Pro-privatisation circles are pressing and trying to prove that the current model should be entirely revamped. Recently, Norway’s government-owned gambling operator Norsk Tipping has found itself at the centre of yet another controversy as it has been found that the state regulatory body is investigating it for issues with its self-exclusion process. It comes swiftly on the back of the iGaming provider being handed a large NOK4.5 million ($410 million) fine for player safety and money laundering breaches. The company had allowed one player to receive a payment worth millions of dollars, breaking the limit of $9,500 that players are permitted to receive from casino gaming.
The latest development revolves around its self-exclusion measures, which the authority believes has not been sufficient to protect players suffering gambling problems. The process, mandated by the state and in place in many other jurisdictions, requires iGaming operators to allow players to choose to block their own access from gambling. According to a press release, the investigation that the Norwegian Gambling and Foundation Authority is undertaking is focused on whether the operator’s self-exclusion actually fully prevented players who had opted in to it from accessing their services. It is believed that players who had done so could still access the games and betting options through the app, essentially circumventing the self-imposed restrictions.
If found to be true, this breach could be a serious problem for Norsk Tipping and its monopoly on the gambling industry in Norway. The safe online casino industry in the country is much different to those in other countries in Europe in that the operators aggregated by sites like svindel.info are not currently available to be licensed by the regulator. Instead of offering licences to private companies, the Government has entire control over which operator can provide services to players. However, these multiple breaches could indeed call the suitability of the current model into question. Many would ask the question: if the state’s own companies are unable to prevent such indiscretions, could the private market not ensure players are better served?
Online Casinos in Norway May Move to Private Sector
Given that the nature of these breaches is serious and happening under the auspices of the state’s tight regulatory framework, it is understandable that some would question whether the model in its current format is fit for purpose. Combined with recent developments in other Nordic countries, this have led some experts to state that they see the end of the monopoly in sight. Finland is putting into motion a brand-new gambling bill that would take the gambling operations out of the hands of the state and give the private sector the ability to apply for licences for the different gaming offerings in its borders. If that were to happen, it is believed by some leading figures that the other nations with the monopoly model (Norway, Sweden, and Denmark) may follow their lead.
The move would require a real change in focus in the parliament of Norway. The Norwegian parliamentary elections are scheduled to take place in September 2025 and the Conservative Party, known locally as Høyre, has pledged to change the industry in its 2025-2029 manifesto. In its appeal to voters ahead of its unsuccessful campaign for 2021, they had actually stood on preserving the monopoly in an effort to maintain robust player safety controls. However, as it battles to ascend from opposition to ruling party, it has changed its stance and would seek to introduce a liberalised market akin to the rest of Europe, where the state serves as an overseer and investigative body rather than the sole operator.
The industry experts predicting a change are suggesting that 2028 may be when the Nordic monopoly model is finally toppled. Finland’s bill, if approved, is set to come into action in 2027. If Høyre does win the election in 2025, they would have to first introduce a draft bill that would propose the changes to the framework and ensure it had enough support to pass through parliament successfully. That would mean that the finalisation of the bill would likely take us close to the next Norwegian election, set to be held in 2029. If it were to come to fruition, it would mean that established operators could finally enter the country’s market and those critical of Norsk Tipping and Norsk Rikstoto (the state horse racing betting provider) would suggest that the competition of privatisation could lead to safer operation. However, detractors may say otherwise.
Private Market Not Perfect in Combating Breaches
While pro-privatisation circles will point to the breaches at the state-owned operator as evidence that the current model should be entirely revamped. However, it is important that context is provided to these claims given that the rest of Europe is largely a liberal gambling playground. Though breaches of any kind are a serious issue, especially at the state level, that doesn’t mean that the private market has entirely rid itself of bad actors or lapses in security. In fact, other jurisdictions and their regulators have struggled with their own legal campaigns.
Looking specifically at the UK, a market that has been at the forefront of legal gambling on the global stage. Just in 2024, there have been a number of breaches and fines levied against big-name operators by the state’s regulator. The Gambling Commission’s own website, gamblingcommission.gov.uk, reported that bet365, one of the leading iGaming providers in the country, was fined more than half a million pounds for breaches of anti-money laundering and social responsibility failures. That this happened to such an established name shows that there is imperfection in the private model and that the free market can’t iron out all problems.
If an entirely new framework was to be established, it would require a robust Commission that could handle all issues that may arise. The difficulty for Norway and the rest of the current monopolies is that the problems that have already been identified within its own operators suggest that a much wider pool of providers would mean a more switched-on approach to regulation. In its current guise, it doesn’t appear to have the capacity to deal with the many different providers that a market like the UK and Ireland already has. There would be clear teething issues, and the early stages would likely mean a stretched-thin regulator overwhelmed by an entirely new industry.
As it stands, Norsk Tipping is not at immediate threat. However, should it continue to find itself at the heart of controversy, and in the face of growing change across its neighbours, it is possible that it could be replaced and removed as the sole operator of the Norwegian gambling market. If the Norwegian government can’t get its own house in order, expect to see even louder calls for more privatisation.
