What is the future for Norway’s betting monopoly?

What is the future for Norway’s betting monopoly?

What is the future for Norway’s betting monopoly?

1-10 What is the future for Norway’s betting monopoly?

Norway currently enforces a strict ban on all online betting run by anyone other than monopoly operator Norsk Tipping. Yet, despite its latest efforts to keep unlicensed operators out, there are still other options available for Norwegians as it isn’t stopping the people from playing at foreign licensed operators should they choose to.

The policy of making Norsk Tipping the sole licensed operator while keeping foreign betting companies off the Norwegian market has been a favoured approach by shifting governments in the country over several decades. 

For the most part, this has been uncontested by the general population. The services offered by Norsk Tipping have typically been satisfactory for most players and with Norsk Tipping’s obligation to return its profit to society, this has been accepted by many as a fair compromise. 

The motivation behind this policy is often said to be a desire to protect players by controlling which types of gambling services are made available. Allocating money from the gambling industry to organisations working towards the greater good of society is also seen as important. 

However, with international betting companies entering the Norwegian market by offering their services online, this strategy is proving increasingly hard to keep up. Several measures have been taken in the last couple of years to ensure that unlicensed operators stay out of the Norwegian market, for example by blocking transactions to gambling sites. Despite being met with criticism, Lottstift shows no signs of giving in to the external pressure.

 

The shift to online complicates matters

Competition among online betting companies is fierce, and considering how difficult it is for one country to legislate online activity without resorting to means more often seen in countries of a far less democratic nature, the challenges faced by Norsk Tipping are getting bigger. 

In addition, as regulation fails to keep international online actors out, many argue that today’s situation in Norway is, in reality, a free-for-all system where companies required to follow strict regulations in most neighbouring countries are given a free pass to target Norwegian players.

A quick look at the Norwegian comparison site Oddsbonuser.nu tells us that a lot of operators are interested in the country and some of these would welcome regulation. 

For example, Kindred Group and Betsson Group – both members of Norsk bransjeforening for onlinespill (NBO). As can be read on their website, “NBO will promote the introduction of a responsible and sustainable licensing regulation of the Norwegian online gambling market”.

Even though regulation is very unlikely at this point, it’s hard not to fall into the pit of ‘what if’. Close at hand is the situation in Sweden, which regulated the gambling market in 2019. 

Sweden had previously followed a similar path, before abandoning its monopoly. Betting companies can now – by obtaining a licence – operate and advertise on the Swedish market, given that they follow regulations set by Swedish authorities, including paying Swedish taxes.

This naturally means tougher competition for state-owned former monopolist Svenska Spel, but also that politicians now can regulate and limit how betting companies can operate, for example when it comes to promotions and bonuses. But even so, recent proposals of further tightening the regulation in Sweden have caused waves amongst the licensed operators in the country. 

The operators and Spelinspektionen, the Swedish Gambling Authority, are worried that this might cause players to move away from licensed operators and that the black market will grow even bigger – making it worse than pre-regulation in the country. With this in mind, Lottstift is likely even more certain that their strategy is better left unchanged.

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Source: Eastern European Gaming