicensed gambling operators. Additionally, the authority has asked for insights into the banks’ internal compliance routines.

The banks have been provided with a three-week deadline to furnish Lotteritilsynet with the required documentation and information. The regulatory body expects the banks to demonstrate effective compliance with its directives.

EGBA urge Norway to shift…