The legality of sports betting varies all around the globe. While some countries have it strictly banned, others have made the most of the economic opportunity at their disposal and made it legal. In this article, we will discuss how Norwegian sports betting legislation compares to that of the United States of America and how it impacts punters that live in those countries.
Is sports betting legal?
Norway
Yes, sports betting is legal in Norway, as well as horse race betting, lotteries, Keno, and some other games. What is more, it is one of the most popular gambling options in the country. Seeing as how Norway’s economy is among the strongest in the world, its citizens have a lot of disposable income that they don’t mind spending on sports. With that in mind, it’s important to note that gambling is highly regulated in Norway.
Gambling has a long history and when it comes to Norwegian legislation, the first piece that pertained to it dates back to 1902. Back then, the only establishments able to offer games of chance were those with special licenses. In 1927, the Totalisator Act was introduced and there weren’t many changes to the rules and regulations in terms of betting for most of the 20th century. That is until the Gaming Act was introduced in 1992. Not long after, the Lottery Act followed in 1995. By the start of the 21st century, most of this legislation became outdated due to all the technological advancements, so the country decided to ban slot machines and made it illegal to bet with foreign bookmakers.
However, since early 2020, Norway has been working on a gambling legislative reform. The three guides – the Totalisator Act, the Gaming Act, and the Lottery Act – are all still present but it’s expected that they will be consolidated under one act.
USA
In the United States, sports betting was prohibited due to the Professional and Amateur Sports Protection Act of 1992 (PASPA) making it illegal for states to authorize legal sports betting. Only Delaware, Montana, Nevada, and Oregon were exempt from the Act as they had legalized gambling prior to it.
Then, in May 2018, the Supreme Court overruled the Act and allowed states to legalize sports betting. Since then, twenty states and the District of Columbia have either fully legalized sports betting or are in the process of making it happen. In some states, it’s only available online, while in others, mobile betting is not allowed. It is expected that, in time, more and more states will choose to pass legislature for legalizing sports betting.
What are the most used platforms for sports betting?
Norway
Norwegian legislation has provided only two state-owned companies with licenses for gambling. These are Norsk Tipping and Norsk Rikstoto. In Norway, it is only legal to bet through these operators. This means that, besides games that are offered by Norsk Tipping, online gambling is illegal. On the other hand, Norwegians are still able to gamble online on foreign sites. Despite the government’s efforts to stop this practice, there are no restrictions that prevent citizens from gambling on websites located in other countries. To do such a thing, however, a player should use an eWallet because it’s illegal for Norwegian banks to transfer money into an online casino account.
The USA
As opposed to Norway, the USA doesn’t have state-operated gambling providers. Instead, there are thousands of sports betting sites for players to choose from. Players usually familiarize themselves with several operators and look into which ones offer the best odds, which ones come with promotional deals and bonuses, and which have loyalty programs.
Still, these operators need to be approved by the state. Once they get the approval, players can rest assured that they are dealing with a safe, legal, and regulated bookmaker.
Are betting winnings taxed?
Norway
When it comes to taxes, if a player bets through one of the state-owned companies, they don’t have to pay taxes at all. On the other hand, winnings on foreign websites are taxed if they exceed 10,000 kroner. The rate here is 23%. According to CasinoTopplisten.com you can find more information about online casinos on their website.
The USA
Taxes do apply to winnings in the USA but just like the laws, it usually varies from state to state. For example, the overall annual income is taxed at 24% and it’s possible that the taxes for the sports betting winnings will be the same but they could also be higher or lower, depending on the overall winnings. What is more, in some states like New Jersey, if a player ends up losing money or only manages to break even, they are not required to pay any taxes on sports betting profits.
As can be seen, Norway and the United States differ in many regards when it comes to sports betting. Whether Norway will manage to consolidate all acts under one and whether more states will legalize sports betting remains to be seen.
