EGBA’S HAIJER SAYS NORWAY LOSING CONTROL OF GAMBLING MARKET

Norwegian authorities are losing control of their own gambling market, with an estimated 66% of online gambling activity now taking place on international websites. 

At least that’s according to Maarten Haijer, Secretary General of the European Gaming and Betting Association (EGBA). In a statement published on the EGBA website, Haijer slammed Norway’s monopoly system, in which only state-owned Norsk Tipping and Norsk Rikstoto are legally permitted to operate, as a failure.

Elaborating, Haijer said that Norwegian bettors are choosing international operators because they offer “better choices and prices” compared to the state-run offering. Haijer pointed out that, in addition to leaving players vulnerable and unprotected, the current system means the Norwegian state is also missing out on around 2B NOK (€200M euro) per year in tax revenue. 

Taking aim at the usual justification for the monopoly system, Haijer said: “Norway justifies its monopoly under the premise that the state is better placed, than private companies, to control online gambling and protect players from problem gambling. But this argument, like Loki’s Wager, is based on a fallacy: it’s a country’s regulations and consumer protections which control online gambling and protect players, not whether there is a monopoly or not.”

Urging a change, Haijer pointed to the success of the multi-licensee regulated markets of fellow Nordic countries Denmark and Sweden, and suggested that Norway could reduce the percentage of bettors using international sites from 66% to 5% within a year of adopting such a system. 

Haijer concluded his statement by saying: “The time has come for Norway to have a fundamental rethink about how it regulates online gambling. It’s clear that Norwegians increasingly choose not to play with the monopoly, and it’s better to meet, rather than ignore, their demand for alternatives. 

“Experience shows us that online gambling monopolies inevitably fail, and Norway should look to Denmark and Sweden where multi-licensing – while not perfect – proved to be a much more optimum model for controlling online gambling. Only by doing the same can Norway correct the fallacy at the heart of its monopoly and failing online gambling regulation.”

AYO.NEWS says:

While many will dismiss Haijer’s words out of hand, given that he represents operators that stand to benefit from reforms, his logic is hard to argue with. How the Norwegian government really expects its consumers, who are among the richest and most tech savvy in the world, to be happy with just two relatively stale state-run offerings is anyone’s guess.