Norway Achieves Success in Channelization but Faces Rising Risks Among the Youth
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Norway Achieves Success in Channelization but Faces Rising Risks Among the Youth

Norwegian Gambling Authority Highlights Increased Domestic Engagement and Youth Risk in Gaming

The landscape of gambling in Norway is evolving, with the Norwegian Gambling Authority reporting a notable rise in local participation while cautioning about the welfare of younger players under the gatekeeping of Norsk Tipping, the state-run monopoly.

In an insightful 2024 report, the regulatory body revealed that Norsk Tipping attracted over two million users, marking an 11% growth from the previous year’s 1.8 million. This increase reflects a broader trend of individuals gravitating towards domestic offerings in the face of a troublesome foreign market that has seen significant decline.

The report, released on April 24, indicates not just a surge in local play but also an upturn in overall domestic gambling revenues. This positive shift is largely attributed to the regulator’s proactive measures against illegal gambling sites, compelling players to engage primarily with the products of the established monopoly.

Norsk Tipping and its pari-mutuel counterpart, Norsk Rikstoto, reported a substantial boost in turnover. Figures surged from NOK 2.6 billion (approximately $249 million) in 2023 to NOK 3.1 billion in 2024, demonstrating an impressive 19% growth year-on-year. Similarly, Norsk Rikstoto experienced a 5% rise in active participants, reaching 175,000.

Contrarily, the illegal gambling sector saw its turnover fall by 18% in 2024, dropping to NOK 1.3 billion from NOK 1.6 billion in 2023. This decline underscores the effectiveness of the Gambling Authority’s strategies in suppressing unauthorized gambling operations.

Director Tore Bell remarked on the changing habits of players, noting, “An increasing number of individuals report playing Norwegian games, primarily opting for local options."

Declining Illegal Gambling Presence

The unregulated gambling market is witnessing a contraction, holding a share of only 22-28% of high-risk online casino games in 2024, down from a peak of 35% the previous year. The Norwegian Gambling Authority has intensified its efforts, actively blocking various unauthorized websites and payment gateways while collaborating with tech giants like Google and Facebook to mitigate black market advertisements.

In April, the authority took decisive action by blocking 57 unlicensed gambling sites, a move that followed warnings to nearly 50 companies in the autumn of 2023. Many of these operators withdrew from the scene, marking a significant shift in the regulatory environment.

Addressing the Welfare of Young Gamblers

A pressing concern arises from the ongoing channeling efforts: an uptick in younger individuals engaging in high-stakes games. The Authority has prompted Norsk Tipping and Norsk Rikstoto to bolster their protective measures for younger users.

Recommendations include recalibrating the risk levels of casino games and enhancing visibility for self-exclusion options. Furthermore, promotional content aimed at individuals under 25 should be minimized to protect this vulnerable demographic.

Bell emphasized the unintended consequences of effective channeling, stating, “While we see an influx of new players for exclusive operators, it’s worrying that many younger gamblers exhibit the behaviors of seasoned players, often gravitating towards more dangerous games.”

To combat these trends, Norsk Tipping has implemented stricter loss limits for younger users. Those aged 20-21 now face a monthly cap of NOK 3,000 (£216), while users aged 22-24 have a higher limit of NOK 5,000.

Surveys conducted by Norsk Tipping revealed that one in five men between 18 and 25 engage in risky or problematic gambling behaviors. The findings highlight the need for continued vigilance, given the apparent normalization of casino gambling amongst younger males, amplified by influences such as gaming streamers and virtual item betting practices.

As the Norwegian landscape continues to adapt, both regulatory bodies and gaming operators face the challenge of ensuring a safe and responsible environment for all players, particularly the youth, amid shifting market dynamics.

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