Norway stands on the brink of a significant policy shift as discussions intensify around dismantling its longstanding gambling monopoly. The conservative party, led by figures such as Storting politician Tage Pettersen, is advocating for a transition to a licensing system, mirroring successful frameworks in Denmark, Sweden, and Finland. This change aims to modernize Norway’s gambling landscape, enhance player safeguards, and boost funding for social programs through increased gaming revenues.
Rethinking Norway’s gambling monopoly:
Currently, Norway is the sole country in Europe maintaining a complete gambling monopoly, with all sanctioned betting activities run by state-owned Norsk Tipping. However, a growing political and public consensus suggests that this model may no longer suffice in protecting players or providing sufficient funding for sports and other social initiatives. Tage Pettersen has been vocal about the need for reform, stating at a conservative party national convention, “We have a dissent within the Conservative Party and I hope to turn this to our advantage.”
The proposed shift towards a licensing system is driven by the potential for improved control over gambling operations and enhanced measures to tackle gambling addiction. Pettersen points out that about half of Norway’s online gamblers currently use unregulated platforms, which operate without the stringent player protection measures required of Norsk Tipping. He argues, “In a licensing scheme, all gaming companies will be equally responsible for reacting and initiating measures when there are signs of problem gambling.”
Supporters of the licensing model, including the Norwegian Industry Association for Online Gaming, believe that this system could substantially increase state revenues and, consequently, the funds available for public initiatives. According to a study by Menon Economics, adopting a licensing model could boost funding for sports and volunteer groups by NOK 2-2.5 billion annually. This model has also been attributed to reducing problem gambling rates in Sweden, where over 110,000 individuals have utilized the Spelpaus system to block access to all licensed gambling platforms.
Pettersen further elaborates, “Around half of those who play online games in Norway play with players other than Norsk Tipping. It is completely legal, unregulated and we cannot make demands on the gaming companies. In a licensing scheme, all gaming companies will be equally responsible for reacting and initiating measures when there are signs of problem gambling. In addition, a licensing scheme will generate more money for sports.”
Opposition and concerns:
Despite these arguments, significant opposition remains from various stakeholders, including the Norwegian Sports Federation and Gambling Addiction Norway. Critics argue that a licensing system could lead to increased gambling addiction and reduce the funds allocated to socially beneficial purposes. The current model, despite its flaws, is seen by some as a more controlled environment that better prevents gambling-related harms.
As Moss-Avis reports, Else-Marthe Sørlie Lybekk, Secretary General of the Norwegian Sports Federation, asserts, “A licensing model will result in more problematic gaming behavior and less money for socially beneficial purposes. We cannot be indifferent to how we are financed.”
Pettersen and his supporters are looking to international examples to bolster their case. They cite the experiences of Nordic neighbors like Sweden and Finland, which are moving away from monopolistic systems in favor of licensing models that purportedly offer better consumer protection and increased charitable contributions. Moreover, they suggest that Norway could develop a uniquely effective model based on these examples, tailored to meet its specific regulatory and societal needs.
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