Norwegian Court Upholds State Lottery Monopoly
The Borgarting Court of Appeals in Oslo has upheld the exclusive betting rights framework held by the Norwegian state lottery enterprise Norsk Tipping. The court determined that this model does not infringe upon the European Economic Area Agreement.
The case originated in 2018 when lottery operator Norsk Lotteri AS filed a lawsuit against the Oslo District Court and the Borgarting Court of Appeals after it sought a betting license within the jurisdiction. The company contended that Norsk Tipping’s monopoly violated the European Economic Area Agreement.
The European Economic Area Agreement, under the regulations of the European Free Trade Association (an intergovernmental organization comprising Iceland, Liechtenstein, Norway, and Switzerland), guarantees equal rights and responsibilities for individuals and businesses within the internal market of the European Economic Area (EEA).
It stipulates the incorporation of EU legislation covering the four freedoms: the free movement of goods, services, people, and capital among the 30 EEA nations.
The Borgarting Court of Appeals has now decided that Norsk Tipping’s monopoly on gambling can be preserved because it does not breach Article 31 of the EEA Agreement.
This piece of writing asserts that “the liberty of citizens from any European Economic Community or European Free Trade Association member state to establish businesses within the territories of other member states is unconfined,” encompassing “founding agencies, branches, or subsidiaries.”
The judicial body believes that the monopoly framework directs participants towards more accountable gaming, which contributes to a reduction in gambling issues.
The court highlights that the presence of unregulated online gambling within Norway does not imply that the monopoly model is unsuitable.
The court’s decision suggests that the Norwegian government has implemented a series of actions to prevent unauthorized operators from entering the Norwegian market.
Concerning the wagering offerings of the Norwegian Lottery Company, the court believes that the organization prioritizes responsible gambling over the allure of its products. The court maintains that this positions the company as a leader in responsible gaming and places it at the forefront of customer vetting.
However, the case might still be appealed to the Norwegian Supreme Court.
The Norwegian Online Gambling Association (NBO) last year advocated for the termination of the existing gambling monopoly, following new research indicating an increase in gambling dependency among Norwegians.
Within Norway, the Department of Culture initiated a dialogue last June to unify the nation’s betting regulations into a singular gambling statute. This action intends to preserve the market dominance of Norsk Tipping and Rikstoto, concurrently bolstering consumer safeguards.
Last month, the administration presented a revised draft gambling legislation that incorporates a pledge to implement more stringent penalties on unauthorized operators and associates that supply prohibited gambling services to consumers within the region.
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