Action brought on  13 March 2006  by the EFTA Surveillance Authority against the Kingdom of Norway (Case E-1/06)
Date: 2006-03-13
Institutions: EFTA Court
Subjects: EFTA Court, EFTA countries, European Economic Area, Norway, game of chance, gaming establishment, right of establishment, supervisory body

C 117/14

EN

Official Journal of the European Union

18.5.2006

EUROPEAN ECONOMIC AREA

EFTA COURT

Action brought on 13 March 2006 by the EFTA Surveillance Authority against the Kingdom of
Norway

(Case E-1/06)

(2006/C 117/05)

An action against the Kingdom of Norway was brought before the EFTA Court on 13 March 2006 by the
EFTA Surveillance Authority, represented by Niels Fenger and Per Andreas Bjørgan, acting as Agents of the
EFTA Surveillance Authority, 35, Rue Belliard, B-1040 Brussels.

The applicant claims that the Court should:

1. Declare that the Kingdom of Norway, by amending the Norwegian gaming and lottery legisla-
tion in ‘Lov av 29. august 2003 om endringer i pengespill- og lotterilovgivningen’, which intro-
duces a monopoly with regard to the operation of gaming machines, has infringed Articles 31
and 36 of the EEA Agreement.

and

2. Order the Kingdom of Norway to bear the costs of the proceedings.

Legal and factual background and pleas in law adduced in support:

— The case concerns a monopoly on the operation of gaming machines in Norway.

— Norwegian Penal Code Sections 298 and 299 prohibit gambling unless permitted by specific legisla-

tion.

— The Act of 28 August 1992 No 103 (the Gaming Act) coordinated several previously permitted
gambling activities (Lotto, horserace and football betting) under the sole operation of Norsk Tipping
AS, a company solely owned by the Norwegian government.

— The Act of 24 February 1995 No 11 (the Lottery Act) defined gaming machines as a lottery which may
only be operated in order to provide revenue for charitable causes. The Act specified who may operate
gaming machines, including private operators.

— In order to combat the growing problem of gambling addiction, the Storting (the Norwegian Parlia-
ment), through the Act of 29 August 2003 No 90 transferred the administration of lottery operations
using gaming machines from the Lottery Act (which allows for private operators) to the Gaming Act
(which grants Norsk Tipping AS exclusive rights of operation).

— The amendments to the Norwegian legislation entail that existing operators be removed from the
market and that gaming machine services can, from that point on, only be carried out within the
framework of a state monopoly (Norsk Tipping AS).

— Article 31 EEA prohibits all restrictions on the freedom of establishment of nationals of an EC Member
State or an EFTA State in the territory of any other of these States. This also applies to the setting up of
agencies, branches or subsidiaries by nationals of any EC Member State or EFTA State established in
the territory of any of these States.

18.5.2006

EN

Official Journal of the European Union

C 117/15

— Article 36 EEA prohibits all restrictions on the provision of services within the EEA in respect of
nationals of EC Member States and EFTA States who are established in an EC Member State or an EFTA
State other than that of the person for whom the services are intended.