Online Poker Legislation Nears as Norway Begins Impact Assessment

Norway’s parliamentary Culture Committee has ordered an impact assessment on proposals to liberalize the online gaming market.

Culture Committee Chairman Svein Harberg supports new laws to regulate online gaming. “We should look at all options to get gambling that is already taking place to be regulated,” he explained, referring to the current activity at non-Norwegian licensed sites.

Norway currently operates a duopoly with two licensed providers responsible for all gambling. A new government elected last year expressed its desire to open the Norwegian market to offshore operators, and license activities such as online poker which are prohibited in the existing legal framework.

A report on problem gambling four months ago classified poker as a relatively low risk form of gambling. A different report identified $120 million to $170 million in gross gaming revenues going to offshore operators with no tax benefit going to Norway.

The Culture Minister Thorhild Widvey has already used her existing powers to change gambling regulations to authorize a national live poker tournament and legalize home games played for low stakes.

The shape of the expected gaming legislation has yet to be decided. Initial proposals were delayed while the government prepared responses to concerns that reforms would have to comply with EU treaties.

Norway is not a member of the EU, but is a member of the EEA, an allied grouping which largely abides by EU treaty mandates.

Harberg said that the committee would seek to learn from the experience of other countries, including Sweden, the UK, Denmark and Finland before drawing up its own proposals.

“We have the advantage that we can pick the best of different solutions,” said Harberg.