The Norwegian Gaming Authority’s provisional estimate of the regulated gaming market in Norway in 2022 was that it was worth NOK 11.7 billion, an increase of NOK 665 million compared with 2021.
Measured in terms of net revenue – after all prizes have been paid out – the regulated market is estimated to account for 88 per cent of all gaming in Norway, an increase of 2 percentage points from 2021.
Norsk Tipping’s net revenue increased by around NOK 350 million, from NOK 8.65 billion to NOK 9 billion, and it has a market share of around 67 per cent, which is on a par with 2021.
Norsk Rikstoto’s revenue from horseracing games was relatively stable.
In the private market, which includes bingo, private lotteries and gaming on ships, net revenue increased by NOK 335 million from NOK 1.4 billion in 2021 to NOK 1.75 billion in 2022, an increase of 24 per cent. The reopening of in-person gaming in both bingo halls and on ships was a contributory factor to the growth in revenue.
Norsk Tipping estimates that the illegal market decreased from NOK 1.8 billion in 2021 to NOK 1.6 billion in 2022. The illegal market accounts for around 12 per cent of all gaming in Norway, a decrease from 14 per cent in 2021. Norsk Tipping’s estimate is based on a combination of the figures available and our knowledge and experience.
For 2022, the Norwegian Gaming Authority estimates that the illegal market amounts to between NOK 1.6 and 2.0 billion.
Lotteries are growing the most
With more than two million active customers, lotteries and soft instants remain the most popular games in the Norwegian market. In total, these games grew by NOK 300 million in Norsk Tipping from 2021 to 2022. Overall, lotteries account for more than 50 per cent of all gaming revenue in the market.
A strong lottery portfolio is key to the company’s overall channelling power and ensures a focus on low risk games in the Norwegian market.
Further reduction in gaming advertising
The entry into force of the new Broadcasting Act reduced the gross media spend by 40 per cent from 2020 to 2021. The gross media spend decreased by a further 20 per cent in 2022. Between 2020 and 2022, the exposure of illegal gambling providers’ marketing on TV has been reduced by approximately 85 per cent. In the same period, Norsk Tipping’s TV exposure has been reduced by 55 per cent.
The population-based survey from 2019 pointed to the scope of gaming advertising as a potential contributory factor in increased problem and risky gambling. Seeing a substantial reduction in the scope of gaming advertising is, therefore, very pleasing. It is particularly satisfying that casino commercials for the illegal market are now far less visible on Norwegian TV screens. Casino games are, and have been, a root cause of problem gambling for years and cannot be marketed in Norway.
New Gaming Act strengthening consumer protections
A new Gaming Act came into force on 1.1.2023. The Act is the result of the White Paper ‘Everything to Gain’ from 2016 and means that other gaming providers in the regulated market are now subject to many of the same marketing requirements as Norsk Tipping and Norsk Rikstoto. Read more in the chapter on policy and regulation.
DNS blocking is another point in the White Paper that needs following up and the proposal was subject to a consultation process in autumn 2021. A number of countries have already introduced DNS blocking, including Denmark, where in 2022 a record number of websites were DNS blocked. In total, more than two hundred websites that have illegally targeted their gaming offerings at the Danish market are now blocked by the authorities.
A new consultation process on the proposal regarding DNS blocking will be carried out in spring 2023.