Norsk Tipping, Norway’s gambling monopoly, is set for a significant adjustment in its advertising strategy. Following a mandate from Lottstift, the Norwegian Gambling Authority, Norsk Tipping advertising cuts of at least 20% are due to take effect in 2023. This substantial reduction stems from growing governmental concerns over the availability of gambling services to vulnerable groups, including minors.
Mandate’s Impact and the Marketing Scenario
In line with this directive, Norsk Tipping is to develop a strategy to slash its advertising outlay by around €5 million (NOK 45m). Protected by Norway’s rigid gambling regulations, Norsk Tipping and Rikstoto, with a remit over betting and racing respectively, are the sole operators permitted to advertise through national media.
In a notable victory last year, Lottstift and media authority Medietilsynet triumphed over Discovery Europe in a long-standing disagreement over the promotion of unlicensed gambling operators to national audiences via international broadcasting channels. As a result, Discovery adjusted its advertising strategies for Norwegian audiences across digital TV platforms such as Telia, Telenor, RiksTV, and Altibox.
The ‘New Reality’ of the Norwegian Gambling Market
Lottstift has asserted that Norsk Tipping must adapt to significant changes within the gambling market, citing reduced necessity for high-profile exposure. Atle Hamar, General Director of Policy for Lottstift, stated: “It is a completely new reality in the Norwegian gambling market. The illegal actors are gone from the TV screens, and Norsk Tipping is almost alone in the most effective marketing channels.”
Earlier this year, regulatory concerns prompted warnings to Norsk Tipping of potential advertising restrictions. Responding to this, the monopoly decreased its marketing budget from €32 million (NOK 314m) to €23 million (NOK 227m).
Norsk Tipping’s Next Steps
The onus is now on Norsk Tipping to outline how it plans to adjust to the decision by August 11. It’s also worth noting that Norsk Tipping retains the right to contest the verdict at a government level, marking another potential shift in the landscape of Norwegian iGaming industry.