The Norwegian Gambling Authority (NGA) has ordered local banks to stop transactions between Norwegian gamblers and unauthorized online operators, following an audit of suspected illegal activity.

The European Gaming and Betting Association (EGBA) and the Malta Remote Gaming Council (MRGC) have reacted negatively, insisting that Norway’s attempt to block the use of third-party payment providers (TTPs) for gambling transactions is also a de facto ban on all payment services provided by TPPs in the country, which is a breach of EEA rules on market access.

Norway maintains a tight grip on its gambling market, reserving most activity outside of small-time lotteries for the state-owned Norsk Tipping and Norsk Rikstoto, the only two companies outside of small-time lotteries allowed to offer gambling services to locals.

A total of seven companies have been affected by the order, including international payment processors Worldpay, Earth Port, Trustly, Inpay and Entercash. The NGA claims that NOK2.2b ($256m) of illegal gambling revenue flowed through these organizations in the past year.

Norway was one of the first countries to introduce gambling-related payment blocking legislation in 2010, which established penalties for financial institutions that processed transactions involving offshore online operators. However, Norwegian players routinely bypass this law by using intermediary “digital wallet” services like Moneybookers.

Following a state initiated in-depth study of Norway’s gaming market last year, with the aim of determining whether the time was right to open up the market to international operators, Norway announced that the monopoly will remain in order to keep a tight lid on problem gambling activity, while ensuring revenues are funneled to social causes.