A report by Oslo Economics weighed the pros and cons of Norway’s gaming monopoly, served by state-owned incumbents Norsk Tipping and Rikstoto, and asked if a free market approach would be more beneficial.
According to SBC News, the Norwegian non-governmental agency investigated the potential “risk of transition” for stakeholders if Norway replaced its “exclusive-rights model” for an “open licensing framework” preferred by private enterprises.
The report dispelled a number of “assumptions” made by previous market studies, which the agency said were based on “unrealistic assessments” of the Norwegian marketplace.
Oslo Economics contends that the tax benefits of an open market were overestimated by previous studies which have neglected to consider a number of key variables including licensing criteria, games allowed by the government and foreign operators reaction to a new model.
“If these variables, and a few others, are taken into account a license model may give a decline in the tax income of as much as 1,3 billion (NOK) instead of a rise,” the report read.
In addition, Oslo Economics rejected the presumption that the government will fail to curb illegal gambling by foreign operators should it proceed with more restrictive measures. It said: “Previous reports assumes that the government will not succeed in their efforts, while we assume they will.”
On the issue of problem gambling, the Oslo Economics report said licensing provisions and criteria would be key factors if the Norwegian gaming industry moved from a lotto-games market to a full casino market. Increasing the size of the marketplace would lead to an increase in gambling addiction triggers, the report stated.
