The Kindred Group, a prominent gaming company, is currently embroiled in a legal dispute with Norwegian authorities over alleged unlicensed operations in the country. Facing a daily fine of NOK 1.2 million ($111,902) since October 5, the company remains defiant, insisting on its right to operate and challenging the imposed penalties.
Legal Background:
Earlier this year, Lotteritilsynet, the Norwegian Gaming Authority, issued a cease-and-desist order to Kindred, warning of fines if they continued their operations. The directive specifically targeted Kindred’s Maltese subsidiary, Trannel, accusing it of allowing Norwegian customers to gamble, thereby violating Norway’s strict gambling monopoly.
Appeals and Rejections:
In response to Lotteritilsynet’s order, Kindred lodged an appeal, which was subsequently rejected by the Oslo District Court. Despite these setbacks, Kindred continued its operations, prompting Lotteritilsynet to impose the daily sanction fee. Undeterred, Kindred is once again appealing the decision, expressing confidence in a favorable outcome.
Kindred’s Position:
Henrik Tjärnström, CEO of Kindred, asserts that the company is licensed in Malta and believes that under current European economic legislation, Norwegian customers have the right to play on foreign gambling sites. He challenges the notion that Kindred even has operations in Norway, emphasizing the legality of their actions based on European regulations.
Optimism Amidst Legal Challenges:
While acknowledging the difficulties faced in local Norwegian courts, Tjärnström remains optimistic about the ongoing legal battle. He highlights that the appeal process will provide a clearer perspective on the broader implications of the case, transcending the jurisdictional limitations of individual courts.
European Economic Legislation and Cross-Border Gambling:
Tjärnström’s argument hinges on the assertion that European economic legislation supports the freedom of consumers to access gambling services across borders. This perspective raises questions about the compatibility of Norway’s restrictive gambling monopoly with broader European legal frameworks.
The Impact on Kindred’s Operations:
The imposition of daily fines has financial implications for Kindred, with a potential loss of NOK 1.2 million per day. Despite these challenges, the company maintains its commitment to continue operating during the ongoing legal proceedings, indicating its confidence in a favorable resolution.
Industry-Wide Ramifications:
The outcome of Kindred’s legal battle extends beyond the company itself, potentially setting a precedent for how international gaming operators navigate regulatory landscapes within individual European countries. The conflict sheds light on the tension between national gambling monopolies and the principles of a unified European market.
As Kindred Group persists in its legal battle against the Norwegian Gaming Authority, the implications of this conflict resonate far beyond the company’s immediate concerns. The clash between national regulatory frameworks and broader European economic legislation underscores the evolving landscape of the online gambling industry. The ongoing legal proceedings will not only determine Kindred’s fate in Norway but may also influence the future dynamics of cross-border gambling within the European Union.