While some European countries adopted a friendly approach toward the gambling industry to boost their coffers, others imposed strict restrictions. For years, the Norwegian government has kept the gambling industry under a state monopoly. According to Norwegian law, only a handful of gambling activities are regulated.
Despite the country’s efforts to prevent its residents from placing bets at unlicensed offshore virtual casinos, there are plenty of gambling websites that are available in Norwegian and accept payments in Norwegian krone. In this article, we will discuss the ins and outs of the Norwegian gambling industry.
Gambling Regulations in Norway
Norway adopted some of the strictest anti-gambling rules in an attempt to prevent gambling addiction, avoid money laundering, and protect its financial interests. Under Norwegian law, all gambling activities are monopolized by two state-run entities, namely Norsk Tipping and Norsk Rikstoto. The former is in charge of games such as lotteries, sports betting, keno, poker, and scratch card games, while the latter is responsible for horse racing betting. Additionally, individuals under 18 are prohibited from participating in any gambling activities, though this ban does not apply to scratch-off tickets. The country has also adopted a very strict approach toward gambling commercials.
Most forms of gambling are outlawed in Norway, and the few permitted games fall under the state monopoly and are strictly regulated. The Totalisator Act of 1927 was the first piece of legislation that regulated the horse racing betting industry in Norway. Specifically, this Act gave Norsk Rikstoto the power to run the horse racing betting market. The Norwegian gambling regulator, which monitors the market, is overseen by the Ministry of Culture.
The Gaming Act of 1992 gave Norsk Tipping the authority to operate the country’s lotteries, sports betting, keno, and scratch card games. Online poker was added later to the list of games offered by this entity. Three years later, the Lottery Act was introduced to clarify the legality of various forms of lotteries and other games.
In December 2008, the Norwegian Parliament enacted a bill that aimed to prohibit payments from Norway to unlicensed remote gambling sites. In this way, the government hoped to prevent its residents from playing at offshore online casinos. It is important to note that all earnings generated from gambling activities are taxed under Norwegian law.
Norway strictly prohibits land-based casinos. However, a fair number of licensed bingo halls may operate in the country, provided certain requirements are met.
In June 2020, Norway made headlines when the Norwegian Ministry of Culture announced plans to launch a consultation on consolidating the country’s gambling laws into a single statute without removing the monopoly. The consultation will take place on September 29, 2020.
As explained above, not all forms of gambling are restricted in Norway. You can indulge in several gambling activities, including poker, sports betting, horse racing betting, lotteries, bingo, and slots. Notably, the operation of slots is governed by the Lottery Act of 1995.
The slot machine industry is growing at a rapid pace and generates the lion’s share of the country’s gross gaming revenue. However, there is a major loophole in the law, as the Lottery Act grants licenses only to charitable organizations, yet it does not prohibit private entities from running slots if they share the profits with those organizations.
Online Gambling
Despite the country’s strict approach toward gambling, the laws are insufficient to adequately address online gambling. Players from Norway can visit the websites of offshore online casinos, as there are no specific regulations that directly affect online gambling. Moreover, online betting is an extremely popular pastime in Norway due to the lack of land-based casinos.
The only major obstacle for Norwegian players appears to be banking. Under the country’s laws, transferring money between offshore gaming sites and Norway-based bank accounts is prohibited. However, the online casinos that accept players from Norway have adopted safe banking solutions.
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