Norway’s state monopoly battle for gaming customers

0

Posted on: Jan 21, 2022 at 3:55 am.

Last updated on: January 21, 2022 01:54 am.

Norway’s online gambling market is still struggling to gain a foothold as players continue to shun the state monopoly. Players opt for international sites instead.

Norway, Norwegian, Scandinavia
Children wave Norway’s flags at a local parade. The majority of Norwegians gamble through international sites rather than opting for the Norwegian state system. (Image: travelade.com)

It is estimated that 66% of Norwegian online gambling The activities are now conducted on international sites, according to the European Gaming and Betting Assn. (EGBA) Secretary General Maarten Haijer.

That’s because Norway currently uses a state monology to regulate online gambling in the country. The country claims it can manage online gambling more efficiently and protect gamblers from problem gambling than private companies.

However, monopolies typically limit choice. The online market, like many others, is highly consumer-driven and users tend to select options that give them the widest choice at the lowest price. And in most cases these opportunities lie outside of Norway.

As a result, analysts estimate the country is losing 2 billion kr ($230.2 million) in tax revenue each year.

Lose control

Many Norwegian players are not protected under Norwegian law because they play on foreign websites. The state cannot control or protect them.

Since the Norwegian government’s main reason for using a state monopoly to operate their gambling operations is to protect players from gambling problems, this creates a problem. The belief is that with a state controlled gambling operator it is possible to monitor players more closely. In addition, gambling operators will have more protocols to take care of and ensure player safety.

However, according to several studies, including one by Norway, the problem gambling rate in Norway has increased more than fourfold over the past seven years University of Bergen in 2020. This is higher than in Spain or the UK.

Sites like NorgesCasino that offer Norwegian players different casino options usually don’t cover the state selection.

Lessons from nearby markets

The shortcomings of the monopoly model of gambling are well known. Almost every European country, including neighboring Sweden and Denmark, has now replaced its regulations with a more effective multi-licensing model to regulate online gambling.

Under this system, the country’s gambling regulator enforces and monitors these licensing rules. This ensures that the authorities have the right to monitor consumer protection. However, businesses must also follow local licensing rules to comply with all regulations and consumer protections in a multi-license marketplace.

Multi-licensing allows more companies to license themselves in the market, creating competition and choice to gamble on licensed sites.

Share.

About Author

Comments are closed.