As reported by iGB the Norwegian Lottery Authority (Lotteritilsynet) will monitor nine banks in the country to ensure compliance with a ban on processing transactions with unlicensed operators.
Under Norwegian law, banks are prohibited from facilitating deposits and withdrawals on sites lacking proper licensing.
The regulator has confirmed its intent to establish a system of "compliance supervision" for each of the nine banks.
Gena Novikov, Head of Consulting of 4H, comments on the situation:
"Every nation that has embraced legalized gambling and implemented licensing aims to achieve a 100% legal market. This is particularly challenging when considering the online sector, and, following our approach, it involves addressing two key objectives:
To address these challenges, we at 4H Agency identify two categories of tools that authorities should employ:
Active tools: These include financial restrictions, legal accountability, domain blocking, and more.
Passive tools: These involve an open market with comprehensive regulation across all verticals, fair financial obligations for operators, clear regulatory guidelines, consistency from the regulator, and equitable application of the law.
Let's recall that in Norway online gambling is a state monopoly, as a result, the regulator can only use active methods of combating offshore operators.
As a consequence of this governmental approach, we witness the gaming regulator intervening in the banking sector, a rather unconventional step in global practice.
We remain hopeful that Norway will align with the global trend of locally regulated open markets, and in the meantime, we will closely monitor the situation.
Under Norwegian law, banks are prohibited from facilitating deposits and withdrawals on sites lacking proper licensing.
The regulator has confirmed its intent to establish a system of "compliance supervision" for each of the nine banks.
Gena Novikov, Head of Consulting of 4H, comments on the situation:
"Every nation that has embraced legalized gambling and implemented licensing aims to achieve a 100% legal market. This is particularly challenging when considering the online sector, and, following our approach, it involves addressing two key objectives:
- Making illegal offshore operations difficult and costly.
- Making legal operations as appealing as possible for both operators and players.
To address these challenges, we at 4H Agency identify two categories of tools that authorities should employ:
Active tools: These include financial restrictions, legal accountability, domain blocking, and more.
Passive tools: These involve an open market with comprehensive regulation across all verticals, fair financial obligations for operators, clear regulatory guidelines, consistency from the regulator, and equitable application of the law.
Let's recall that in Norway online gambling is a state monopoly, as a result, the regulator can only use active methods of combating offshore operators.
As a consequence of this governmental approach, we witness the gaming regulator intervening in the banking sector, a rather unconventional step in global practice.
We remain hopeful that Norway will align with the global trend of locally regulated open markets, and in the meantime, we will closely monitor the situation.
