Tage Pettersen: “Norway is a gambling nation; I think the market is larger than the population would suggest”

The Høyre MP discusses the feasibility and potential benefits of replacing Norway’s state gambling monopoly with a competitive regulated market. 

Exclusive interview.- Gambling in Norway remains the preserve of state-controlled Norsk Tipping and Norsk Rikstoto. It’s one of the few European countries to retain such a structure, and the other major Scandinavian nation with a state gambling monopoly, Finland, plans to liberalise gambling from next year. Could Norway follow suit?

Tage Pettersen of the Norwegian conservative party, Høyre, has called for an end to Norway’s state monopoly on gambling. He says that opening the gambling market to competition would provide better player protection amid a scenario in which many use unlicensed operators that offer no safeguards. Estimating that 50 per cent of online gambling in Norway takes place with unlicensed offshore operators, Pettersen suggests the country learn from liberalisation undertaken in neighbouring Sweden and Denmark.

Is it a real possibility, how much work would be needed to prepare the existing state gambling regulator, and what about the state’s interest in Norsk Tipping? Focus Gaming News caught up with Pettersen to learn more about how he sees a potential market opening.

How receptive are other parties to the proposal to open regulated gambling in Norway? Do you see a market opening as a real possibility in the near future? 

The first step towards a licensing model is to convince my own party. In the Norwegian parliament, there are currently two or three parties that are positive about a change. But together with us, they could form a majority after the elections in September.

What about public support?

The people of Norway are very happy with Norsk Tipping. They have had a monopoly since 1948. The profits from Norsk Tipping go entirely to sports, culture and socially beneficial purposes. That is why the monopoly model has many friends. At the same time, the world is getting closer to us and many young people today play foreign games. Norway is now the last country in Scandinavia to have a monopoly and that is probably also influencing a change here at home.

Finland’s move to introduce a licensing system has advanced relatively quickly. Do you think Norway could also make advances that fast?

If there is a political majority for a new model, it should go as quickly as in Finland. I think the Norwegian Gambling Authority could function as a licensing and supervisory authority. There is certainly a need for some adjustments, but they have a lot of expertise.

Do you think Lotteritilsynet needs more powers to tackle unlicensed operators in the meantime?  

Various Norwegian governments have in recent years given the Norwegian Gambling Authority many new tools to deal with unlicensed operators in Norway. I am unsure whether there are more unused tools without us interfering too much with people’s privacy.

Sweden is often considered a model, but concerns remain about the rate of channelisation to licensed offerings. Do you think an open market in Norway would be attractive enough to avoid the same problem?

I have said that Norway must learn from the processes in Denmark, Sweden and Finland. We must take the best from all countries. Norway is a gambling nation, so I think the market is larger than the population would suggest. But this is a challenge we must take seriously. But in any case, the channelling of gambling on online games is obviously lower today than with a licensing model.

What role do you see for Norsk Tipping and Norsk Rikstoto? Would they be able to compete in an open market, and should the state retain its stake in the former?

The state can easily retain ownership of Norsk Tipping. I think they will live very well in an open market. Already today, their largest income is from products other than online games. That can continue just as before. Then they should also apply for a license for their online games. 

Rikstoto is struggling with its attractiveness today, and I think they would have great potential for growth in an open market. Therefore, I don’t quite understand why they are working so hard against it. The former monopolists are positive in our neighbouring countries.

I would like to say in the end that my commitment to this matter is about establishing systems that can take care of problem gamblers far better than today.