According to a document seen by Reuters, the ethics watchdog of Norway’s $1.8 trillion Government Pension Fund will look into potential violations in gaming and cryptocurrency industries.
The paper was quoted as saying: “The Council on Ethics in 2025 will take a closer look at companies involved in cryptocurrencies and gambling/casino, where there is a significant risk of money laundering.”
The Council of Ethics will assess whether the enterprises are in compliance with the ethics norms established by Norway’s Parliament.
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If the council rules that this is not the case, it can suggest to the Central Bank, which manages the fund, that it renounce its shareholdings or place them on a public watch list.
The watchdog can also request that the fund’s management communicate directly with the company in question.
Companies that have been disinvested are not notified until their shareholdings have been sold.
While the bank usually follows the council’s advise, it doesn’t always do so.
The Norwegian Pension Fund owns shares in several well-known online gaming companies, including Evolution, MGM Resorts, and Flutter Entertainment.
The 2.13% and 2.30% Flutter and Evolution interests are valued $691.8 million and $506.9 million, respectively.
The company also owns shares in French lottery behemoth FDJ, US regional casino operator Boyd Gaming, ESPN Bet-operator Penn Entertainment, and REIT Gaming and Leisure Properties Inc, among others.
Because their industry is strictly regulated, most publicly traded gaming companies in 2024 will have strong anti-money laundering and counter-terrorist financing controls in place.
The investigation comes as some institutional investors reconsider their relationship with gambling stocks due to a renewed emphasis on Environmental, Social, and Governance (ESG) concerns.
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