Kindred Group Under Fire from Norwegian Regulator
The Norwegian gambling regulator has issued a stern ultimatum to Kindred Group: stop offering unlicensed online casino games and sports betting through its Unibet brand, or prepare for severe financial penalties. The potential Unibet Norway fine is set at NOK 1.2 million (approximately $135,000) for each day the company remains non-compliant. If Unibet continues its operations, the cumulative fine could reach a colossal NOK 437 million ($48.6 million), which represents the company's estimated annual gross profit from the Norwegian market.
Norway's Strict State-Run Gambling Monopoly
Understanding this conflict requires looking at Norway's unique regulatory landscape. The country maintains a strict monopoly on gambling, with only two entities legally permitted to operate:
- Norsk Tipping: A state-owned company with exclusive rights to offer lotteries, keno, and sports betting.
- Norsk Rikstoto: Another state-owned firm that exclusively manages horse racing and select other sports betting services.
Any other operator, including internationally recognized brands like Unibet, is considered illegal within the country's borders.
A Long-Standing Legal Battle
This is not a new issue. Nearly three years ago, the Norwegian regulator first issued an injunction against Trannel International, the Kindred subsidiary that operates Unibet in the region. Kindred's subsequent appeals to the Ministry of Culture and the Lottery Board were both denied.
Despite the ongoing legal challenges, the regulator is moving forward with enforcement, signaling a low tolerance for unlicensed activity.
Trannel International has escalated the matter by requesting a judicial review from the Oslo District Court, with a hearing scheduled for May 2022. However, the regulator has decided not to wait for the court's decision, citing clear evidence that Unibet has been actively targeting Norwegian players through localized services, including Norwegian language support and transactions in Norwegian kroner.
Regulatory Troubles Extend to Denmark
Kindred's regulatory headaches are not confined to Norway. Recently, Unibet received a warning from Spillemyndheden, the Danish gambling authority, for violations of anti-money laundering (AML) regulations. The agency found that a player was allowed to deposit DKK 1.4 million (around $215,000) over two years without Unibet adequately investigating the source of the funds. These compounding issues in regulated European markets present a significant challenge for the operator's future.
