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The Norwegian Lotteries Authority is Tightening the Requirements for Norsk Tipping

June 5, 2022 | Financial

FØRDE, Norway (June 2, 2022) – “It is especially the casino and odds players we want better protection for, says department director in the Norwegian Lotteries Authority,” Henrik Nordal.

The Norwegian Lotteries Authority submits an annual report to Norsk Tipping’s general meeting which assesses how the company meets the requirements to be an exclusive player in the Norwegian gambling market. In addition, we look at how the company succeeds in moving players from the illegal gambling market to Norsk Tipping’s games (channelling). In the report, the Norwegian Lotteries Authority recommends that the company do more to make the most dangerous games safer. Read the report here.

“We point out several areas for improvement that Norsk Tipping should implement. In addition, we recommend greater cooperation between the two exclusive players, Norsk Tipping and Norsk Rikstoto, related to information about the dangers of playing too much,” says Nordal.

Improvement measures

Nordal emphasizes that Norsk Tipping mainly offers gambling in a responsible manner, but that there are points for improvement for the company:

  • The Norwegian Lotteries Authority asks Norsk Tipping to map and report on the need for the number of game titles in Kongkasino.
  • Norsk Tipping and Norsk Rikstoto will collaborate to create similar and relevant information about the danger signal and health damage in the event of excessive gambling, aimed at the individual player and relatives.
  • Norsk Tipping should reduce the availability of Kongkasino from the login page in the app.
  • Norsk Tipping must evaluate the effect of a mandatory break after a game for one hour and map out improvement measures.
  • Norsk Tipping should reduce the size of jackpot winnings in Kongkasino to avoid high prizes triggering dangerous games.
  • Norsk Tipping must provide feedback on the completed evaluation of the break tools.

The Norwegian Lotteries Authority thinks it is very positive that Norsk Tipping has downgraded the loss limits at Kongkasino twice, as their analyzes showed more problematic gambling behaviour among risky players.

 

Overview and facts for the gaming market for 2021:

  • Norsk Tipping has an increase in the number of online players, especially in games in direct competition with illegal providers. The increase is 12 per cent in turnover. Casino games, scratch games and bingo are growing by just under 2 per cent. A small increase after the company took preventive addiction-creating measures by lowering the maximum loss limit.
  • Sports betting has the largest increase (27 per cent) due to strong channelling through the corona pandemic.
  • Norsk Tipping channels more players, also through 2021.
  • The turnover for Norsk Tipping’s current games increases at the same time as the turnover of the illegal players does not increase correspondingly.
  • The number of players at the illegal providers is stable or probably somewhat reduced. The turnover of the illegals is estimated to be approximately the same as in 2020, between NOK 1.8 and 2.2 billion.
  • Illegal gambling providers spend less money on advertising in Norway, but still more than Norsk Tipping.
  • The total gaming market in net turnover amounts to between NOK 12.9 and 13.3 billion in 2021. The share of the illegal players then amounts to 15 per cent. If we only look at games in direct competition, the illegal players have between 44-49 per cent and Norsk Tipping between 51-56 per cent

To measure the channelling, several parameters are used: figures from Norsk Tipping, results from the Lottery Inspectorate’s surveys, estimates for the illegal market and other sources that say something about Norsk Tipping’s ability to attract players. The market is estimated from public reports from illegal providers, GBGC and H2 Gambling Capital, Sentio and Norsk Tipping.

The assessments in the report are based on statistics from 2018 to 2021, guideline statistics, Norsk Tipping’s accountability report, the company’s handling of marketing activities and the Norwegian Lotteries Authority’s audit in 2021.

More players at Norsk Tipping

The Norwegian Lotteries Authority also measures how Norsk Tipping succeeds in bringing in Norwegians from the illegal gambling market, also called channelling.

“We see that more people play at Norsk Tipping. At the same time, it is likely that the illegal providers have a slight decrease in the number of players. This may indicate that Norsk Tipping succeeds in getting players into safer and more responsible games,” says Nordal.

Both Norsk Tipping’s betting offer, the rest of the regulated market and regulation affect how they meet the requirements as an exclusive right player.

“It is important that as few players as possible play with illegal players because there is the highest risk of losing large sums. Playing at Norsk Tipping is safer because they have stricter liability measures and absolute loss limits.”

Background to the report

This is the first time the report has been written so that it can be published in its entirety.

The report for 2021 contains:

  • assessment of the framework for responsible gaming
  • comments on Norsk Tipping’s accountability report
  • assessment of the achievement of the channelling goals of Norsk Tipping
  • calculation of the size of the illegal market
  • development of illegal gambling offered in Norway

The previous audit reports contain information about Norsk Tipping that is exempt from public access and therefore skimmed:

  • Report to Norsk Tipping’s general meeting 2021 (skimmed version)
  • Report to Norsk Tipping’s general meeting 2020 (skimmed version)
  • Report to Norsk Tipping’s general meeting 2019 (skidded version)

SOURCE: Lotteri- og stiftelsestilsynet (Norwegian Lotteries and Foundations Authority).

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