Norsk Tipping Must Cut Advertising by NOK 45 Million

August 15, 2023 | Advertising

Førde, Norway (July 25, 2023) — The Norwegian Lottery Authority insists that Norsk Tipping must cut marketing costs by at least 20 percent this year. Norsk Tipping must therefore reduce marketing by more than NOK 45 million in 2023.

– It is a completely new reality in the Norwegian gambling market. The illegal actors are gone from the TV screens, and Norsk Tipping is almost alone in the most effective marketing channels. Then the Norwegian Lottery Authority expects the monopoly operator to be ready to make major changes in a short time, says director of the Norwegian Lottery Authority, Atle Hamar.

The monopoly operators cannot market themselves more than is strictly necessary to lead the gambling appetite in the population towards safe and responsible gambling. For Norsk Tipping, this means that their marketing must be adapted to the marketing pressure from the illegal gambling companies, such as Unibet and Betsson.

The decision comes after Norsk Tipping was notified of the decision on 5 May this year . Here, the Norwegian Lottery Authority announces that Norsk Tipping must reduce the costs of marketing by at least 20 per cent. The Norwegian Lottery Authority has, following input from Norsk Tipping, adjusted the basis for the cut from NOK 314 million to NOK 227.5 million.

– We have gained more detailed knowledge of Norsk Tipping’s advertising costs, which means that the requirement for cost cuts has been reduced from NOK 63 to 45 million, says Hamar.

The Norwegian Lottery Authority is currently excluding some of the costs associated with marketing and sponsorship, among other things.

– This is not a “health report” of what was kept outside the cut. The Norwegian Lottery Authority will continue to supervise advertising and marketing. For Norsk Tipping, we will particularly look at how sponsorship is linked to marketing and go more thoroughly into the sponsorship agreements.

Must respond by August 11

Despite the decision, the Norwegian Lottery Authority believes that Norsk Tipping will have good conditions for operating in the future as well.

– Norsk Tipping’s brand stands firm. As a sole trader in the Norwegian market, it is not a goal to make as much money as possible. They must give the people a responsible gambling offer, and help ensure that there is the least possible gambling problem, says Hamar.

Norsk Tipping has until 11 August 2023 to provide feedback on how the company will adapt to the decision. They can also appeal the case to the Lottery Board.

All legal actors must adapt

The change in the Norwegian gambling market will also have consequences for the other legal players.

– We have established a similar supervision with the Norwegian National Statistics Office, but here the process has not progressed as far. The other legal Norwegian players must also adapt to the changes in advertising pressure from the illegal players. The Norwegian Lottery Authority will focus on this in our inspections going forward, says Hamar.

SOURCE: Lotteri- og stiftelsestilsynet (The Norwegian Lottery and Foundation Authority).
Tags: , ,