Fintech Fintech
by Martin on June 20, 2017

Norwegian banks forced to block gambling transactions

It is a common knowledge that the gambling and betting market in Nordic states is huge, and one of the largest share of the casino industry is contributed by Norway. However, Nordic states have been quite closed in terms of allowing new local and foreign companies to service its residents. Previously, there were hopes that Norway will open up its borders, yet in December 2016 all of these hopes were gone and recently Norway has begun fighting unregulated casino operators.

Norwegian gambling website Casinopå has stated that the Norwegian Gaming Authority (NGA) has required banks to stop processing gambling-related transactions. Most of these transactions are processed not by the banks directly, but via a certain third-party like Trustly or Worldpay. According to the findings from NGA, the total amount of the deposits processed via these payment systems was over 250 million US dollars (over 2 billion NOK) and in the months of January and February of 2017 there were over 500 million NOK deposited through the payment systems.

While many may agree that such a new practice will negatively impact the stocks of the listed casino operators with their major market share in Norway, like Kindred group, the spokespeople from the operators stated that this practice will have a little impact on their business. One of the main reasons behind such feelings is that private companies are still able to deliver a much better gaming experience, superior odds and better support than the state owned monopolies.

From the other perspective, the ban on the regular payment systems by the Norwegian Gaming Authority will give an additional boost the the bitcoin casinos and various other casinos and betting houses that allow deposits in the crypto currencies.

Nevertheless, a smart investor that in interested in the gambling sector shall definitely observe the changes in the cashing in and out methods in Norway to make a proper judgement on the future of the industry.

Source: http://www.casinopå

By Martin

Martin has been a Trader for 5 years now. He has experience in trading Forex, stocks, and cryptocurrencies. Aside from his trading career, he also worked for a UK news outlet as a web article writer and interviewer for 3 years. His insight on news and brokers have been refining for the past 4 years.

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