Operators refute Norwegian regulator’s payment blocking impact claims
Lotteritilsynet says payment blocking measures a success as various operators tell EGR Intel they have seen little or no impact
A number of major operators have told EGR Intel they have seen little or no impact on their business following the strengthening of payment blocking measures in Norway, despite claims by the regulator that the clampdown has been a success.
The differing views follow the March introduction of a ban on payment companies accepting transactions made between unlicensed operators and Norwegian players.
The Norwegian Gambling Authority (Lotteritilsynet) said it had secured support from major payment solutions providers Worldpay, Inpay and Earthport, as it looked to curb unregulated activity.
According to Lotteritilsynet, the three payment companies accounted for 65% of all online gambling payments made in Norway during January and February.
However, speaking to EGR Intel, a number of operators suggested the effectiveness of the ban had been overplayed by the regulator and local press, with prominent Norway-facing firms such as Kindred, Betsson and Cherry, among others, reporting no impact to their Norwegian business.
In a statement, the Lotteritilsynet said unregulated operators had potentially uncovered a loophole through the use of payment redemptions “where the transactions go through one form of payment”.
However, this was refuted by Kindred Group head of communications Alex Westrell, who told EGR Intel: “Our payment solution remains the same.
“We do however, from time to time, review our payment service providers in order to obtain the best possible customer journey for our customers,” he added.
Westrell also contended the basis upon which the regulator was attempting to block unlicensed operators.
“Kindred is an EEA regulated operator and as such we have the right to provide services to Norwegian residents and Norwegian residents have the right to receive services,” Westrell said.
“Our view is that Norwegian customers are free to transfer money to accounts outside of Norway.”
Lotteritilsynet director Linda Vøllestad Westbye said the ban was implemented to address activity that was “in violation of Norwegian law”.
Figures for Norwegian monopoly Norsk Tipping revealed that foreign operators made up 14% of the local market in 2016.
The payments ban followed a recent assessment made by the government to better protect the exclusive rights of the monopolies rather than liberalise the market as seen in Sweden.