Kindred Group fires back against NGA over potential £36m fine
Swedish operator doubles down on legality of its offering as it questions Norway’s ability to develop a consistent gambling policy
Kindred Group has hit back against the Norwegian Gambling Authority (NGA) for failing to develop a “transparent licensing regime and conducting a truly consistent gambling policy”.
The rebuttal comes after the NGA had threatened to hit Kindred with a potential £36m fine, accruing daily, for offering gambling services via its Malta-licensed subsidiary Trannel International.
The battle between Kindred and the NGA has been ongoing since 2019, with Kindred bringing the case to several courts of law to settle the matter.
Under Norwegian law the provision of online gambling services is limited to a monopoly of two state-run firms, Norsk Tipping, which operates sports betting and online casino games and Norsk Rikstoto, which is responsible for race betting services in Norway.
Kindred, via Trannel, runs the Unibet, Maria Casino, Storspiller and Bingo.com brands in the market.
In a retort, Kindred’s public affairs manager for Norway Rolf Sims detailed how the operator was not operating illegally in the market and a potential fine would go against EEA law.
Sims said: “The Norwegian authorities are of the opinion that Trannel is illegal, because its services are accessible to Norwegian customers. It is however not illegal for Norwegian customers to accept and participate in cross-border services, like Trannel’s.
“Furthermore, in failing to organise a transparent licensing regime and conducting a truly consistent gambling policy, we feel that the fundamental freedoms within EEA-law (European Economic Area) are systematically being violated by Norway, to the Norwegian government’s advantage,” he added.
Sims went on to compare Kindred’s cross-border offering as similar to that of eBay or Amazon in its legality.
He continued: “In the same way that it is not illegal for Norwegians to shop with eBay or Amazon, it is not illegal for Norwegians to participate in cross-border services, including lawful, regulated entertainment-based gambling.
“The bigger issue is the flagrant incompatibility of the Norwegian regime with the fundamental principles of and established case law pursuant to EEA law and the legal consequences attached thereto.
“The lack of a transparent and objective licensing regime and the inconsistencies of the current regime disregard what should be the core policy focus, protecting local consumers,” he added.
Elsewhere, Kindred confirmed Corvex Management LP had acquired a 5.29% share in the operator.
The New York-based hedge fund is owned by Keith Meister and was launched in 2011 and acquired the share on 11 February.