Norway Regulator Warns Kindred Subsidiary of Daily Coercive Fine

The gambling regulator in Norway warned Kindred’s subsidiary of coercive fines daily unless illegal gaming offering isn’t discontinued.

Trannel May Face Daily Coercive Fines in Norway, Warns Regulator

The Norwegian Lotteries Authority, Lottstift, issued a warning against Kindred’s subsidiary Trannel International Limited on Tuesday. The regulator warned the subsidiary that it may face “coercive fines” of NOK 1,198 million ($137,000) per day unless it discontinues its illegal gaming offering in the country. The Authority explained that the daily fines will stop only when the total amount has reached Trannel’s annual gross profit, which was estimated at around NOK 437 million ($49 million).

Additionally, the regulator explained that the fines will start two weeks after the decision has been made and will continue until the illegal offering stops or the maximum announced amount is reached. Passing the ball to Trannel, the Authority said that it will consider waiving the fines if the company presents “a written statement with a specific proposal and plan for how they will comply with the decision.”

The Legal Battle between the Duo Continues

Lottstift’s latest announcement isn’t unexpected. In fact, the legal battle between Trannel and the Authority dates back to April 2019. Back then, the Authority ordered the company to stop offering gambling in Norway, without holding a Norwegian permit. Trannel appealed the Authority’s decision to the Ministry of Culture and the Lottery Board. However, both appeals were denied. March 12, 2020, the date when the case was decided, was the deadline for Trammel to comply with the Authority’s decision.

“The Norwegian Lotteries Authority has on several occasions asked Trannel to provide information on how they will comply with the decision, but the operator hasn’t followed up this issue,”

reads a statement released by the Norwegian Lotteries Authority

But this wasn’t the end of the legal battle between the duo. In the process of waiting for the appellate bodies, Trannel also asked the Oslo District Court to determine if the regulator’s decision was valid. Although the Authority and the two appellate bodies have rejected the company’s appeal, District Court in Oslo is expected to hear the case this May.

“We take it seriously that the illegal gambling offer has not yet ended.”

Atle Hamar, director of the Norwegian Lotteries Authority

Atle Hamar, the Authority’s director, said that Trannel has been operating illegally in Norway. Moreover, he stressed that the company has earned NOK 437 million a year from that activity, which is why such a measure was chosen to protect the Norwegian people from illegal gambling. Hamar outlined that the warning comes at a time when the Authority is prepared to introduce the coercive fine unless Trannel doesn’t stop offering its services illegally in the country.