Norway intends to DNS-block illegal operators to increase player protection
The Norwegian Government, Regjeringen, has backed the proposal from the Norwegian Gaming Authority, Lotteritilsynet (NGA), which states that Domain Name System (DNS)-blocking of websites owned by unlicensed operators in the country will prevent gambling problems and increase player safety amongst the Norwegian players. The NGA has already filed the proposal to amend the Gambling Act of the country and allow the regulator to ask Internet Service Providers (ISPs) to DNS-block illegal domains. The decision is pending and the NGA is confident that the new law will be in play by 2024.
The NGA has filed a proposal to amend the Gambling Act of the country and allow DNS blocking of illegal domains.
©Christoffer Engström
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Gambling activity in Norway is growing at a rampant pace as more and more people get a chance to indulge in iGaming via their mobiles and laptops. In addition to that, more and more gambling operators are in queue to enter the regulated gambling market of Norway. In order to do so, they must be issued a legitimate gambling license for the Nordic state by the NGA after filing their respective applications. However, several operators skip the queue and make their gambling platforms available to Norwegians without a valid permit. This is not permitted under the Gambling Law currently instated in the country. Unlicensed gambling activities threaten the integrity of gambling and compromise the safety of all players that gamble on them. According to a survey that was conducted in 2019, problematic gambling traits were detected in 55,000 Norwegians. Furthermore, 122,000 individuals in the country were at risk of developing these harmful traits.
The 2019 survey was conducted four years after the previous survey, which was conducted in 2015. During that survey, problematic gambling traits were detected in 21,000 players, while 88,000 were at risk. An increase in gambling operators, games, and lucrative offers has lured several individuals towards gambling, thereby increasing the overall gambling activity in the country. Along with gambling activity, the problems related to it are also on the rise. The NGA believes illegal gambling operators are the root cause of increased gambling problems in Norway. Licensed operators have to follow all rules that fall under the Gambling Act of the country. These rules include multiple measures the licensed operators must have in place to ensure player safety. When an unlicensed operator enters a regulated gambling market of any jurisdiction, it does not necessarily follow any rules set by the regulator of that particular jurisdiction because it operates illegally.
Like other gambling regulators worldwide, the Norwegian regulator has been engaged in a continuous and persistent battle with unlicensed operators who target Norwegian players. In July 2021, after seeing harmful gambling numbers spike, especially amongst the young population, the NGA decided to impose stricter sanctions on any detected gambling operator in an effort to discourage such operators from entering the Norwegian gambling market without a gambling permit. The updated Gambling Act was in play a few weeks later. Almost two years later, the NGA will expect an addendum that allows the regulator to contact ISPs and DNS-block all unlicensed gambling operators in the country. The DNS-block mechanism is typically used to keep websites carrying spam, phishing, and other malicious threats at bay by blocking user access to them. The same mechanism is expected to be in place in Norway by 2024 as the NGA steps up in the ongoing battle against a horde of illegal operators.
Banks monitoring illegal transactions and notifying the regulator
The gambling authority of Norway intends to use every arrow in its quiver to tackle unlicensed operators in its gambling market. The announcement of stricter sanctions for illegal providers may have deterred a few entities, but several operators continue to offer their gambling services to Norwegians without a necessary permit. After noting such activity, the banks in Norway were encouraged to report all transactions between Norwegian players and unlicensed operators to the regulator.
In addition, these banks also notify their customers every time a transaction with an unlicensed operator is initiated. Some players participate in gambling offered by unlicensed operators because of their lucrative bonus offers, while others find it difficult to differentiate between legal and illegal gambling sites. Hence, the notifications from the banks help players realize that the platform they are gambling on is illegal, after which the players leave the platform without adding any funds.
There are a total of ten banks in Norway, and back in 2020, six out of those were regularly notifying their customers during transactions with illegal operators. Last year, two more banks started doing the same. Furthermore, seven banks also chose to shed light on the consequences of transactions with illegal operators for their customers. However, during loan applications, only one in four banks in Norway informs the customers about the consequences and effects of harmful gambling.
Compulsory fines will continue till DNS-blocking is enabled
The NGA has strictly monitored the Norwegian gambling market to ensure a high standard in that segment. The regulator has not shied away from imposing fines on renowned gambling brands in the past and intends to continue with the same until the DNS-blocking mechanism is approved and in play by 2024. In the past, the regulator has issued fines to brands that are owned by Kindred and Bettson, with the former gaining a lot of traction since 2019.
Kindred’s brand Trannel landed in trouble towards the end of last year when daily fines were reinstated because the operator did not have a Norwegian gambling license and still had features that could help Norwegian nationals gamble on their platform. After receiving a notice and fine for this violation, Kindred tweaked Trannel’s interface to remove all Norway-related options, including the language and removal of the Norway flag from country selections. However, the platform was still available in the country without an NGA-issued license. Hence, a daily fine of NOK 1.2 million (approximately €120,000) was imposed on the operator.
These daily fines will also be imposed on other unlicensed operators until the DNS-blocking proposal receives a thumbs-up. After the addendum is officially confirmed, the Norwegian Gambling Authority will detect, analyse and block illegal gambling websites immediately via the country’s ISPs.
