Norwegian government battles back against Kindred’s Norsk Rikstoto challenge
Ministry of Culture and Equality rejects operator’s position and argues licence award is legal and fair under existing legislation
The Norwegian government has dismissed Kindred Group’s suggestion that the horseracing betting licence in the country should be available for public tender.
In the latest industry-specific legal battle in the Nordic nation, and as reported by EGR on 14 July, Kindred is challenging Norsk Rikstoto’s position as the de facto horseracing licence holder in Norway via its Trannel subsidiary.
The Stockholm-listed firm has pushed back against Norsk Rikstoto’s position under anti-competition and public procurement rules.
An initial challenge to the Oslo District Court has now been redirected to the EFTA Court in Luxembourg for an advisory interpretation of EEA law.
Norsk Rikstoto was granted a 10-year extension to its licence in December, but according to documents seen by EGR, Kindred has said the awarding of the licence to the group is “rigged in the favour of a specific national actor”.
Kindred continues to assert that privately owned Norsk Rikstoto has been handed the licence without a due competition process.
Now, the Norwegian government has moved to explain its position, with the Ministry of Culture and Equality responding to EGR‘s request for comment.
In a statement, the government department said it was confident in its position of awarding the licence to Norsk Rikstoto.
The statement read: “The Norwegian Ministry of Culture and Equality’s position is that the exclusive right of Norsk Rikstoto is legal and in accordance with EEA law.
“The exclusive right is a permit with a strong degree of public control, based on weighty gambling policy considerations. The exclusive right cannot be considered a public contract covered by procurement regulations.
“The Norwegian Ministry of Culture and Equality has no further comments regarding this matter.”
Responding to the government’s comments, Trannel’s lawyer for the case Thomas Nordby said: “Trannel International Limited takes the view that the Norwegian state’s characterisation of the exclusive right as an authorisation cannot be decisive.
“The exclusive right awarded to Norsk Rikstoto, a non-profit-making foundation governed by private law, has the characteristics of a contract for pecuniary interest on the provision of services where the consideration consists of the right to exploit the services, and therefore, Trannel International Limited takes the view that it constitutes a “services concession” within the meaning of directive 2014/23/EU.”
The case continues.