The Norwegian Appellate Court in Borgarting has determined that the exclusive betting privileges model of the Norwegian national lottery organization Norsk Tipping does not infringe upon the European Economic Area Agreement.
At present, only Norsk Tipping is permitted to provide most forms of wagering in Norway, while Norsk Rikstoto holds a monopoly on horse racing wagers.
In 2018, lottery operator Norsk Lotteri AS initiated legal proceedings against the Oslo District Court and the Borgarting Court of Appeal, asserting that Norsk Tipping’s monopoly violated the European Economic Area Agreement.
According to the European Free Trade Association (EFTA), an intergovernmental organization comprising the governments of Iceland, Liechtenstein, Norway, and Switzerland, the European Economic Area Agreement ensures equal rights and responsibilities for individuals and businesses within EEA member states within the internal market.
The agreement incorporates EU legislation covering the four fundamental freedoms, namely the free movement of goods, services, individuals, and capital between the 30 EEA member states.
The Borgarting Court of Appeal has now ruled that Norsk Tipping’s gambling monopoly can be upheld as it does not breach Article 31 of the European Economic Area Agreement.
This piece highlights that, based on the EU Treaty, any individual residing in an EU member nation or a member of the European Free Trade Association is permitted to establish a business within the territories of other member states. This encompasses the creation of agencies, branches, or subsidiary companies.
The court holds the view that the monopoly model serves as a guiding force for participants, encouraging them to adopt a more accountable approach to gaming. This, in turn, effectively diminishes the incidence of gambling-related issues.
The court emphasized that the presence of unregulated online gambling activities in Norway does not imply that the monopoly model is unsuitable for Norway.
The court’s decision demonstrates that the Norwegian government has implemented a series of measures with the aim of effectively preventing unregulated operators from gaining access to the Norwegian market.
Concerning the wagering offerings of the Norwegian Lottery Company, the court believes that the operator prioritizes responsibility over the allure of its products. The court stated that this places the operator in a position of leadership in responsible gaming and customer vetting.
However, the possibility remains that the case could be subject to an appeal before the Norwegian Supreme Court.
The Norwegian Online Gaming Association (NBO) last year advocated for the termination of the existing gambling monopoly. This call followed the release of new research indicating an increase in gambling addiction rates within Norway.
Norways Ministry of Culture initiated a public dialogue last June with the objective of unifying the nation’s gambling regulations into a single legal document. This dialogue aimed to preserve the market dominance of Norsk Tipping and Rikstoto, while enhancing consumer safeguards.
In recent weeks, the government presented a revised gambling bill that incorporates stricter penalties for unauthorized operators and partners providing gambling services to consumers within the country without a permit.
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