State companies increase TV ad expense in Norway

The local gambling regulator explained licenced operators have increased their advertising expense to counter unregulated offshore rivals.

Norway.- Gambling advertising has risen in Norway and severely criticised by several sectors but the local gambling regulator defended the increased expense. According to the regulator, licenced companies have been forced to invest in marketing campaigns in order to counter unlicenced offshore rivals.

The media regulator issued a report showing a 3% fall in total TV advertising expenses to €103 million but criticism arose against state-owned Norwegian operators Norsk Tipping, Rikstoto and Pantelotteriet, who spent 31% more year-on-year. In the 12 months to July 31, the three invested a total €25.7 million after a nearly 9% drop in the period before.

In order to fight unlicenced websites advertisings, the regulator increased restrictions but still has some work to do as they continue to show on TV. However, marketing spend fell by 10% for offshore companies as well as they reached a total €79.2 million. Nonetheless, it still accounted for about 82% of the total gambling ad expenditure.

“For licensed gambling providers win Norway, it is necessary to advertise in order to channel customers to the legitimate game offers,” Gunn Merete Paulsen, general director of the Lottstift, said. “The content of this marketing is strictly regulated and focuses on gaming with low risk of gambling addiction.

“We are also following developments closely, and expect that gaming providers who have Norwegian permission control the scope of marketing so that it does not go beyond the intention of channelling customers to the safe, regulated real-money offerings.”