Norwegian TV Distributors and Internet Providers to Fight Overseas Gambling Ads

The government of Norway came up with legislative changes to prohibit offshore gambling operators from advertising on television in the country. The suggested amendments to the Broadcasting Act aim to permit Norwegian Media Authority to order Norwegian TV distributors and internet providers to halt access to illegal marketing.

These discussions have been underway since 2017, and ever since the Government has been putting efforts to prevent unlicensed operators from advertising in the country. The major problem is a loophole, widely exploited by non-local companies, which allows them to advertise via channels that broadcast into Norway from foreign locations.

Whose Interests Matter the Most?

In April 2018, Lotteri-og stiftelsestilsynet (Lottstift), the gambling regulatory authority, launched a consultation on the issue. In addition to this, the authority issued a warning to local newspaper outlets, requiring them not to print out odds offered by unlicensed operators.

Abid Q. Raja, Minister of Culture and Gender Equality said the changes are being considered as the ban on marketing illegal gambling has been difficult to enforce. What Raja aims at it that the TV stations broadcasting into Norway operate outside of the country’s jurisdiction, which is why full control is impossible.

Minister commented:

“For the government, this is a value choice where the interests of people with gambling problems and their relatives must take precedence over financial considerations.”

At the time being…

…Norway only has two state-owned bodies permitted to offer and advertise gambling products in the market. Norsk Tipping displays draw-based and casino games, and also supplies video terminals, thanks to an agreement with Scientific Games. Norsk Rikstoto offers totalisator games.

Together these bodies raise money for socially beneficial purposes, including humanitarian work, sports, healthcare, research, and cultural initiatives, generating NOK5.5bn in 2018.

As a small reminder…

…Norsk Tipping openly supported a proposal, as the number of players who exhibit problematic behavior has drastically increased. More specifically, the lottery operator decided to stop casino game advertisements as well as the offering of bonuses and casino spins.

Huge Impact on Revenue

Should the ban come into force, broadcasters could see advertising revenue slashed by as much as NOK500m per year.

Last October…

…the regulator reported a 19% year-on-year drop in advertising spending by offshore operators over the previous year. According to the research from the country’s media watchdog Medietilsynet, based on a report from Nielsen Media Research, advertising spends by unlicensed companies over the 12 months to 30 July 2023 increased to NOK631.0m (£44.5m/€49.8m/$54.8m).

Among other measures, Norway introduced a ban on payments to unlicensed operators from 1 January 2020. These proposals, introduced in August 2018 encountered negative criticism on behalf of the European Gaming and Betting Association (EGBA), which advocated a regulation revision to enable both sides to co-exist without endangering each other.

Source:

“Norway moves to finally end TV advertising loophole”, igamingbusiness.com, February 28, 2020.