( Click to Enlarge )
Kindred Group may face a penalty that reaches nearly NOK 437 million (USD 48.8 million). The fine stems from an illegal gambling offer in Norway. The brand’s gaming site Unibet is one of the primary targets of this warning.
Kindred Group Receives Severe Warning From Lottery Authority
Renowned online gambling company Kindred Group has recently been served a severe warning from Norwegian regulators. The company may potentially face a penalty fee in excess of NOK 437 million, or roughly USD 48.8 million.
The Norwegian Gambling Authority has imposed a possible penalty fee on Kindred Group in excess of $48.8 million in response to illegal gambling activity allegations.
Kindred Group is the company behind a handful of online casinos that have been named in this investigation. The brands involved include Unibet, Maria Casino, Storspiller and Bingo.com. These online gambling sites will receive a collective forced fine of about NOK 1.2 million ($133,888) per day until illegal activities cease.
According to the Gambling Authority, Kindred subsidiary Trannel is offering gambling activity illegally to Norwegian citizens. Trannel International Ltd. is responsible for operating the Kindred casinos listed earlier. The daily penalty is to remain in place until the amount reaches the company’s annual gross profit. This is where the Norwegian Gambling Authority has gotten the NOK 437 million number.
The issue arises because Trannel’s operators are accessible to Norwegian players. This is in spite of the fact that Trannel does not directly operate in Norway. The accessibility issue is what has made the Authority decide the activity is illegal.
The NGA notice informed Kindred Group that the fine would start two weeks after its final decision on the case.
Norway Has Made a Long Case Against Kindred and Its Subsidiaries
This back-and-forth has been an ongoing issue for Kindred since 2019. In April 2019, the Norwegian authorities denied Trannel the ability to offer Norwegians gambling activities. The decision was made under what Kindred believed to be unclear circumstances.
Trannel appealed the decision to Norway’s Ministry of Culture, which holds final say in these matters. It also reached out to the Lottery Board, but neither regulatory body offered satisfactory communications.
In addition, Trannel asked the Oslo District Court to reexamine the case. Trannel wanted the court to decide on the validity of the initial decision. According to the initial decision, Trannel’s deadline for compliance was 12 March 2020.
Atle Hamar, director of the Lottery and Foundation Authority, said, “When a gambling company that operates illegally in Norway can make NOK 437 million from its illegal activity within a year, we owe it to the Norwegian people to do what we can to stop the illegal activity.”
All three regulatory authorities have denied Trannel’s requests for deferred action regarding the initial decision.
In further comments following the denied appeals, Hamar noted:
“We take seriously the fact that the illegal gambling offer has not yet ceased. Therefore, the Lottery Authority announces that we will now make a decision on enforcement action if Trannel does not stop offering illegal gambling in Norway.”
He also said that the Lottery Authority has “on several occasions asked Trannel to provide information on how they will comply with the decision, without the company having followed up on this.”
Kindred Group Pushes Back Against Norwegian Accusations
The Lottery Authority has said that it is willing to consider waiving these severe fines if certain conditions are met. However, Kindred is steadfast in its opinion that it has not done anything illegal.
Kindred Group has published an interview with Rolf Sims, the Norwegian public affairs manager for the brand. In this interview, Sims defends Kindred’s actions.
Sims argues that Kindred has no intention of leaving the Norwegian market, especially under current circumstances. He says it is no more illegal for Norwegian players to access their sites than to shop on Amazon or eBay.
Sims went on to express strong opinions about the state of Norway’s current laws. He cited “flagrant incompatibility” between Norwegian law and the broader EEA law.
“In failing to organise a transparent licensing regime and conducting a truly consistent gambling policy, we feel that the fundamental freedoms within EEA law are systematically being violated by Norway, to the Norwegian Government’s advantage,” Sims says.
The interview also hinted that Kindred was pressing the matter to spotlight Norway’s monopoly on national gambling.
“Ensuring compliance with national and international laws contributes to a sustainable society. This also extends to Norway. A comprehensive judicial review of the legality of the order issued in 2019 and the gambling monopoly is for the benefit of Norwegian society, consumers and vulnerable players.”
The final decision from Oslo District Court is expected in May 2022.