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| Norway to close gambling TV
advertising |
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Illegal gambling
operators have been using a long-standing loophole in the Norwegian advertising
laws to continue running their advertisements on Norwegian television. Norway
is now preparing to introduce amendments relating to gambling products not
licensed to operate in Norway. However, many of the TV stations that run these
advertisements also broadcast from outside the country.
These
amendments to the Broadcasting Act are set to give the Norwegian Media
Authority more powers to ensure that Norwegian audiences will no longer be
exposed to advertising from these unauthorised gambling operators through local
internet providers or television distributors.
Gambling associated
issues are one of the major concerns of the Norwegian government, and that is
why the Scandinavian nation is one of the few in Europe to maintain a monopoly
model. This means that only the licensed and state-run gambling operators such
as Norsk Tipping and Norsk Rikstoto, can advertise on national television.
Online gambling portals such as
https://www.norsknettcasino.net/
provide multiple services to players on the internet, such as guides, how to
use responsible gaming tools effectively and help consumers avoid rogue casinos
- i.e. non-licensed brands.
Norsk Tipping does not market any of its
casino games on television at all, and it supports the moves launched last year
by Lotteri-og stiftelsestilsynet, the Norwegian gambling operator. The
Norwegian state gambling operator reported a sharp rise of risk and problem
players accessing online games, something that advertising encourages.
Since early 2018, Lottstift has been in consultation about how the
existing loopholes can be closed. However, how to effectively stop these
gambling companies has been a concern among various parties in the industry
since 2017.
Rules are
essential in order to protect those with gambling problems
The
new restrictions imposed on local banks and other financial institutions since
January 2020 are meant to regulate payments and receipts from offshore gambling
companies.
Each institution was notified by Lottstift in writing to
ensure that no gambling-related transactions are processed if they are not from
an authorised company.
Furthermore, the banks are required to
investigate these types of transactions, and their findings must be reported to
the Norwegian
gambling regulator. Banks known to facilitate these types of transactions
for offshore gambling operators and their payment processors have been asked to
submit detailed reports about their role in these transactions.
Broadcasting revenues have
dropped
Already in 2019, advertising spending decreased by 19%
from these unauthorised online gambling operators
according to a report released in October by the Gambling regulator. The value
of this decrease is approximately NOK631 million.
It was estimated in a
separate report by Oslo Economics in August 2019, that the annual advertising
revenue of broadcasters could drop a further NOK500 million when the stricter
rules to come into force. Discovery Networks Norway (DNN) and Nordic
Entertainment Group (NENT) are the biggest earners from foreign gambling
advertising each year with an income of NOK500 million from these companies.
By dropping this advertising, they will be forced to lower their prices
on these ad slots, which could lead to a further loss of income for them of
anything between NOK 250 to NOK500 million annually.
Furthermore, the
repercussions of less income entail less spending on new productions and
content, which will result in a decrease of viewership figures. Unfortunately,
this would also decrease their ability to have the rights to some major
sporting events. The country’s media industry will be negatively impacted
if DNN and NENT lowered their spending on locally-based content
production.
In addition, other broadcasters who do not show these ads
are then given an unfair advantage and would strengthen their competitiveness
because their revenue will remain the same. Oslo Economics named TV2 as one
such example.
Initiatives
with results
Of utmost importance to the Norwegian Ministry of
Culture and Gender Equality is that precedence is given to those with gambling
problems and their relatives.
Both the previous Minister Trine Skei
Grande and the current Minister Abid Q. Raja feel that financial consequences
are not as important and that the media should not only rely on advertising to
fund their content and productions.
The Ministry of Culture’s
initiatives are to remain committed to the Norwegian media, but most
importantly, they need to regulate online gambling in order to protect the
Scandinavian nation’s population from gambling-associated issues.
Both state-owned gambling entities, Norsk Tipping and Norsk Rikstoto
are committed to allocating funds toward various social efforts that include
humanitarian work, healthcare, research, and cultural initiatives.
It is
imperative that the negative social effects of gambling on society are
minimised, and reducing TV advertising is a critical measure to reaching the
goal. Here’s a list of all the licensed online casinos. |
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