Gambling has been a part of Norwegian culture for a long time. Loki’s Wager in Norse mythology explains how a logical error may invalidate an argument by illustrating how the trickster god Loki won a legendary wager. The story reminded me of another myth regarding internet gambling in Norway: that the country’s state-owned monopoly is vital for greater regulation.
To justify its monopoly, Norway claims that the state, rather than private enterprises, are better equipped to regulate online gambling and safeguard players from the dangers of excessive gaming. As with Loki’s Wager, the premise of this argument is flawed: it’s the country’s rules and consumer safeguards, not the monopoly, that governs and protects online gamblers.
For online gambling, which is heavily consumer-driven like many other digital industries, a monopoly is a bad idea since it restricts options. Although taught in other parts of Europe, this concept holds true in Norway as well. Its customers are internet-savvy, price-conscious, and always looking for new and better options — all of which can be found on the internet.
There is less regulation over internet gambling in Norway because of the country’s monopoly, not more.
Since the monopoly offers a limited selection and high pricing, it’s no surprise that Norwegians are turning to overseas websites for their gaming needs. As a result, the government has lost control of over half of its online gambling sector. That’s the reason why there is missing out around 2 billion NOK in extra tax revenues each year, and many of its players are not protected by Norwegian legislation. As far as online gambling and player protection are concerned, this is a big issue. There is no method for the state to monitor or safeguard Norwegian citizens who use overseas websites.
Increase In Online Gambling
Internet use has skyrocketed in the last several decades. Many offline activities, such as gambling, have been partially replaced by online equivalents, which is likely both a cause and a result of this rise. Gambling via the internet, on the other hand, has the reputation of being more dangerously addictive than traditional forms of gambling because of the ease of access, anonymity, and speed at which players may place bets. However, as time goes by online gambling in Norway becomes more popular. One of the main reasons behind this is the bonus system that is offered by online casinos.
For example, some of the casinos allow gamblers to claim free spins, also they have welcome bonuses, in order to attract new customers and so forth. Moreover, online gambling has the advantage of being less expensive to run, which may lead to larger payout ratios and, in turn, an increase in problem gambling. An internet gambler has an 8.8–12.6 percent greater chance of becoming a problem gambler than someone who plays just 10% of their games online, according to German research.
Some researchers have examined how internet gamblers access their accounts. Mobile phones were the most popular form of online gambling among treatment-seeking gamblers, according to research. There hasn’t been any prior research on whether or whether the prevalence rates of internet gambling through mobile phones have altered over time in keeping with advancements in smartphone technology.
In the great majority of research, internet gamblers report higher gambling issues than those who play in person. When the number of gambling activities was taken into account, research indicated an opposite association between internet gambling and gambling issues. As a result, it is advised that researchers take this into account when determining whether or not internet gambling is linked to gambling addiction. Online gamblers are more likely than offline gamblers to have issues with their gambling, but there is also evidence that online gamblers are more likely to be men and younger than their offline counterparts.
How Does A Gambling Work In Norway?
Online gambling is totally legal in Norway, but only two state-owned organizations, Norsk Rikstoto and Norsk Tipping allow players to engage. A complete gaming license from the Gaming Authority is also denied to commercial operators.
Norway’s gaming authority has asked banks to restrict any cash coming to or from unlawful internet casinos in order to guarantee that those severe prohibitions are followed.
NGA compiled a list of “unauthorized” casinos on April 24, 2020, and lobbied banks to refuse cash from these establishments. It was determined that banks must follow the new legislation even when they received a kickback from the casinos in the issue.
The prohibitions on internet casino advertising strengthened this new rule. Norwegian casinos have been banned from advertising their services through television or the internet to clients inside their own borders. Internet service providers in Norway are obligated to ban these adverts in order to safeguard gamers who may be in danger.
In 2020, there were a lot of developments for Norway and online casino payment options. Paysafecard, Skrill, Neteller, and Rapid Transfer were all eliminated by Norwegian market operators.
There will be a NOK5,000 loss ceiling for high-risk games starting in September 2021, too.
Gamblers must abide by the rules in order for the government to maintain control over gaming activity in their jurisdiction.
All gaming winnings are taxed as a result of this. This implies that not only do gambling operators have to pay taxes on their earnings, but so do gamblers as well.
Legally, gains from anywhere in the world must be reported and taxed. Even if your gains came from a foreign gambling site, declaring them and paying the appropriate taxes is the best way to stay on the right side of the law.