Norway's gambling regulation and payment ban under investigation
Norway’s efforts against the gaming black market might have exceeded reasonable bounds. The Norwegian government is now under renewed scrutiny as the European Free Trade Association Surveillance Authority (ESA) opens a preliminary investigation into the country’s Payment Transaction Ban (PTB) — a ban that critics say is overreaching and incompatible with European Economic Area law. The development was confirmed during the recent gaming conference, Spillkonferansen 2025, and could have lasting impacts on the ongoing debate over gambling regulation in Norway.
“We have good news,” said Thomas Nordby from the Schjødt Law Firm, legal advisor to the Norwegian Trade Association for Online Gaming (NBO), addressing a packed audience. “We filed a complaint on 8 November 2024, and unlike many others, ESA showed immediate interest. They’ve already called for meetings — not just with case officers, but with the head of the Internal Market department.“
The complaint, lodged by NBO, outlines how the PTB, originally introduced to stop unlicensed gambling operators from accessing Norwegian consumers, now blocks a wide range of legal transactions involving foreign service providers. In short, the ban has ballooned beyond its original purpose.
“The widened application of the PTB covers legal transactions to and from undertakings established in other EEA States,” the complaint reads. “This includes legal gambling transactions and non-gambling related transactions.“
Not just gambling: hotels, crypto, salaries blocked
According to Rebecca Hodnekvam from the Schjødt Law Firm and a key legal architect behind the complaint, the PTB’s scope has created real-world consequences for ordinary citizens and legitimate businesses alike.
“It impacts Norwegian citizens using legal services abroad, including casino hotel stays or dining,” she said during the panel. “Even when services are not directed at Norway, the payments are being blocked.“
The official complaint reinforces this, stating that Norwegian customers are being “hindered from accessing other legal services provided by gambling providers, such as hotel and restaurant services,” and even from using “third-party services such as eWallets and various other financial services.“
The ban also hits foreign gambling operators and crypto platforms, many of whom are legally operating under EEA regulations in their own countries. Their services are still cut off from Norwegians if banks block associated transactions.
“Even though none of the transactions fall under the scope of the PTB, holders of Norwegian bank accounts or credit cards are effectively hindered,” the complaint states. “This is particularly problematic for service providers in other EEA States that are not subject to Norwegian law.”
ESA’s growing interest
According to Nordby, ESA’s swift response is a positive sign.
“This is not a quick fix,” he cautioned. “But it is significant. ESA is now preparing a Request for Information to the Norwegian authorities. If that goes out, it signals ESA is entering the early stages of a treaty infringement procedure.“
He further explained that ESA rarely moves quickly unless it sees potential violations of European Economic Area (EEA) law. If Norway fails to respond satisfactorily, the matter could escalate to the European Free Trade Association Court, where ESA has a strong track record — winning up to 9 out of 10 cases.
“Once a letter of formal notice is issued, it usually means ESA has made up its mind,” Nordby said. “If the case proceeds, and Norway doesn’t adjust its legal framework, the country could be compelled to act by court order.”
Timing: a political tipping point?
The timing couldn’t be more sensitive. Norway is in an election year, and the ESA process could peak just as voters head to the polls. “If we see a formal ESA letter around the time of the 2025 parliamentary election, this could strongly influence the gambling policy debate,” Nordby noted.
“If a ruling pressures the state to align its monopoly model with EEA law, parties opposing a licensing model may be forced to reconsider,” he added. “The PTB complaint might become a pivotal force.”
Industry mobilisation
Both panelists called for the gaming industry to provide ESA with real-life examples of how the PTB disrupts legitimate services.
“ESA is only as good as the evidence we give them,” said Nordby. “Share your stories. Payment failures. Business disruptions. These matter.”
