EGBA calls on Norway to end online gambling monopoly
The European Gaming and Betting Association (EGBA) is calling on Norway to end its online gambling monopoly. The main argument behind this demand is based on a problem that is only too well known in Germany: the black market is booming due to such a complete state right. In order to curb this development, a licensing system should be introduced - if the ECBA has its way. But there are other interests at play here.
In fact, many European countries already have licensing systems that allow private gambling companies to enter national markets and legally offer their services. Germany is just one of many examples. Norway, on the other hand, still operates with a state gambling monopoly, making the otherwise very liberal country one of the last regions in Europe where international online casinos or sports betting providers are actually not allowed to operate. Norsk Tipping has the rights for casino games and sports betting, while Norsk Rikstoto is responsible for horse racing.
The European Gaming and Betting Association in Brussels considers the Norwegian model to be totally unsuitable. As the European gambling industry's representative body, it recently issued a statement calling on Norway to abandon its monopoly system. It should follow the example of other major markets and move to a free-for-all for private companies with appropriate licences. In Norway, the desire for diversity in gambling clearly outweighs concerns about betting with illegal operators. However, the reason for the call is not only to protect players, as a closer look at the facts shows.
Demand for alternatives to state-run gambling is high
In a recent interview, EGBA Secretary General Maarten Haijer criticised the Norwegian state for still clinging to its monopoly on regulating online gambling. He warned that the model does not have the desired benefits. Instead of protecting gamblers, he believes it is a major factor in driving consumers to unlicensed sites:
"The belief that a monopoly model is essential for safe gaming is not in line with the current European trend," said Haijer. "Almost every other European country has introduced some form of licensing system, successfully prioritising player safety within a legal framework that sets clear rules for private companies."
Haijer continued: "In Norway, there is a clear demand for alternatives to the current gaming monopoly, as evidenced by the determination of players to actively seek out international sites that offer them greater choice. It is vital that the government recognises and responds to this demand in order to maintain player protection.
He also stressed that the wishes and expectations of today's players could only be met in an open market. He did not ignore the benefits to the state: "Norway would, of course, see a significant increase in tax revenue as a result of opening up the market. Measures to ensure safe gambling would also be massively strengthened by the sensible regulation of multiple operators in the country.
The EGBA becomes clear
Haijer finds very clear words in his statement:
"Norway is the only country in mainland Europe that maintains an exclusive gambling monopoly. It is important that the authorities consider whether this approach is still relevant in the modern digital age and in comparison with the practices of other European countries.
We urge the Norwegian authorities to consider the benefits of a licensing model. This can effectively meet the evolving needs of players and promote a more comprehensive approach to gambling regulation that prioritises player safety".
About the EGBA
Within the Brussels-based European Gaming and Betting Association (EGBA), leading EU-based, licensed and regulated online gaming operators represent their interests on the continent. It is a trade association that works with national, EU authorities and other representatives to ensure an appropriately channelled yet profitable online gambling market. Thus, on the one hand, the EGBA acts with the players and their security in mind, but on the other hand, it also acts with the business of its members in mind. Casinos or sports betting providers with the EGBA seal are accordingly to be classified as reputable. Well-known participants are bet365, Betsson, Entain, Flutter Entertainment, Kindred Group and William Hill with their various online offers.
Threat of ban: Well-known EGBA gaming companies pull out of Norway
The gambling monopoly should prevent international casino and sports betting operators from operating in Norway. Nevertheless, some big names are quite active there. These include members of the EGBA, although there has been some movement in recent weeks.
Kindred, for example, has withdrawn from Norway. The company operates sports betting and casino platform Unibet, among others. Betsson, ComeOn! and bet365 are also said to be in the process of pulling out.
The reason is as simple as it is drastic: Norway is stepping up its fight against illegal gambling. A network block has been announced for 2024, which will affect EGBA casino and sports betting operators. In addition, operators could face criminal proceedings and fines.
Conclusion
EGBA Secretary General Maarten Haijer has taken a rather bold step here: his arguments are of course justified and certainly valid. However, they are somewhat questionable because everyone - including the Norwegian government - should quickly realise that the association is primarily representing its own economic interests with this demand.
If EGBA casinos and sportsbook operators are actively excluded in Norway in the future, players will migrate to less legally vulnerable alternatives and may have very negative experiences there. There is no question that this is an unpleasant situation for gamblers. But it also means that EGBA members will simply be unable to do business in Norway. Given that many of the country's citizens appear to have a keen interest in gambling, the market exclusion is likely to give those responsible a few more sleepless nights.
Image source: Screenshot Logo https://www.egba.eu/
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