Europe NEWS

The Norwegian Ministry of Culture and Equality has unveiled a radical initiative in the fight against gambling problems, earmarking a substantial NOK32 million (£2.43 million) for comprehensive research, prevention, and treatment. With a sharp focus on understanding and mitigating the negative impacts of gambling, this strategic funding is set to pave the way for innovative solutions and evidence-based interventions.

Monopoly operator Norsk Tipping and Allied join forces

This unprecedented funding surge is not just a financial commitment from the Norwegian government but also a collaborative effort involving key stakeholders. Monopoly operator Norsk Tipping spearheads the financing, complemented by contributions from the Lotteries and Foundations Authority, the Media Authority, the Directorate of Health, and the Research Council.

This unified approach reflects the government's commitment to tackling gambling issues comprehensively, utilizing diverse resources for a more effective and nuanced strategy.

Funding allocation for research on gambling harm

In the face of growing concerns about gambling problems, Culture and Equality Minister Lubna Jaffery (in photo above) affirms the success of prior efforts, stating,

"The number of Norwegians with gambling problems has halved since 2019.

This shows that the government's combined efforts are yielding results." Minister Jaffery underscores the effectiveness of Norway's unique sole-law model, incorporating stringent measures such as maximum loss limits, advertising bans against foreign gambling entities, payment intermediary bans, and proactive knowledge enhancement and prevention strategies.

Spotlight on research, prevention and treatment

The awarded funds align with the overarching Action Plan for 2022-2025, which aims to significantly reduce the prevalence of gambling-related issues while fostering a culture of knowledge sharing. This multifaceted plan not only seeks to address existing problems but also places a strong emphasis on prevention and education, envisioning a future where fewer individuals develop gambling-related challenges.

As the Norwegian government continues to invest in proactive measures, this financial injection is poised to fortify the positive trajectory in combating gambling problems and ensuring the well-being of its citizens.

Related topics

In light of recent developments, namely the Corporate Sustainability Reporting Directive (CSRD) at EU level and the voluntary Environmental, Social and Governance (ESG) for the remote gaming sector published by the MGA, SiGMA News discussed the significance of ESG (Environmental, Social, and Governance) compliance within the gaming industry with Reuben Portanier, Partner Advisory & Compliance GTG and former CEO of the MGA, Malta’s gaming regulator.

Portanier emphasised the lack of awareness among clients regarding the impact of ESG and the . He revealed that many clients mistakenly believed they were not subject to ESG regulations, leading to a need for increased awareness.

Addressing the motivation behind companies embracing ESG, SiGMA News asked whether organisations would adopt it as a burden or recognise its business sense. Portanier acknowledged the complexity of this question, suggesting that profit-driven entities might perceive it as a burden, while visionaries within the industry would view it as an investment in the future. Portanier added that the gaming industry has the basis of ESG by due to the highly regulated environment it operates in. He added that, unwittingly or by default, most operators already have several ESG measures in place.

The discussion then shifted to the broader impact of ESG on consumer behaviour. Portanier noted that companies with a forward-thinking strategy consider the long-term effects of their business decisions, anticipating how customers will perceive them in 5-10 years. He cited examples in the cosmetics sector where companies actively promote their environmental and ethical practices, influencing consumers' purchasing decisions.

Asked whether there was genuine value in ESG beyond being a marketing strategy, Portanier asserted that while there might be immediate PR benefits, the long-term value is determined by increased sales. He emphasised the importance of ESG to maximise investments, influencing consumer behaviour and creating a positive image for the company.

The conversation then touched upon the paradox in implementing ESG, where smaller companies (visionaries) may lack the financial means to adopt ESG practices, while larger companies face challenges due to their size. Portanier suggested that larger companies, despite their difficulty in changing, are compelled to do so by legislation, driving a faster pace of change.

The interview concluded with a focus on the gaming sector's perception and the role of ESG in altering it. Portanier highlighted the negative perception of the industry, fuelled by public outcry and political reactions. He argued that ESG provides an opportunity for the gaming sector to demonstrate responsible practices and shift public perception positively.

The discussion emphasised the gaming industry's journey towards ESG compliance, recognising it as not just a regulatory requirement but a strategic move to shape a positive image and foster long-term sustainability.

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The Swedish Trade Association for Online Gambling (BOS) has recently expressed its support for the proposed changes to the Money Laundering Act put forward by the Swedish Ministry of Finance. The changes aim to increase the penalty fees for certain violations of the anti-money laundering (AML) regulations.

Conditional support

The BOS agrees that AML violations are among the most serious offenses in the gambling industry, and that the fines should be comparable to those for breaches of the Gambling Act. However, the BOS also suggests some points to consider when implementing the new sanctions system, such as:

• The quality of the Swedish Gambling Authority’s sanction decisions, which should be based on solid evidence and not be subject to significant changes by the courts.
• The proportionality of the sanction fees, which should reflect the relatively marginal impact of the gambling sector on the financial system's stability and credibility compared to other financial actors.
• The calculation of the sanction fees, which should be based on the gross gaming revenue (GGR) of the gambling companies, not their total turnover, as the latter includes money that belongs to the gambling consumers.

The BOS believes that these points are important to ensure a fair and effective enforcement of the AML regulations, and to send a clear signal to the gambling companies that comply with the rules. The changes to the law are expected to come into effect from April, 2024.

The Swedish Trade Association for Online Gambling (BOS) is an organization that represents the interests of licensed online gambling operators in Sweden.

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