Gambling market in Norway shifts toward local operators
Norwegian Regulator Lottstift Releases Comprehensive Report on Gambling Market Trends
The recent report published by Lottstift, Norway’s regulatory authority for gambling, reveals significant shifts in the country’s gambling landscape. Notably, there is a marked increase in players choosing domestic operators, contrasting with a decline in traffic to offshore brands, underscoring a vital transformation within the industry.
Key Findings from the Report:
- Player engagement with state-owned operator Norsk Tipping saw a remarkable rise, growing from 1.8 million in 2023 to 2 million in 2024.
- The combined turnover for Norsk Tipping and Norsk Rikstoto surged from $192 million to an impressive $288 million, illustrating robust market growth.
- Only 3.8% of the Norwegian population, approximately 169,000 individuals, are currently gambling with offshore operators, indicating a significant decline in market participation by foreign brands.
- Market share for offshore brands has diminished, decreasing from 29-35% to a narrower range of 22-28%.
- Turnover for offshore operators has also seen a downturn, dropping from $153.6 million to estimates between $105.6 million and $144 million.
While this positive trend for domestic operators is noteworthy, the report also highlights a growing concern regarding youth involvement in online gambling. A notable increase in player participation among young adults aged 18-25 raises questions about the implications for responsible gambling and regulatory oversight.
Effective Regulatory Measures:
Lottstift identifies several impactful regulatory actions that have contributed to this market shift. Among the most significant strategies are:
- Payment Blocking: Restricting transactions with unlicensed operators mitigates the financial accessibility of offshore gambling.
- Advertising Restrictions: Bans on advertising through international TV channels help limit the visibility of offshore brands.
- Strategic Partnerships: Collaborations with tech giants such as Facebook, YouTube, and Google ensure that promotional efforts are aligned with local regulations.
Despite the remarkable growth of licensed operators, pressure is mounting on Norwegian authorities to reconsider the current monopoly structure. There is a growing call for a more liberalized market that could potentially enhance competition, consumer choice, and responsible gambling practices.
As the gambling industry continues to evolve, stakeholders must remain vigilant in monitoring trends, regulatory developments, and player behaviors to adapt to the changing landscape effectively. The findings from Lottstift serve as essential insights for industry professionals, regulators, and policy-makers aiming to prioritize consumer protection while fostering a sustainable gambling environment.
