The operator of the Norwegian National Lottery, Tip Norsk, announced that it will no longer promote its sports betting services on television. The move comes shortly after the country’s major broadcasters pledged to stop promoting unlicensed operators.
Norsk is leaning towards reducing ads
Earlier this year, the Norwegian Media Authority, the country’s media regulator, discovered that the five biggest local TV operators were showing adverts for unlicensed gaming companies. Under the Broadcasting Act 2021, the authority ordered TV stations to stop promoting illegal products. These orders applied to Discovery Network, Eurosport Norway, FEM, MAX and VOX, all of which were found guilty of breaching Norwegian advertising regulations. Said TV stations eventually complied, reducing residents’ exposure to illegal gambling content.
Now that major broadcasters have stopped promoting such deals, Norsk Tipping has pulled its adverts from TV. The lottery operator believes there is no longer a need to over-promote gambling content now that there is no more black market competition.
Additionally, the lottery operator plans to reduce its overall marketing campaigns and save money. For example, the monopoly plans to no longer promote sports betting offers via SMS.
The operator will remain competitive
Tonje Sagstuen, director of communications at Norsk Tipping, said it was no longer necessary for the operator to maintain such a high level of visibility. Now that unlicensed operators will no longer be promoting their products on the biggest TV channels, Norsk Tipping will be able to reallocate its resources.
Norsk Tipping will not stop advertising altogether but will not advertise more than necessary, Sagstuen explained. The operator will maintain enough advertisements to entice people to choose the legal offer, but will not inundate customers with advertisements.
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 damage caused by these verticals, Norsk Tipping plans to focus less on these games and promote less dangerous products instead. Sagstuen noted that lottery games continue to enjoy great popularity while being far less addictive than other offerings.
Sagstuen warned that unlicensed operators will likely look for new ways to promote their products now that they have been barred from television. He said the black market could double advertising through social media, podcasts and email. For this reason, Norsk Tipping needs to stay competitive and ready to take on its unlicensed competitors.