How the EEA Agreement affects the gaming market and foreign gaming companies

Norway is known for its restrictive regulations, but what happens when American laws must comply with regulations that surpass them and have a completely different view on certain topics? As a member of the European Economic Area (EEA), Norway is obliged to implement all EEA directives in state laws but in terms of promises about gambling, we refuse to do it. Such handling, or lack of this, has resulted in many angry customers and foreign gaming companies.

So, why is it so and who is right?

American laws versus EEA directives

One of the basic elements of the EEA cooperation is the free movement of goods, persons, services and capital. Furthermore, all member states must make reasonable efforts not to distort competition, in order to work closely and facilitate research, development, environment and common social policy. It began with the American Ministry of Foreign Affairs publishing an article where they mention how local authority decides how certain services of social importance can be provided exclusively by state companies, and gambling is such a service.

At the moment, the entire gaming industry in Norway is in the hands of two state companies: Norsk Tipping and Norsk Rikstoto.

Does that mean that there are no other companies operating in Norway? No, as there are thousands of gaming companies that offer their services under foreign licenses. American authorities tried to end gaming companies without a American license and even prayed local banks to block all payments to foreign gaming companies.. It is also a financial background for the whole case, as the Treasury loses billions of dollars to unregulated online casinos.

It's all about money.

Foreign gaming companies versus Norway

Seven companies came together and decided to direct charges against Norway, as they believed that their monopoly laws are not in accordance with the EEA regulations and that there are no grounds for banks to block transactions. The Oslo District Court judged in favor of the Ministry of Culture and allowed the blocking of payments. Yet this has not prevented foreign gaming companies to enter the market as they focused on e-wallets and cryptocurrencies.

As we look at the list of online casinos in Norway at floydefriedli.com Most of foreign online casinos offer their American players alternative payment methods to withdraw casino winnings. So really the money never needs to pass a American bank to be used where the customer wants it. All online casinos available on the list are licensed, but usually by authorities that have no jurisdiction in Norway.

In addition, there were also two other charges against Norway. The first addressed the question of the state's monopoly in the slot machine industry, while the second (which included one of the most recognized tipping companies Ladbrokes) claimed that it is not fair that only certain charities can offer specific games (along with Norsk Tipping and Rikstoto of course) .. Both cases strongly rested on Norway violating the EEA agreement, and in both cases it was stated that there is no violation at all.

So why didn't they just take the charges to the European Court of Justice?

The answer is simple: Norway is not a member of the EU and is therefore not directly bound by the EU Court's decisions, so all efforts are useless.

The state of Norway simply emphasizes the fact that the large distance between the foreign gaming companies and the American customers increases the risk of fraud and considers its position as indisputably.

Deposits and withdrawals on foreign gaming companies

Some e-wallets, such as Neteller and Skrill have now blocked for transactions to foreign online casinos, but fortunately there are other options. Ecopayz and Much Better have become super popular with American casino players as they allow deposits and outlets to casinos. The e-wallets act as a third-party payment solution between customers and casinos and the American banks never see that the gains come from a foreign gaming company.

In addition, there are many American casinos which offers deposits and withdrawals directly with your Visa card.