Oslo court rules in favour of govt in payment blocking case

The Oslo District Court ruled in favour of the government in the case over a ban on payment transfers to and from foreign gaming companies.

Norway.- The Norwegian government recently introduced new restrictions that seek to block online gambling payments. The European Gaming and Betting Association (EGBA), along with Entercash payments processor, brought a case in June against the Norwegian Ministry of Culture in Oslo District Court, but the latter has now ruled in favour of the government.

The Oslo court validated the Ministry’s decision on payment transactions related to online gambling. The banks have been asked to reject transactions both to and from those companies. However, the companies found a way by using third parties, and the regulator once again identified them.

EGBA and Entercash asked whether there was legal authority to ask the banks to reject the transactions and whether the order is compatible with Norway’s obligations under the EU Payment Services Directive.

The court said that it supports the Ministry on both of those issues. The conclusion indicates that the prohibition is based on Norwegian law and that the EU’s Payment Directive does not preclude such a national ban.

Moreover, the Oslo court said that Entercash’s claim that the payment block constitutes a business ban is not valid. The court said the ban only applies to transactions to and from gaming companies.

“We take note of the verdict. Now we will go through the premises of the verdict. Then we will consider an appeal,” said lawyer Jan Magne Langseth, representative of Entercash and EGBA.