Norway faces pressure to liberalise gambling laws

Norway’s longstanding state-run gambling monopoly is once again under the spotlight, with increasing calls for a fundamental overhaul of the regulatory framework. With the upcoming general elections scheduled for September 8, 2025, the Progress Party (Fremskrittspartiet) is intensifying its campaign to dismantle the existing monopoly and open the sector to licensed private operators.

This initiative was re-emphasised during a conference hosted in May by the Norwegian Online Gaming Association (Norsk Bransjeforening for Onlinespill), a key industry body representing stakeholders in the digital gambling space. At the event, Silje Hjemdal, a Member of Parliament and a representative on the Storting’s family and culture committee, reiterated her party’s position advocating for a shift towards a liberalised gambling model.

Political context and historical positioning

The Progress Party has long supported gambling reform in Norway, consistently incorporating liberalisation into its election manifestos, including the 2021 platform. Their stance aligns with a broader Scandinavian trend toward modernising gambling laws, as seen in Denmark and Sweden. Notably, Finland—previously a fellow monopoly state—has recently committed to transitioning to a licence-based system by 2026, further isolating Norway in its adherence to a monopolistic model.

“The developments in Finland and Denmark are incredibly compelling,” Hjemdal said during the conference. “I haven’t landed on a concrete model yet, but I would gladly take a study trip to Denmark to learn from their approach.”

Her statements suggest a measured yet deliberate openness to international best practices, particularly Denmark’s regulatory architecture, which is widely regarded as one of the most successful in Europe in terms of balancing consumer protection with market freedom.

Critique of the current monopoly system

Norway’s gambling system is currently governed by two state-run entities: Norsk Tipping for most gambling products and Norsk Rikstoto for horse race betting. These entities operate under a monopoly granted by law, with the primary rationale being the protection of consumers and the prevention of gambling-related harm.

However, critics argue that this model is no longer fit for purpose, particularly in an increasingly digital and cross-border gambling environment. According to Hjemdal, large volumes of Norwegian gambling expenditure continue to leak abroad via unlicensed platforms, which operate outside the reach of national regulation.

“We are one of the very few countries left using this outdated model,” she said. “There’s a clear need for smarter regulation—under the current system, Norwegian sports and cultural initiatives are losing out, as revenues flow offshore and remain untaxed.”

This financial leakage not only undermines national revenue streams but also compromises responsible gambling efforts, as unlicensed operators are not subject to Norwegian consumer protection laws or oversight.

Growing cross-party consensus

The Progress Party is no longer the sole political advocate for change. In a significant shift, the Conservative Party (Høyre), Norway’s second-largest political party, incorporated a similar proposal into its 2023 manifesto. The inclusion of gambling reform in its platform has signalled a growing consensus across the political spectrum.

Carl Fredrik Stenstrøm, Secretary-General of the Norwegian Online Gaming Association, has described the current political climate as “more favourable than ever” for legislative change. Speaking in an earlier interview, he suggested that reform could realistically be implemented by 2028 if cross-party support remains consistent.

“With both the Progress Party and the Conservatives backing liberalisation, and broader awareness of the system’s flaws growing, we may soon reach a tipping point,” Stenstrøm said.

Lessons from neighbouring countries

The Scandinavian region provides a useful comparative context for Norway. Denmark liberalised its gambling market in 2012, introducing a licensing regime for online gambling. The country’s model has since been lauded for its efficacy in channeling players to licensed operators, ensuring both consumer safety and tax compliance.

Sweden followed suit in 2019, also replacing its monopoly system with a licensing framework. While the Swedish transition faced some early challenges, such as enforcement gaps and concerns over bonus promotions, regulators have continually fine-tuned the system to better address emerging risks.

Finland, which shared Norway’s monopoly model until recently, formally announced in 2023 that it would dismantle the system and introduce competitive licensing by 2026. The Finnish government cited the ineffectiveness of the monopoly in preventing offshore gambling and the potential public benefits of a regulated open market.

Legal and regulatory implications

Any move to liberalise Norway’s gambling sector would necessitate substantial legislative reform. Norway’s current framework is underpinned by the Gambling Act, the Lottery Act, and the Totalisator Act. These laws would likely need to be repealed or significantly amended to accommodate a licensing regime.

In addition to parliamentary approval, regulatory agencies such as Lotteritilsynet (the Norwegian Gaming Authority) would need to be restructured or re-mandated to manage licensing, supervision, and enforcement responsibilities. This may include the development of new compliance mechanisms, player protection frameworks, and anti-money laundering protocols.

Legal experts caution that such a transition must be meticulously planned to avoid market fragmentation or unintended consequences, such as over-saturation, under-regulation, or an increase in gambling addiction. Clear delineation of tax obligations, advertising guidelines, and responsible gambling initiatives would be vital to ensure a stable and sustainable market environment.

Industry perspectives and economic potential

Supporters of liberalisation argue that a regulated open market could generate significant tax revenues for Norway while providing enhanced protection for players. According to industry estimates, Norwegians wager billions of kroner annually on offshore sites—money that could otherwise be taxed and reinvested into public services, sports funding, and mental health programmes.

Additionally, proponents claim that a competitive market would encourage innovation and better user experiences, with licensed operators incentivised to meet high standards of safety, transparency, and customer service. The emergence of newer technologies such as blockchain, AI-based responsible gambling tools, and real-time transaction monitoring could further reinforce consumer protections.

Critics, however, warn of the potential for increased gambling participation and related harms. They advocate for a cautious and evidence-based approach, including robust public health impact assessments prior to any legislative overhaul.

Timeline and electoral significance

With the 2025 general elections approaching, the topic of gambling reform may emerge as a key electoral issue. While it is unlikely to dominate the campaign narrative, it could influence voter behaviour in key demographics, particularly younger voters and digital-native populations who are more likely to engage with offshore platforms.

Should the Progress Party and Conservative Party increase their parliamentary representation, the likelihood of legislative reform will rise substantially. Political analysts believe a coalition with aligned interests could fast-track the process, potentially beginning consultations and drafting legislation as early as 2026.

Conclusion

Norway’s state monopoly on gambling has long been justified as a tool for consumer protection and harm minimisation. Yet mounting evidence suggests that the model may no longer be achieving its intended goals in a borderless digital environment. As other Nordic nations shift toward liberalised, regulated frameworks, pressure is increasing on Norwegian lawmakers to adapt.

While significant legal and regulatory hurdles remain, the growing political consensus, combined with public support and regional trends, suggests that change is increasingly likely. If current momentum continues, Norway may well begin its transition toward a licensed gambling market by the end of this decade.

FAQs

What is the current gambling model in Norway?
Norway operates a state-run monopoly system, with Norsk Tipping and Norsk Rikstoto as the sole legal operators for most forms of gambling.

Why is the Progress Party advocating for reform?
The Progress Party believes the current system is outdated and ineffective, causing revenue to flow offshore and reducing funds for sports and cultural programmes.

What alternative models are being considered?
While no model has been officially endorsed, Denmark’s licensing framework is often cited as a potential example for Norway to follow.

Is gambling reform supported by other political parties?
Yes, the Conservative Party also supports liberalisation and included the proposal in its 2023 manifesto.

How does the monopoly system affect consumers?
Consumers may turn to unlicensed offshore sites that lack Norwegian protections, exposing them to higher risks and lower regulatory standards.

What changes are being proposed?
Reforms would likely involve introducing a licensing system for online gambling, repealing or amending existing legislation, and overhauling regulatory bodies.

What is the timeline for possible reform?
If supported by a future coalition, legislative work could begin around 2026, with liberalisation potentially taking effect by 2028.

How does Norway compare to its neighbours?
Denmark and Sweden have already liberalised their gambling markets. Finland is in the process of doing so, leaving Norway increasingly isolated.

What are the economic implications of liberalisation?
A regulated market could recapture offshore gambling revenues through taxation and improve consumer protections while supporting domestic initiatives.

What are the risks of reform?
Potential risks include increased gambling addiction, market over-saturation, and regulatory challenges, all of which would require careful management.