Norwegian trade association rails against “fragmented” monopoly market

Norway’s channelisation rate for monopoly holders Norsk Tipping and Norsk Rikstoto could be below 50%, the Norwegian Industry Association for Online Gaming (NBO) has claimed. Responding to the Norwegian government’s consultation on unifying the country’s three gambling laws into one new act, the NBO has advocated for a “completely different” regulatory model, including the licensing of international online operators. The NBO suggests the current market is fragmented both inside and outside of the exclusive rights model. It suggests the monopoly system is a monopoly in name only, due to the increased collaboration between monopoly operators and international operators in areas including product development and game design. “The consequence is a weakened channelling where the exclusive rights model’s liability measures affect an ever-lower proportion of players, while the number of problem players increases,” the NBO claimed. As evidence, the NBO highlighted Norway’s problem gambling numbers, which have more than doubled from 22,000 in 2013 to 55,000 in 2019. The trade body claimed the low channelisation rate “weakened the legitimacy” of the country’s current regulatory model. “The basic purpose of the exclusive rights model – and the whole reason for the proposed change in the law – is to ensure that gambling in Norway takes place within a strict liability regime. “A degree of channelling of less than 50% means that the liability measures now affect well under half of players,” the NBO said. To replace the existing regime, the NBO has called for the monopoly system to be scrapped and a licensing model introduced, claiming it could restore channelisation to more than 95%. The licensing model would be supported by a 15% taxation rate, which the NBO suggests could generate additional revenue of NOK1.22bn (£101m) for distribution to Norwegian social causes. The NBO has dismissed accusations that a higher taxation rate would discourage international operators from entering the Norwegian market. As justification, the trade body pointed to the re-regulation of neighbouring Denmark and Sweden, which have created licensed markets with high taxation rates but have strengthened efforts to prevent problem gambling at the same time. “It’s time to learn from Sweden and Denmark and re-regulate the Norwegian market, where we really acknowledge the problems we have in Norway related to problem gambling. Let us establish a tool like [Sweden’s self-exclusion register] Spelpaus,” NBO secretary general Carl Fredrik Stenstrøm told EGR. The Norwegian government’s consultation process ended on 29 September, with a further round expected to take place once all responses have been reviewed.