Norway, towards a national gambling law
Norway is taking a first step towards unifying the various legislations regulating the betting and gambling sector in the country. After a public consultation, which remains open until the end of September, the Minister of Culture sent the draft national law to the European Commission for approval.
The Scandinavian country is one of the few countries in the European market that does not have a multiple license system. In this new national law, Norway maintains the monopoly of state-owned enterprises despite voices advocating a free market. ©Arvid Malde/Unsplash
On May 30, the Minister of Culture and Equality, Abid Raja, opened a public consultation with the aim of unifying the three laws in the same legal framework which govern the betting and gambling sector in the country: the Law on Gambling (1992), the Law on Lottery (1995) and the Law on Totalizers (1927).
In the ministry's petition to the Norwegian parliament, however, Raja pointed out that the consultation would not study the state monopoly on betting, gambling and lottery . Under this new law, Norsk Tipping and Norsk Rikstoto would continue to be the two operators authorized to offer betting, gambling and lottery services, although they would be under greater government control.
Before the closing date of the consultation, scheduled for September 29, the ministry notified the European Commission of this unification. After the new law is passed, the game would become the competence of the Ministry of Culture , including betting on horse races, which are currently under the supervision of the Ministry of Agriculture and Food.
The consultation also gathered views on allowing the use of loot boxes or reward boxes due to its addictive potential, it is a hot topic in other European countries, including New Zealand. In official statements Abid Raja, his ministry intends with this step prevent problems arising from compulsive gambling , protect the interests of the most vulnerable groups and combat the organized groups that hide behind this industry.
Norway, the last bastion of state control
At the height of the boom in online bookmakers and casinos, Norway, a member state of the European Economic Area (EEA), is one of the few countries that resists the advance of free trade in the European online betting and gambling market. International operators are prohibited from offering their services in the Scandinavian country, and since 2010, Norwegian banks have been obliged to cancel payments made to operators , a similar measure that some companies like Visa are applying in Germany .
However, the reality is quite different. In May of this year, a report by the University of Bergen commissioned by the Norwegian Gaming Authority he pointed out a worrisome 62% increase in gambling addiction in the country . According to the survey, an estimated 122,000 people are at risk. The Norwegian Association of Online Gambling Industry once again asked the authorities to end the current state monopoly that, they consider, to be the cause of the increase in cases of gambling addiction.
In an interview with the Director General of the Norwegian Gaming Authority, Atle Hamar, confirmed that 70-80 percent of the calls received for compulsive gambling problems are from players betting on international operators .
Coinciding with the announcement of these data, the Norwegian parliament approved a law to prohibit advertising and access to illegal gambling and betting sites. With this measure, the executive puts an end to a legal loophole that had been allowing international portals advertise your products in Norway from the outside since 2017.
The European Betting and Gaming Association (EGBA) has been advocating for the the end of this state monopoly to implement a multi-regulatory system that protects players in Norway and increases the channeling of the regulated sector.
"Given that monopolies limit consumer choices, it is not surprising that about half of the players in Norway opt for international websites that are more attractive, because these offer more competitive betting possibilities and more attractive games than the state monopoly. This situation undermines the overall effectiveness of Norway's online gambling regulations, deprives the state of valuable tax revenues and leads Norwegian players to play on foreign websites where they are not protected by Norwegian laws.” – EGBA , in press release
