Gambling ads ban in Norway could affect broadcasters’ revenue
The proposed block on foreign gambling advertisement could end up hurting broadcasters’ revenue in Norway.
Norway.- The Ministry of Culture of Norway proposed earlier this year a legislative amendment that could stop gambling advertising from other countries. A new report from Oslo Economics has revealed that if that actually happens, broadcasters’ revenue could suffer a major hit.
The report says that Discovery Networks Norway (DNN) and NENT Group could end up losing revenues from advertising of €25 million to €50 million if the bill obtains passage. The companies are the third and fourth largest broadcasters in the country, respectively.
Minister of Culture and Gender Equality Trine Skei Grande said: “There has been a lot of noise around the proposal and it is important for us to consider possible consequences. At the same time, it is important to point out that this is a value. Taking care of those who are struggling with the gambling problem must weigh most.”
Naturally, the report isn’t great news for these companies. NENT Communications Director Line Vee Hanum said that they are sceptical about the process from the Ministry of Culture. He explained that there’s a proposal for a ban on the dissemination of gambling advertising. However, he says that the proposal doesn’t take into account the possible consequences. The director described this process as “chaotic”.
DNN Communications Director Espen Skoland agreed with Hanum. He said that “craftwork is rarely good.” The director added: “The report, unfortunately, confirms what we feared.”
The Ministry of Culture said that they will receive comments on the report until August 31. After that date, it will review all feedback in order to decide how to proceed.
The proposed ban
The government proposed the legislative amendment back in March as an attempt to improve player protection. Gunn Merete Paulsen, director of Norway’s gambling regulator Lotteri- og stiftelsestilsynet had said that the proposal would have a positive effect. “Gaming advertising that gets straight towards Norwegian customers is currently intense and this subject has been a problem for a long time,” said the regulator.
Paulsen talked about a 2014 report that made the suggestion that Norway needed new measures to stop an uncontrolled stream of advertising from foreign sites into Norwegian TVs. Another report made a similar suggestion in 2017. After these reports, the government decided to take action and therefore it unveiled a proposal that would change broadcasting laws.
