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Court prohibits gambling company from operating

27 October 2008

Four Year Legal Battle Ends with Norwegian Gaming Monopoly Intact

After almost four years, the District Court of Oslo ruled in favor of its local gambling companies, in accordance with the Norwegian gambling law.

“This decision strengthens the Norwegian gambling law,” Culture Minister Trond Giske said. “Once again, Norway asserts its power and independence over foreign investors.”

The decision also indicates that countries have power over its gambling market, he added.

According to the verdict, the most practical means to protect the residents from the threat of gambling is through the gambling law implemented in the state.

The dispute started in 2004, when a British investor Ladbrokes would like to start a gambling business in Norway and was denied. Ladbrokes was infuriated and told that by doing so Norway is violating Rome treaty, EC instructions and the EFTA agreement.

After four years however, the court found out that the non-issuance of license is compliant with the agreement on EFTA and other European obligations. With that, Ladbrokes was penalize by ordering them to pay the Norwegian state damages amounting to NOK1.1 million (approx. €132,000).

Ladbrokes expressed dismay on the decision. “We are not satisfied with the verdict and we will study it carefully before we could plan on any future action,” Lasse Dilschmann, CEO of Ladbrokes said. “We will go on challenging state owned monopolies that has bad implications on both the gaming public and society.”

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