Betting is regulated by three decrees, namely the 1995 Lottery Act, 1927 Totalisator Act, and 1992 Gaming Scheme Act. The three laws work in tandem to control all types of gambling in Norway. Violation of the acts is considered a criminal offense, punishable with imprisonment and/or monetary fines.
The Gaming Authority possesses the administrative power to impose coercive penalties or sanction non-compliant betting companies. It should be noted that the three laws do not ban betting on unlicensed platforms. Thus, no one can be apprehended for gambling in unregulated betting sites.
The Lottery Act
Gambling is legally defined in the Lottery Act, Section 1(a). It is any activity where participants bet hoping to win a prize after random results have been drawn, guessed, or analyzed in any other procedure. These activities include sports betting, casino gaming, traditional lotteries, slot machines, and bingo. Private or non-profit poker operators may arrange competitions but do not need a permit as long as they comply with section 5 of the Lottery Act.
Private operators have a limited right to apply for gambling licenses. But commercial operators do not qualify for complete licensing. The Lottery Act also pertains to private betting companies that offer marketing and distribution of lotteries. Unlicensed lotteries are illegal, according to section 6 of the same act. Only socially beneficial and humanitarian organizations are eligible for licensing. Plus, the profits from lotteries must be used for a good cause.
The Totalisator Act and Gaming Scheme Act
The two legislations grant Norsk Tipping AS and Foundation Norsk Rikstoto exclusive rights to provide most of the gambling services in the country, land-based and online. Marketing and distribution of unlicensed betting products and services are prohibited in section 1(3) of the Totalisator Act.