Norway’s national lottery operator, Norsk Tipping, announced it will no longer promote its sports betting services on TV. This decision comes soon after the country’s major broadcasters vowed to stop promoting unlicensed operators.
Norsk Tipping to Reduce Ads
Earlier this year, the Norwegian Media Authority, the country’s media regulator, found out that the five biggest local TV operators are broadcasting ads for unlicensed gaming companies. As per the Broadcasting Act of 2021, the authority ordered TV channels to stop promoting illegal products. These orders applied to Discovery Network, Eurosport Norway, FEM, MAX and VOX, which were all found guilty of breaching Norway’s advertisement regulations. The said TV channels eventually complied, thus reducing locals’ exposure to illegal gambling content.
Now that the major broadcasters have stopped promoting such offerings, Norsk Tipping pulled its commercials down from TV. The lottery operator believes that there is no need to over-promote gaming content now that there is no competition from the black market.
In addition, the lottery operator plans to scale down its overall marketing campaigns and save money. For example, the monopoly plans to stop promoting sports betting offerings via SMS.
The Operator Will Remain Competitive
Tonje Sagstuen, communications director at Norsk Tipping, said there is no longer a need for the operator to maintain such a high level of visibility. Now that unlicensed operators will no longer promote their products on the biggest TV channels, Norsk Tipping will be able to reallocate its resources.
Norsk Tipping will not stop advertising entirely but will not advertise more than necessary, Sagstuen explained. The operator will keep enough ads to incentivize people to pick the legal offer but will not flood customers with adverts.
Sagstuen also noted that the problem with unlicensed operators is that many of them promote highly-addictive verticals such as online casinos and online sports betting. Seeing the harm those verticals cause, Norsk Tipping plans to reduce its focus on such games and instead promote less dangerous products. Sagstuen noted that lottery games continue to enjoy a lot of popularity while being far less addictive than other offerings.
Sagstuen warned that unlicensed operators will likely seek new ways to promote their products now that they have been barred from TV. He said that the black market may double down on advertising through social media, podcasts and email. Because of this, Norsk Tipping must remain competitive and ready to face its unlicensed competitors.