Norway Passes Law Similar to UIGEA

February 25, 2010 | News Category: Gaming Law

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At the same time that many in the United States are putting great efforts into getting out from under the UIGEA (Unlawful Internet Gambling Enforcement Act), Norway is introducing a similar act in their country.

The new law, which has not yet come into effect, simply bans the processing of online gambling payments that are unauthorized. In Norway, in order for a law to be officially recognized as such, it needs to be passed by Norway’s parliament, the Storting, and it also needs to receive royal assent. The Storting had already approved the rule, and royal assent has now been given to the new law, Norway’s Payment Act.

Since Norway and Sweden separated their monarchies from each other in 1905, all laws that the government of Norway wishes to pass need royal approval, or royal assent. Since 1905, royal assent has been given to every law that the government has wished to pass.

It should be noted that all online gambling payment transfers are not banned by this law, but only those that are made from online casinos that do not have the correct licensing. It seems that online casinos that wish to be able to legally offer their services to Norwegians will need to get licensing from the Norwegian government.

Although Norway is not actually form a part of the European Union, it is part of the European Economic Area. Belonging to the European Economic Area comes with both benefits and responsibilities. The countries that are part of the EEA can benefit from the EU market, and also agree to follow the rules regarding the European Union’s internal market regulations.

The EU law regarding online gambling says that EU members do not have to get domestic licensing in another EU country, and can simply operate under the license that they already have. There have, however, been a number of EU member states that have disregarded this Internet gambling law, and have passed their own protectionist laws instead. At this time, the EU is trying to bring all their member states in line with this policy, which makes one wonder how they will deal with a country such as Norway in this regard.

On a somewhat amusing note, this law is set to take effect on June 1st, 2010. This is the same date that the UIGEA will be enacted in the United States, unless Barney Frank and his supporters managed to abolish the UIGEA, and have the new online gambling act approved by Congress.