Web-based Money Transaction Bans in Norway

Recently, Norway’s parliament passed a new law that bans Norwegians from transaction money to online casinos and poker rooms. The enacted law amends three preexisting laws and particularly defines online-based transactions as subject to earlier defined “mediating service” clause. The Ministry of Church and Cultural affairs proposed the law in September 2008 as anti-gambling sentiment grew over spiraling slot-machine addiction. The opinion of Rolf Sims, legal advisor of the ministry, the bill was “on the drawing board” as early as Oct. 5. Sims said to the press at the time “The anti-gambling lobby has got the wind in its sails.” He added “It would be political suicide for any government minister to suggest legalizing gambling.”

However, the bill has got little purchase in several circles such as the European Union and the Norwegian Financial Services Association (FNH). Despite the fact that, Norway is not an EU member state but as a part of the European Economic Area, the Scandinavian nation has drawn fire from Brussels for encouraging Germany, France, and the Netherlands to keep their lusty gambling markets closed. In the meantime, The FNH has pointed out some difficulties American legislators have faced in implementing the Unlawful Internet Gambling Enforcement Act. Earlier The UIGEA bans web-based transfers to Internet gambling sites as well but had got experience a myriad of enforcement setbacks since first having law in 2006.

FHN spokesperson Tonje Westby said, “Although the law amendments have been adopted in the Norwegian Parliament… regulatory guidance might need to be revised.” he added “If politicians choose to introduce revised regulations, it will take some months before the law amendments come into force.”  He went on to say, “This (prohibition) will be very difficult to enforce, and those who really want to gamble on the Internet will find other ways to do so. Norwegians susceptible to problem-gambling behavior will most likely be persuaded to set up foreign bank accounts and use foreign payment systems outside Norwegian regulatory control.” Norwegian MPs do not announce a definitive enforcement timeline till now; some legal commentators said, “Delays could mean the ban will not take effect before mid-2009.” So, it is time to see when the new will be exercised.