Norsk Tipping achieved positive results within the company’s key performance indicators in 2022. For the third year in a row, the company set a new record for the number of players. No fewer than 2.14 million unique customers played a Norsk Tipping game in 2022, and 29.5 per cent of these were under 40. This shows that the company’s offering is attractive enough to channel the desire to gamble in all age groups 18+ to a regulated offering within a responsible framework. Almost 50 per cent of the population aged 18+ played Norsk Tipping’s games.
It is important to the company that most people have a relationship with Norsk Tipping, and the development in this area is therefore positive.
The company’s reputation is also of major importance in ensuring that it is trusted by the public. Norsk Tipping primarily uses Kantar’s syndicated reputation survey to measure the company’s reputation. The company achieved a score of 71 points in 2022. This is an improvement from 70 points in 2021 and is a sign that the company has a good reputation. It was among the top five of the 70 companies that took part in the survey.
The population-based survey on gaming in 2020 showed modest growth in the extent of problem gambling in Norway. As the largest regulated provider of gaming, Norsk Tipping has an opportunity to influence this trend going forward. Norsk Tipping measures the scope of its customers’ risky gaming behaviour via its own index. This index showed a positive development for the second year in a row, where the customer base as a whole moved towards ‘greener gaming behaviour’.
The overarching goal of the responsibility work in the company is to protect vulnerable players, and our ambition is to be a world leader in this area. The company is constantly working on modifications, large and small, aimed at strengthening the protection for these groups. The ‘Spillepuls’ concept was launched in 2022. This is a solution involving real-time player interactions where the goals are to make them aware of their gaming and to get them to take steps to reduce the adverse consequences of gaming. One example of this is lowering their personal gaming limits.
In 2022, the authorities succeeded in getting the unregulated providers to reduce their TV marketing targeting Norwegian players. Both NENT Group and Discovery have now stopped broadcasting commercials for unregulated gaming companies. The Norwegian Gaming Authority is also following up unregulated providers who contact Norwegian players. The company Trannel, which is behind a number of websites that target Norwegian players, is subject to a coercive fine of around NOK 1.2 million per day until it stops offering gaming in Norway. This is an example of the authorities making an important effort to protect the Norwegian gaming model.
Norsk Tipping’s total operating revenue increased from NOK 44 billion in 2021 to NOK 47 billion in 2022. Because of the high prize shares and high degree to which prizes are reused as stakes in some of the company’s games, the development of net gaming revenue (gaming revenue less prizes) is considered a better measure of the scale of activity. Net gaming revenue amounted to NOK 8.99 billion. This represents growth of NOK 321 million (3.7 per cent) from 2021.
The operating expenses (without prizes) grew by NOK 92 million compared with the year before. Sales commissions were lower, while other operating expenses grew slightly. The total growth was 3.9 per cent, which was lower than price inflation in the same period. Overall, the surplus funds grew from NOK 6.286 billion to NOK 6.582 billion, which represents year-on-year growth of 4.7 per cent.
Lotteries are the company’s biggest category. The category accounted for 64 per cent of net gaming revenue in 2022, on a par with the year before. Lotteries represent a lower risk of problem gambling than the other categories and are widely supported by the playing segment of the public. A strong lottery portfolio is therefore important for channelling the desire to gamble to a responsibly regulated offering.
Casino games account for 14 per cent of net gaming revenue. This category is more prone to problem gambling than lotteries. The company is constantly working on adjustments to balance responsibility and attractiveness in this category. It is important in relation to the monopoly model that Norsk Tipping is able to channel customers in this category to a regulated and responsible offering with a view to mitigating the negative consequences of the gaming. The authorities’ restrictions on unregulated providers’ activities are helping to ensure that Norsk Tipping’s market shares in this area are increasing.
Sports games saw a decrease of 6 per cent in net gaming revenue from 2021, and this represents the first normal year after major fluctuations due to the pandemic. The regulation is working well and Norsk Tipping’s market shares in the area are increasing. This category also entails a higher risk of problem gambling than lotteries and measures such as Spillepuls will help to reduce adverse consequences.
In general, the ban on marketing games without a licence in Norway has worked well for a long time. Together with the payment prohibition, it helps to make it difficult for unregulated gaming providers to offer games targeted at the Norwegian market, which strongly supports Norsk Tipping’s channelling.
Enforcement of the monopoly model results in Norsk Tipping gaining a larger share of total gaming revenue and an ever more important role in helping to reduce problem gambling in Norway.