A general introduction to gambling law in Norway

All questions

Introduction

Norwegian law does not differentiate between online gambling and its land-based counterparts, nor between different types of gambling. The Norwegian Gambling Scheme Act Section 2 utilises the umbrella term 'gambling schemes' to cover gambling activities (e.g., casino-styled games, wagering or sports betting or lotteries) that require a stake and may provide prizes as a result of a draw, guess, chance or any other procedure that is partly or wholly determined by a random event (i.e., the presence of total or partial chance).

Norwegian law interprets the condition of stake broadly, in that the provision of private emails or use of a telephone with payment beyond the normal rate will be treated as consideration.

The condition of prize encompasses money, objects or other tangible assets with economic value. In principle, anything of value could be considered winnings within the meaning of the Gambling Scheme Act. It follows from case law that items of negligible value (e.g., simple promotional items and symbols of participation, such as mugs, cups, diplomas, posters and t-shirts) fall outside the concept of winnings.

If the outcome of the activity is beyond the control of the individual, the activity will fulfil the condition of having a total or partial chance. This condition is always met where the winner is selected by draw or guess, such as in traditional lotteries. If the activity consists of several parts, only one part must contain an element of randomness in order for the condition of total or partial chance to be fulfilled. This includes activities where the chance of winning depends on both skill and randomness. It does not matter if the random element is present before or after the part of the activity where participants compete in knowledge or skill.

Pure skill gaming does not have the element of chance; therefore, it is not treated as a lottery under Norwegian law. For instance, chess is not considered gambling under Norwegian law, even though it includes a minor element of chance that could affect the outcome (white starting).

Norwegian law does not distinguish between betting on the results of a draw as opposed to entering it. Betting on the results of a lottery or otherwise partaking in gambling activities (licensed or not) is permitted for persons over the age of 18.

As a general rule, Norwegian gambling legislation prohibits the provision, marketing or distribution of any form of lottery that does not have a licence from the Norwegian Lottery and Foundation Authority in accordance with the Gambling Scheme Act Sections 4 and 6. This licence is generally only attainable where the organisation has a humanitarian or socially beneficial purpose (cf. the Gambling Scheme Act Section 18).

The Norwegian gambling monopoly and the acts upon which it depends are based on the notion that 'lotteries [and other gambling activities] should be conducted so as to prevent gambling addiction and other negative consequences of gambling, ensure that gambling is conducted in a responsible and safe form and otherwise facilitating the proceeds from gambling to non-profit purposes' (cf. the Gambling Scheme Act Section 1).

While any organisation may apply for a licence, licences to operate commercial gambling activities are not granted, as the state-owned companies Norsk Tipping (gaming) and Norsk Rikstoto (totalisator betting) hold the exclusive rights to provide commercial gambling services in Norway by virtue of the Norwegian gambling monopoly. Norsk Tipping is the sole legal provider of, inter alia, commercial casino-style games, igaming, wagering and sports betting, while Norsk Rikstoto offers horse race betting.

Licences to hold lotteries, land-based poker tournaments and bingo games may be granted to local, regional or nationwide organisations who have a humanitarian or socially beneficial purpose within the area in which the lottery is held.

Gambling is regulated on a national level.

Norwegians can legally gamble on foreign-based websites hosted by foreign-based gambling operators without violating Norwegian law, regardless of the legality of the gambling services being offered.

The Norwegian Lottery and Foundation Authority may pierce the veil if it suspects that a Norwegian operator with a predominantly Norwegian customer base locates its operations abroad in order to circumvent Norwegian law or where foreign-based operators align and facilitate their business in such a way to provide their services towards customers in Norway, for example by providing gaming services and customer support in the Norwegian language.

While a foreign-based operator might legally offer its services to Norwegian consumers, the Norwegian Lottery and Foundation Authority may still seek to hinder its business by enacting resolutions prohibiting Norwegian-based financial institutions and payment service providers from facilitating gambling-related payments between gambling operators (or their payment providers) and their customers.