The Monopoly of Best Gambling Sites in Norway

Norway’s betting system has recently come under fire thanks to a new push to block betting on foreign websites. Its movement toward a DNS blocking bill has drawn fire from various players in the gaming industry, including the European Gaming and Betting Association (EGBA). But where did this problem begin and how is it likely to be resolved? We’ll dive in and discuss the best gambling sites in Norway while we’re at it.

At any point while reading this article, you can jump directly to sections that may be the most relevant to you. Just consult the table below and find the link you need. There is also a FAQ at the end to go over some more specific questions you may have. For even more information, you can consult our Norwegian gambling play to learn more about the best gambling sites for Norwegian players.

• Norway’s Gambling Monopoly Explained
• EGBA urges to drop the monopoly of best online gambling sites for Norwegian players
• The Story Behind Norsk Tipping
• Norway’s Lottery and Development of Online Gambling

Norway’s Gambling Monopoly Explained

One of the first things to know about Norway’s gaming industry is that gaming is controlled by two companies, which are state-owned. These are Norsk Tipping and Norsk Rikstoto. Norsk Tipping falls under the umbrella of the Norwegian Ministry of Culture, and controls various games including lottery, scratcher games, video terminals, and betting on some sports. Norsk Rikstoto controls only bets on animal racing, particularly horse racing. In Norway, parimutuel betting is the norm.

We’ll get to how both companies came to be and what their current roles are in the Norwegian gaming landscape, but first, let’s take a look at the monopolistic system that exists in Norway’s betting landscape now. Norway’s gambling industry is considered a monopoly because it is essentially owned just by these two companies. Furthermore, Norsk Rikstoto and Norsk Tipping have clearly delineated responsibilities and games they control; therefore they are not in competition with each other.

This means that there is no competition within Norway’s gaming industry. This is considered dangerous by many – it’s the reason anti-monopoly laws exist. That is because without competition, these companies can set prices at whatever level they wish to without fear of being deserted for another option, since they are the only legal option in the country. They also may not be motivated to offer new innovation or special features to customers, since there is no drive to do so from other competitors in the industry.

However, in the case of Norway, that last bit is not the full truth: in fact, Norwegian bettors do have other options for playing games, though these exist in a legal gray area. In fact, some of the best gambling sites in Norway are available, just not from Norwegian companies.

Competition From European Neighbor Countries

Norway’s gaming firms do have some competition, but some do not consider these legal. The truth is that many players in Norway choose to bet on platforms that have a base in other EU countries, like neighboring Sweden. Early on, these companies saw a gap in the market thanks to Norway’s famously strict gaming laws and limited betting landscape. They filled the gap in the market by advertising to Norwegian players and offering bets on their sites in their local currency.

For some time, bettors in Norway were able to use their regular payment methods to bet on foreign sites. This has become trickier in recent years thanks to various laws passed with the intention of controlling the gaming industry further. Now, many people have turned to using e-wallets, for example, in order to bet on the best online gambling sites for Norwegian players.

Fears of DNS Blocking

The betting situation in Norway could be further complicated if a new proposal is passed into law which would effectively force web providers to block foreign betting sites. The proposal is still being discussed and most likely, it will take some time for it to pass through the full legislative process and be put into effect. Still, it has raised many concerns for players and people in the industry. One of the questions is, can Norway legally limit its residents in this way?

Some have argued that, as citizens of the EU, players in Norway should have access to all of the same betting sites that are headquartered through other EEA countries where betting is legal. However, when cases have been taken to court in Norway, the court sided with the Norwegian law, which is forcing many of the best gambling sites in Norway to stop doing business there.

It brings up several interesting issues. One might wonder whether this case could go to a higher, international authority for example and what their ruling would be on the matter. It also brings up an ethical dilemma as blocking players from betting on competing sites has effectively created a black market for betting.

EGBA urges to drop the monopoly of best online gambling sites for Norwegian players

It is not only betting platforms like Unibet who are arguing their case in Norway. There are also international organizations like the European Gaming and Betting Association (EGBA) that are urging Norway to drop its strict policies and create a more hospitable environment for gambling and betting.

What Is the EGBA?

The EGBA is a trade organization, currently based in Brussels. It works across Europe to represent the wishes of online gaming operators. It only represents licensed platforms, i.e. companies working legally in the EU. The EGBA makes a priority to work with regulators in order to create a safer online betting environment for all who use it. Consumer protection and demand are some of the key issues in its work.

It is worth noting also that EGBA works closely together with the International Betting Integrity Association (IBIA) in order to combat clandestine gaming and issues like match-fixing and money laundering, which unfortunately do occur in connection with sports betting. Its members are expected to meet standards of conduct in this regard and to comply with information queries and investigations when they occur.

Members of EGBA hold about 270 licenses and serve more than 30 million customers every year. This is only in the EU, though their work covers 22 member states. They have calculated that members of the association contribute a third of Europe’s total online gambling revenue per year.

Where Does the Egba Come In With Norway’s Gambling Monopoly?

When it comes to online casino gaming in Norway, the EGBA has said that Norway has a gambling monopoly problem. This is an important issue because another goal of the association is to create online gaming platforms and an environment that is appealing to users, so they are not driven to using illegal means of gaming instead. Essentially, they focus on the safe, legal and controlled alternatives.

The EGBA has argued that Norway’s current policies drive customers away from reputable sites and towards clandestine ones. While Norway has tried to eliminate online gaming outside of what Norsk Tipping can offer, the reality is that customers still find means of accessing the best gambling sites in Norway.

So what is the solution? The EGBA has suggested multiple times that Norway must stop its monopolistic system and open up the gaming industry to outside companies, so that customers have choices of where they bet. Its members think this could be achieved if Norway allowed operators to apply for licenses in a systemized way, as is already the norm in many countries with legal betting. These companies could be made to adhere to the standards of the industry, and would give customers more legal options.

The Story Behind Norsk Tipping

The history of Norway’s main gaming regulator and provider, Norsk Tipping, goes back to 1946 when the Tipping Law was passed. The company was formed and given a license to operate for five years, allowing legal gaming. Before this moment, Norway also passed bills on gaming in 1902 and 1927, banning some types of gambling and allowing for racing on horses, for example.

The company started to operate in 1948. Turnover that year was 18 million NOK, or about $1,690,700 USD. If adjusted to account for inflation and today’s prices, that amount would be more like 439 million NOK! The company continued to grow through the decades, increasing its prize pot amounts and advancing in how it operated ticket sales. In the ’70s it moved away from a manual sorting method for tickets.

Norway’s Lottery and Development of Online Gambling

The company launched its lotto in 1986, which became a huge success after similar companies started around Europe. This is also the first year in which Norway’s cultural sector gained profits from the gambling industry. That year, its turnover reached 2 billion NOK – or about 5 billion by today’s rates. The company became fully state-owned only in 1993. In 1994, ahead of the Olympic Games, Norsk Tipping introduced limited sports betting options.

In the early 2000s, the company introduced an online gaming platform that could take secure card payments. It also was given full control of slot machines, which used to be privately owned in Norway. This was also seen as an attempt to create safe gaming for consumers and give the government more control over preventing problem gaming. To this day, much of the Norsk Tipping website consists of gambling education, prevention and support for problem gaming issues.