As discussions over whether to implement a licensing system for betting companies heat up, Norway is poised to become the final nation in Europe to have a gambling monopoly.
Critics worry that regulation might result in a loss of public revenue and a rise in compulsive gambling, while supporters contend that it could raise financing for volunteering and sports.
The Licensing Movement Gains Strength
Taking inspiration from Denmark, Sweden, and Finland, Tage Pettersen of the Conservative Party is spearheading the effort to replace Norway’s gaming monopoly with a controlled licensing system. He contends that such a model would provide stronger regulation of gambling firms, more stringent methods to avoid gambling addiction, and a substantial cash gain for nonprofits and sports teams.
According to a Menon Economics analysis, switching to a license system may bring in an extra NOK 2–2.5 billion a year for volunteering and sports. Pettersen also points out that Finland, which plans to phase down its monopoly by 2027, anticipates a new licensing regime that will boost gaming funds by NOK 3 billion annually.
Approximately 50% of Norwegian internet gamblers use sites other than Norsk Tipping. Since these businesses are totally unregulated, we are unable to place any restrictions on them. According to Pettersen, a licensing system would guarantee that all operators bear equal responsibility for dealing with problem gambling and that more money is allocated to sports.
The Norwegian Industry Association for Online Gaming (NBO) has endorsed his plan. 90% of gaming revenue in nations with licensing regimes shifts into the regulated market, enabling authorities to better monitor and control gambling behavior, according to NBO Secretary General Carl Fredrik Stenstrøm.
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Opposition Fears Revenue Loss & Gambling Risks
Strong opposition persists despite growing support for licensing. Opening the market to private operators could exacerbate gambling addiction and cut down on public support for social programs, according to the Norwegian Sports Federation, Gambling Addiction Norway, and a number of other groups.
Under the heading “Together for a Responsible Gaming Policy,” 74 Norsk Tipping-funded organizations released a single statement on March 5. The project highlights worries that breaking away from the monopoly would lead to a rise in problem gambling and erode social funding systems.
Else-Marthe Sørlie Lybekk, the Norwegian Sports Federation’s secretary general, said: “A license model will lead to less money for socially useful objectives and more harmful gaming behavior. We favor accountability and profits for the benefit of the public, which is why we maintain the status quo.
Vulnerable players must be protected, according to other critics like Trine Stensen, secretary general of the Blue Cross. She brought up the fact that many people undergoing treatment for gambling addiction have lost money to overseas operators that do not follow Norway’s rules regarding responsible gaming.
Gambling Addiction Norway, meanwhile, has expressed doubt about the effectiveness of licensing in other nations. Magnus Pedersen, a political advisor, contends that while Denmark is dealing with a rise in youth gambling addiction and operators’ aggressive marketing tactics, Sweden’s licensing approach has not eradicated the black market.
We find it difficult to understand how Norway’s predicament could be improved by a licensing arrangement. Pedersen came to the conclusion that “it is not the right solution to give more power to private companies that may not operate with the necessary restrictions.”
The Discussion Goes On
Norway is debating whether to follow Finland’s example and phase away its monopoly, and the topic of gambling legislation is still quite divisive. Opponents worry that licensing might increase dangers and cut vital funding for social causes, while supporters view it as a chance to boost state revenue and better handle compulsive gambling.
The future of Norway’s gaming model is still up in the air because both sides have powerful business and governmental stakeholders. Both customers and the country’s overall gaming policy will probably be impacted in the long run by the verdict.
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