Norway: EGBA voices concerns over monopoly
Professionals and major players have been slamming the Norwegian gambling monopoly for quite some time - a recent analysis by the EGBA (European Gaming and Betting Association) shows how this system could fall short: despite significant regulatory actions, a large-scale transfer of clients to the underground market has been spotted. Norway seems to have relinquished control over its gambling market. Let's see what's happening in further detail.
66% Play Elsewhere
Norway's fight against online gambling for ages include financial blocks and advertising bans. The government wishes to safeguard the state-run companies Norsk Tipping and Norsk Rikstoto. Meanwhile, the Norwegian Online Gambling Association (NBO) has pestered for the introduction of a modern licensing system in conformity with European standards since early 2020. Now, the NBO has found a significant supporter in Europe's biggest gambling association.
The EGBA, based in Brussels, took a closer look at the consequences of the Norwegian gambling monopoly through a study that reveals some telling facts: Norway is steadily losing control over its gambling market. More than 66% of clients allegedly shun the state monopoly and pick overseas online gambling providers instead. The main reason for this predicament is the limited selection of games the two government-owned companies, Norsk Tipping and Norsk Rikstoto, offer.
The EGBA points out that it's misleading to think that a state monopoly is necessary to oversee the burgeoning online gambling industry. It's as inaccurate to assume that the state gambling monopoly can be better defended using bans. Oslo based its arguments on these two pointers, but recent stats seemed to invalidate them. With most digital sectors being heavily user-centric, Internet-savvy Norwegians keep their eye out for features, prices, and new things. Monopolies stand in the way of such a market, contrary to the modern gambling landscape.
Missing out on €2 billion in taxes
The study also mentions a model that's outdated and can no longer satisfy the needs of contemporary online gambling clients. Norwegian gamblers are seeking alternatives and a broader range of games. Both are conveniently available on the web. Plus, international providers offer better deals. The mass transfer of clients is, thus, hardly unexpected.
Since more than 66% of customers now play on offshore gambling sites, it's apparent that Norway has lost control of more than half its gambling market. This situation would cost the government nearly €2 billion in lost taxes. Many Norwegian gamblers, who opt for foreign providers, lack sufficient protection in their own nation.
A major issue is that Norway insists maintaining the monopoly would ensure better player protection. In reality, the government can't protect players who sign up with international providers or handle their gaming activities in any way.
Restrictions on Sliver Lining
Furthermore, Norway has imposed extra limitations even on its state provider, Norsk Tipping. Stricter marketing rules have been in place since 2021, with gambling marketing now limited to essentials and a decrease in lottery and tournament advertisements. As part of their preventive measures against gambling problems, the government also asks for responsible advertising, including a gambling helpline contact on all gambling advertisements since January. According to the Norwegian authorities, these measures are part of their efforts to mitigate potential gambling-related issues.
Gambling Addiction Vice Versa
Despite promoting player protection being a significant pillar of Norwegian gambling regulation, gambling addition has nearly tripled in the past seven years, claims the EGBA. The current number is threefold that of Spain and the UK. In contrast, neither Spain nor the UK has a gambling monopoly but opted for a sophisticated licensing system that welcomes overseas suppliers.
It cannot be confirmed that Norwegians have a better shield against gambling issues thanks to the monopoly. On the contrary, the situation is deteriorating - that's why it's urgent to replace the monopoly with a modern licensing system. In fact, the EGBA also reproached the Finnish gambling monopoly for similar reasons in December 2020 and suggested changes.
License Boundaries
According to the EGBA, a modern licensing system would unleash competition, offer a more comprehensive selection of games, and give clients the opportunity to play safely under national supervision. The EGBA says setting up these licenses depends on consumer protection regulations and would be actively regulated by the authorities.
Denmark and Sweden, two Scandinavian neighbors, already achieved success by opening their markets to online providers. Consequently, illegal activities have witnessed a major decrease. The homegrown and foreign operators can exist side-by-side without any hassles. The EGBA urges Norway to reconsider its argument that it needs to protect its citizens from foreign providers.
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Source: www.onlinecasinosdeutschland.com
