Norway reports channelisation success, increased younger risk

The Norwegian Gambling Authority has issued a report indicating a decline in the foreign gambling market while emphasizing the need for state-run monopoly Norsk Tipping to enhance protections for younger players.

In 2024, the number of individuals utilizing Norsk Tipping’s offerings exceeded two million, marking an 11% increase from 1.8 million in the previous year. This surge underscores growing engagement with state-controlled offerings, as highlighted in the Authority’s comprehensive 2024 market report.

Published on April 24, the report reveals an uptick in domestic gambling revenues, contrasted by a contraction in the foreign market. This trend is attributed to the regulator’s effective measures in curbing illegal gambling sites, compelling players to gravitate towards the legal monopoly’s products.

Turnover at Norsk Tipping, along with the pari-mutuel racing monopoly Norsk Rikstoto, saw a substantial increase, rising from NOK2.6 billion ($249 million/£187 million) in 2023 to NOK3.1 billion in 2024—a remarkable 19% year-on-year growth in competitive games against foreign operators.

Moreover, Norsk Rikstoto reported an active player base growth of 5%, reaching 175,000 customers in 2024. In stark contrast, the illegal gambling market’s turnover plummeted by 18%, dropping to NOK1.3 billion from NOK1.6 billion in the prior year.

Director of the Norwegian Gambling Authority, Tore Bell, stated, “Increasing numbers of players are engaging with Norwegian games. We observe a significant rise in participation at exclusive operators and a corresponding increase in turnover for games competing with foreign options.”

Reduction of Illegal Gambling Sites in Norway

The Norwegian Gambling Authority reported a noteworthy contraction in the unlicensed market, which held a 22% and 28% market share of the riskiest online casino games in 2024—a decline from a peak of 35% the year prior.

This decrease is largely due to proactive measures implemented by the regulator, including blocking websites and payment services, enforcing bans on gambling advertisements, and collaborating with platforms like Google and Facebook to manage black market advertising and access.

In April alone, the Authority blocked 57 unlicensed websites and had previously warned about 50 companies of impending measures, leading to the exit of 40 operators from the market.

The Authority anticipates that Norsk Tipping and Norsk Rikstoto will reduce their marketing efforts as well, reflecting an ongoing commitment to responsible gambling practices.

Addressing the Risks for Younger Gambers in Norway

Notably, the report identified an unintended consequence of the Authority’s successful channelization strategies: a rise in the number of younger players engaging with high-risk casino games on supported platforms.

The Authority has urged Norsk Tipping and Norsk Rikstoto to intensify their protective measures for this demographic. Recommendations include implementing less risky gameplay options and ensuring that pause and self-exclusion features are prominently displayed and easily accessible. Additionally, the Authority advises that promotional communications should not be directed at gamblers under 25 years of age.

“The positive outcome of successful channelization is the increased player pool for exclusive operators. Alarmingly, many young players exhibit behaviors akin to seasoned gamblers, often engaging with high-risk games,” Bell remarked.

In response to these issues, Norsk Tipping recently imposed stricter loss limits for patrons aged 20 to 24. Under these regulations, players aged 20 to 21 face a monthly loss cap of NOK3,000 (£216/€256/$264), while those aged 22 to 24 have a higher limit of NOK5,000.

According to a survey conducted by Norsk Tipping, one in five men aged 18 to 25 is categorized as a risky or problem gambler, reflecting the need for continued vigilance in player protection strategies.

Furthermore, the regulatory authorities noted a growing normalization of casino gambling among younger males, partly driven by exposure to online streamers who glamorize these activities, as well as to video game-related gambling elements.