The gaming market

Revenue in the gaming market fell slightly in 2021, although Norsk Tipping’s share of the total market appears to have increased somewhat.

No official figures are available, but Norsk Tipping estimates that the regulated gaming market in Norway was worth NOK 11.1 billion, an increase of NOK 200 million compared with 2020.

Measured in terms of net revenue – after all prizes have been paid out – the regulated market is estimated to account for 86 per cent of all gaming in Norway.

Norsk Tipping’s net revenue increased by around NOK 150 million from NOK 8.5 billion to NOK 8.65 billion. This equates to a market share of about 67 per cent, which represents a slight increase compared with 2020. In the rest of the regulated market, it is estimated that Norsk Rikstoto’s horse racing games and the bingo market saw a slight decline. The stronger responsibility framework for horse racing games and the closure of bingo halls during the Covid-19 pandemic were contributing factors to this decline.

It is estimated that the unregulated market also declined slightly in terms of both revenue and market share and now accounts for around 14 per cent of all gaming in Norway.

Norsk Tipping’s estimate is based on a combination of the figures available and our knowledge and experience. The Norwegian Gambling and Foundation Authority’s official figures for 2021 have not been published yet, although they are expected to be released in the first half of the year.

The population-based survey and statistics from the Helpline for gaming addicts show that online casino games cause the most gaming problems in both Norway and Europe. In December 2020, Norsk Tipping reduced the monthly maximum loss limit for online casino games from NOK 10,000 to NOK 7,500. The feedback was positive. In 2021, the company wanted to curb the revenue from online casino games even more and the maximum loss limit were reduced to NOK 5,000 per month. The loss limit for online casino games has thus been halved compared with spring 2020.

Norsk Tipping estimates that the revenue will decrease by up to NOK 250 million a year following the downwards adjustment.

Even with the halving of the loss limit, the revenue from casino and high risk games was on a par with 2020. The same period saw customer growth of 6 per cent, without this increasing revenue. Norsk Tipping is actively working to help reduce the number of online casino customers in the Norwegian gaming market.

Norsk Tipping’s sports betting also made a strong contribution to increased channelling in 2021. Compared with 2020, customer numbers and revenue grew by 20 per cent and 30 per cent, respectively. The company renewed its Oddsen offering, which has helped channel both customers and revenue away from unregulated gaming providers back to the regulated market. At the same time, we are seeing an increased effect from government measures, such as the prohibition on money transfers (in Norwegian).

Lotteries and scratch games remain the most popular games in the Norwegian market, with more than 2 million active customers. Overall, lotteries account for more than 50 per cent of all gaming revenue in the market. With 1.9 million customers, Lotto is the most attractive game in the category and in Norway. A strong lottery portfolio is key to the company’s overall channelling power and secures the position of low risk games in the regulated market.

The new Broadcasting Act came into force on 1.1.2021. Gross media spends have decreased by 40 per cent compared with 2020. The decrease was greatest for illegal advertising, although the regulated gaming companies also saw a decrease.

The stricter marketing guidelines (In Norwegian) have resulted in changes to both the content and scope of regulated gaming companies’ advertising.

The population-based survey from 2019 pointed to the scope of gaming advertising as one of the reasons for increased problem and risky gaming.

The work on the new Gaming Act and its content continued in 2021. Read more about it here.