EGBA urges Norway to scrap monopoly, with market at a “crossroads”
Maarten Haijer insists that by opening up the Norwegian market, players would be better protected and tax revenues would rise
Norway’s current monopoly model has left the nation “lagging behind” its counterparts, according to Maarten Haijer, secretary general of the European Gaming and Betting Association (EGBA).
The nation’s regulatory framework means state-owned Norsk Tipping is the only operator permitted to offer lottery, sports betting and online casino games, alongside horseracing betting operator Norsk Riksoto.
It is a system that has left Norway’s market at a “crossroads”, according to Haijer.
As part of his latest blog post for the European trade body, Haijer said that since Norway’s Nordic neighbours Sweden and Denmark adopted a multi-licence model, it has improved those markets, with Finland set to ditch its monopoly model next year.
He explained: “While the state monopoly system was originally intended to protect consumers, Norway’s lagging behind its European and Nordic counterparts whose alternative regulatory approaches are delivering superior results in both consumer protection and economic benefits.
“As the online world reshapes how we all consume entertainment, Norway’s legacy online gambling framework faces significant challenges. The monopoly model, operated by the state-owned Norsk Tipping, is being outperformed by regulatory approaches elsewhere.”
Haijer went on to cite research from data consultancy firm H2 Gambling Capital, which revealed that 50% of Norway’s online betting activity is conducted via international websites, leaving the nation with one of the worst channelisation rates in Europe.
Those figures raise concerns around safer gambling, according to Haijer, who used Norsk Tipping’s recent NOK36m (£2.6m) fine for consumer protection failures as an example that a state-backed monopoly model does not guarantee stronger protection for consumers.
He also identified the “main challenge” presented by the monopoly model, bemoaning the fact it restricts the number of options available to gamblers.
“In the online world, Norwegian players are voting with their clicks, migrating to international websites that offer more competitive betting odds, better experiences and diverse betting options,” Haijer added.
“But when they do so, they’re losing the legal protections and safety measures guaranteed under Norwegian law.”
The EGBA secretary general noted that while Denmark’s regulatory shift did not encourage more gambling, it did reduce the amount of wagering that took place via international websites as players had more local operators to choose from, which in turn sparked an increase in tax revenue and player protection.
Haijer argued: “Multi-licensing is the better alternative to the current monopoly system, offering a pragmatic solution by acknowledging that many Norwegians seek alternatives to Norsk Tipping and already gamble on international sites.
“It’s not about expanding gambling, but rather establishing proper oversight for the gambling that Norwegians are already engaging in.”
He noted that a change in system does not have to come at the detriment of Norsk Tipping, suggesting the operator maintains its land-based monopoly while the online market is opened up.
“As Finland – the last comprehensive gambling monopoly in the EU – is already in the process of moving towards multi-licensing, Norway risks becoming the only country in Europe clinging on to an outdated system without any clear public policy justification,” Haijer continued.
“Norway’s path forward should be clear to all concerned. Multi-licensing does not abandon the principles of consumer protection but adapts them to the realities of the digital age we live in.”
Norway’s model has been the subject of intense debate in recent weeks, with Conservative MP Tage Pettersen insisting that it “does not work”, before claiming the nation’s Labour government has underwhelmed when dealing with gambling-related harm.
Pettersen’s comments came after Labour politician Åse Kristin Ask Bakke argued that the current model is working and dispelled the theory that adding more operators to the mix would improve the state of play.