The gambling regulator in Norway, Lotteritilsynet, announced on Thursday that a dozen gambling operators, offering their services illegally in the country are expected to leave the market. Overall, 15 operators are currently in the process of withdrawing from the market, revealed the regulatory watchdog. While Lotterilsynet did not name Kindred, it referred to the leading gaming and betting giant as “the company behind Unibet.”

In addition to Unibet, the gambling regulator confirmed that bet365, Come On, Betsson, Betsafe and Nordicbet are about the withdraw from the gambling market in Norway. Further game sites that are going to leave the market, according to Lotteritilsynet, include Bingo, Major player, Maria Casino, Norway’s vending machine, CasinoEuro, The People’s Republic, Mobile bet, GetLucky and The mobile vending machine.

The announcement comes after Kindred led a lengthy legal battle for its presence in the market. In 2019, the gambling regulator in the country ordered the company’s subsidiary, Trannel, to discontinue its offering for Norwegian customers. Trannel, the company behind the brands Bingo and Unibet, among others, disagreed with that request and decided to appeal the legality of Lotteritilsynet’s order to discontinue its offering.

Last year in June, the Oslo District Court ruled in favor of the regulator. This resulted in Trannel being warned of daily compulsory fines unless it exited the market. Kindred’s subsidiary then filed a complaint against the fines which was ultimately rejected by the Borgarting Court of Appeal back in June this year. Now, in light of the latest announcement, it looks like the end of the years-long legal battle has come.

“The company behind Unibet, Betsson, ComeOn and Bet365 has operated illegally in Norway for several years. Now they are in the process of withdrawing from the Norwegian market after we have carried out inspections against them,“

reads a statement released by Lotteritilsynet

The Country’s Market Is No Longer Attractive to Illegal Operators

The gambling regulator in Norway explained that its market is no longer attractive for “illegal gambling companies.” It said that payment processing and illegal TV advertising bans work well.

Moreover, Lotteritilsynet said that the withdrawal of illegal gambling operators from the country shows that its regulations are effective. The regulatory watchdog also said that such operators find it more difficult to offer their services in the country.

“This is a company that is neither allowed to offer nor market gambling to Norwegians. That several of the largest gambling companies that operate illegally in Norway withdraw will prevent gambling problems and contribute to a safer and more responsible gambling offer in the Norwegian market.“

Henrik Nordal, director of the Lotteritilsynet

Henrik Nordal, Lotteritilsynet’s director, explained that the aforementioned brands offered their services to Norwegians without the necessary permissions. According to him, their withdrawal will help reduce problem gambling and contribute toward the health of the regulated gambling market in the country.

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Operating within different gambling markets requires licenses, especially on the Old Continent. With one of the strictest gambling-related laws, Norway’s market is closely monitored by local authorities. Back in 2019, the country’s Lottery Authority, Lottstift, urged Trannel International Limited, a company owned by one of the biggest gambling operators in the world, Kindred Group, to discontinue its offering for customers in the country.

Trannel, the company behind the brands Unibet, Mariacasino, Storspiller and Bingo, disagreed with that decision and filed an appeal which was consequently rejected by the Ministry of Culture and Equality, as well as the Lottery Board in January 2020 and March 2020 respectively. Then, in February 2022, Lottstift issued a notice of a compulsory fine against Trannel while in June the same year, the Oslo District Court confirmed the legality of the Authority’s decision to implement a suspension against Trannel.

After that, the Lottery Authority imposed a compulsory fine of NOK 1.2 million ($108,600) per day against Trannel. At the time, the gambling watchdog said that the fine would be valid until the operator discontinues “the illegal gambling offer in Norway.” Not unexpectedly, Trannel filed a complaint against the fine which was rejected by the Ministry of Culture and Equality, as well as the Lottery Board. Now, the Borgarting Court of Appeal also rejected Trannel’s appeal, siding with the Lottery Authority in the country and effectively putting an end to years-long legal battles.

Lottstift Urges the Company to Exit Norway

The Borgarting Court of Appeal’s decision was announced only recently, and it confirms that Lottstift was right to ask the company to withdraw from the gambling market in Norway. Anette Trettebergstuen, the country’s Culture and Equality Minister, explained that the latest court decision acknowledges that “the Norwegian exclusive rights model is in accordance with European Economic Area (EEA) law.” She also spoke about the result of the lawsuit, explaining that it comes as no surprise.

“The result is not exactly surprising, as this lawsuit joins the series of several other lawsuits in the gambling field where the state has been fully supported each time.“

Anette Trettebergstuen, Culture and Equality Minister in Norway

The Lotteries and Foundations Authority’s director, Atle Hamar, also commented on the topic. He explained that the latest court decision confirms that the Authority was correct to impose a suspension against Trannel. Given the court’s decision, Lottstift anticipates seeing the company “withdraw completely from the Norwegian market,” said Hamar in conclusion.

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Norway plans to introduce DNS blocking, barring offshore gambling sites from offering their products to local customers. This measure has been talked about for more than a decade and may finally become a reality.

The proposal is backed by the current minister of culture, Anette Trettebergstuen, who hopes to ban offshore sites from 2024. Unlike her predecessors who rejected the idea of DNS blocking, Trettebergstuen believes that the measure would make it very hard for companies to reach local audiences.

The DNS blocking, many believe, will protect Norsk Tipping, Norway’s gambling monopoly, from foreign competition. The new law will be proposed this fall and if approved, may come into power on January 1, 2024.

Under the new rules, the Norwegian Gambling Authority will be responsible for the implementation of the ban. The regulator will have the power to ask internet service providers (ISPs) to block certain websites and gambling companies from accessing Norway.

The Battle Isn’t Going to Be Easy

The measure goes against earlier projections that Norway would eventually introduce a licensing model like Sweden and Denmark. In fact, only The Progress Party (FRP) seems to be supporting this idea currently.

FRP member Silje Hjemdal addressed the matter, sharing her skepticism about the DNS blocking. According to her and other critics, the measure might not have the expected effect. In addition, opponents believe that blocking such sites is censorship that infringes on customers’ privacy.

While the Conservative Party is against the introduction of a licensing regime, it will likely oppose the current proposal. While the measure seems similar to the one proposed by the conservatives in 2021, the party currently claims that blocking would be inefficient because of how simple it is to circumvent it.

The DNS blocking proposal has been in limbo for a while, without significant progress being made. When the measure was out for consultation in the fall of 2021, it attracted strong opinions from both gamblers and operators.

The Norwegian government emphasized that not all offshore websites will be blocked but rather a number of brands deemed to be dangerous. However, it is likely that the DNS blocking might also lead to legal battles between the Norwegian government and gambling operators.

Betsson, for example, has previously slammed the efforts to introduce DNS blocking as a measure that breaches the EEA agreement. Trettebergstuen said that she is aware that any measure that limits the gambling juggernauts’ reach will be met with resistance. However, she vowed to not give up.

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