Legal Developments in Norway and Kentucky

December 15, 2008 | News Category: Gaming Law

1 Comment

Late last week two events took place, in Norway and in Kentucky, which are likely to define the legal environment of online gambling in 2009.

The Norwegian parliament finally passed its version of the draconian Unlawful Internet Gambling Enforcement Act (UIGEA), which was passed by the United States in 2006. Like the UIGEA, the Norwegian act prohibits financial transactions between its citizens and online gambling operators. The only good news for the Norwegian online gambling industry is that the act would not be effective till mid 2009 because the attendant regulatory framework has yet to be drafted. It is not only the online gambling community in Norway that is upset at the turn of events. Norway’s Financial Services Association, like its counterpart in the United States, is concerned about the role that the financial institutions will be asked to play. The association has questioned exactly how the legislators plan to enforce this ban.

This development has not come suddenly and was expected sooner or later because the proposal had been mooted in 2007. There was a big hue and cry then as it was widely reported that the move was aimed at creating a monopoly for Norske Tipping, the government owned gambling services provider. It was felt that the ban on online gambling has little to do with prevention of underage or problem gambling. However Rolf Sims, a legal adviser to Norway’s Ministry of Culture, had then denied this. He said that there was a fierce public opinion against gambling and it would be political suicide for the government to even suggest legalizing gambling.

Across the Atlantic Ocean, in Kentucky, a three-judge panel heard the appeal filed by iMEGA against the provisional order of the lower court. The lower court had upheld the order of the Kentucky Governor to seize 141 domain names of online gambling establishments. The judgment is expected only in early 2009 and so the status quo would continue. iMEGA argued on expected lines focusing on the fact that the due processes of law had not been followed. But what must have taken the online gambling industry by surprise was the strident tenor of the state lawyer Eric Lycan. Some of his statements do not auger well for the online gambling industry. He said that the online gambling industry is a "massive, global, offshore criminal enterprise". He said that the owners of online gambling sites are willfully violating laws of every state because they think that they cannot be caught. Gambling at the Horseshoe Casino in Indiana across the river is illegal for Kentucky citizens. Lycan opined that buses taking gamblers to that casino could be termed as illegal gambling devices and be seized by the state of Kentucky. American online players can only wish that with the new and hopefully more favorable administration in Washington next month saner counsel will prevail over the states as well.

Comment(s) on this news

tony blair - December 19, 2008
what the heck is the deal with this I can't believe this is actually happening.