ATTRACTIVE AND RESPONSIBLE GAMING

Norsk Tipping has a three-fold function within Norwegian society: Our aim is to offer attractive gaming opportunities and ensure that gaming takes place within a responsible framework. All the profits we generate shall be channelled into good causes.

Attractive
In order to attract players to participate in regulated gaming, we must inspire them and create exciting gaming experiences that are fun and entertaining. It is not enough to expect players to choose Norsk Tipping purely on the basis of profits for good causes. We are working continuously to upgrade our games and attract new customers.  

Responsible gaming
Some people see a contradiction in offering gaming opportunities while at the same time working to counteract gaming's undesirable consequences. But this is the very reason we exist! The games we offer are subject to strict rules and statutory regulation, and our framework for responsible gaming includes everything from game development, information and the monitoring of players.

Profits
In 2016, our customers generated profits of NOK 4.85 billion that will be distributed to good causes all over Norway. We focus on efficient operations to ensure that as much money as possible is ploughed back into our communities. However, our pursuit of profits is never more important than our role in working to prevent the financial and social problems faced by vulnerable players.

A GOOD YEAR

2016 was a very good year for Norsk Tipping. As well as record results, the company appointed a new CEO, the Lotto game celebrated its 30th birthday, and the Government gaming policy White Paper “Alt å vinne – Ein ansvarlig og aktiv pengespillpolitikk” (Everything to gain – a responsible and proactive gaming policy) concluded that the current exclusive rights model should remain in place. Here are some of the highlights.

On 3 October, Åsne Havnelid took up her post as our new CEO, succeeding Torbjørn Almlid. Havnelid arrived from her position as General Secretary of the Norwegian Red Cross. Almlid has headed Norsk Tipping since 2009.


Total loss limits
On Sunday 2 October, Norsk Tipping introduced total loss limits for all its games. The limits were introduced both to boost our work to prevent gaming-related problems and to simplify the limit-setting regime for our customers. The maximum limit is set at NOK 20,000. This is a loss limit, in that it represents the maximum a player can lose in any one month.

Grassroots record
About 30,000 Norwegian sports clubs and associations were able to celebrate new records set by the Grasrotandelen (Grassroots) fund in 2016. No less than NOK 447 million were distributed to the voluntary sector all across the country. Since its launch in 2009, the Grasrotandelen fund has given players the opportunity to donate five per cent of their stakes to a club or association of their choice. This is an enormous voluntary effort that in 2016 attracted a total of one million participants all across Norway, and there still remain almost a million players who have yet to select a grassroots recipient. 

 

 

THE “OTHER” CALL FROM HAMAR

Everyone in Norway knows the expression “the call from Hamar”. This is how lucky Norwegians hear that their dreams have come true after winning the lottery. “Congratulations – you are now a Lotto millionaire!” But now there is also the “other” call from Hamar. This is made to players who have lost relatively large sums on Norsk Tipping’s games during the previous twelve months and/or who play in such a way that their gaming patterns may represent a risk.

In 2015, the company implemented a limited pilot project where we tested a set of follow-up telephone conversations with players who had incurred high losses or who engaged in risky gaming behaviour. The results were positive in that the conversations reduced risky behaviour, and the players involved reported that they were positive to the initiative. So in 2016 we advanced to phase 2, in which two of our customer service employees are now working full time to monitor customer gaming patterns.

Purpose of the calls
The aim of the calls is to make customers more aware of their gaming behaviour and the money they spend, and to suggest that they might consider making changes. Customers who so wish will be offered help and guidance.


Trine Vannzell and Kristin Edvardsen Måsø have the job of contacting players considered to be vulnerable.
“We ask some straightforward questions that make the customer aware of how much money he or she has spent. Most of those we talk to are surprised to find out the amounts involved”, says Kristin.

Feedback from our customers: “Useful”
Our customers feel that the calls are useful. All calls include the question “How do you feel about Norsk Tipping making calls like this to its customers?” The vast majority are positive to Norsk Tipping contacting its players in this way – ninety-five per cent think that the calls are a good idea.
Specific initiatives are agreed with 60 per cent of players called. Usually this involves the customer in question having his or her stakes limit lowered. Others opt to take a break from gaming or to block their access to gaming entirely. Some receive guidance about obtaining help going forward (help and treatment services).

Observing the impact over time
An important aspect of this project is to assess the impact such calls have over time. Do the calls help customers who want to change their gaming behaviour achieve their goals? And are the changes permanent? For this reason, Norsk Tipping monitors the impact over time, and there is a lot of interest for this project among various research communities.

VITAL VOLUNTARY SECTOR

Norwegians love to be out in the great outdoors. According to surveys, Norwegians enjoy their outdoor recreation more than any other country. It is only natural, with the world’s longest coastline, that boating at sea is also important to us as a source of recreation.

Eighteen per cent of the profits from Norsk Tipping’s games go to socially beneficial and humanitarian causes. In 2016, a total of NOK 731 million was distributed to voluntary organisations.
For generations, the Norwegian Trekking Association (DNT) has inspired people and organised recreational activities everywhere in Norway from the lowland forests to the highest mountains. Organisations such as the Norwegian Red Cross, Norwegian People's Aid and the Norwegian Sea Rescue Society are always at the ready if your trip doesn’t go as planned.

The Norwegian Air Ambulance Foundation and the Norwegian Life-Saving Federation are also key resources looking out for our safety. Without profits from gaming, these organisations would not be the reliable fixtures we depend on as we enjoy our outdoor recreation.

For everyone's benefit
For many years, profits from gaming that go to the DNT have funded the way-marking of hiking paths and construction of 250 tourist cabins. In total in 2016, the DNT received NOK 18 million in the form of sports’ funds ear-marked for cabins and the way-marking of hiking and skiing trails. The organisation also received almost NOK 8.5 million in unrestricted revenues, and its youth organisation another NOK 8.2 million.
In 2016, the Norwegian Red Cross received NOK 215 million. Among other things, these unrestricted revenues create opportunities to employ people to coordinate and administrate voluntary work that in turn consolidates the organisation’s rescue services.


The Norwegian Sea Rescue Society is also a voluntary organisation that relies on funding to provide us with rescue services at sea. In 2016 the organisation received something over NOK 132 million. During the year it saved 45 lives, provided assistance to 6,447 boats in distress, and ran sea safety courses for 52,000 children and young people.
Norwegian People's Aid invested NOK 16 million of the funds it received in voluntary work, first aid and rescue services, as well as integration activities aimed at involving young people. The Norwegian Air Ambulance Foundation received NOK 27 million in support of its vital life-saving services.

THE DIGITAL CUSTOMER EXPERIENCE

Fifty per cent of all Norwegians over 18 play a Norsk Tipping game at least once a year, and the number opting to use digital distribution channels is rising. Gaming on both mobile phones and PCs is increasing. Personalised communication is increasingly becoming the best way of keeping in close touch with our customers.

Mobile gaming increased the most. In 2016, Norsk Tipping enjoyed growth in sales of 17 per cent compared with the previous year. According to Thomas Løkting, Norsk Tipping’s Head of Digital Sales, lap- and desktop PC gaming also displayed a modest increase. “Our target for 2017 is that 48.5 per cent of players will be gaming via digital distribution channels. In 2016, we recorded that 60 per cent of new players used digital devices”, he says.


“In 2016 Norsk Tipping decided to increase its investment in personalised communication with its customers, using SMS and newsletters with content reflecting the interests and gaming patterns of the players in question. Of course, customers must give their consent to receiving SMS texts and information. We’re seeing a strong increase in the number of players who want personalised communication”, says Løkting.

Customer journey mapping provide insights
Customer Relations Manager Knut Are Nordheim describes 2016 as a great year for Norsk Tipping’s customers. “The company organised cross-disciplinary and inter-departmental teams in a bid to create the best possible customer experience. “Our customer journey mapping has provided us with deep insights into how we can improve, and we will be measuring this factor during 2017”, says Nordheim, who concludes that at Norsk Tipping it’s the customer who calls the shots. 

Our ambition

Since 1948, Norsk Tipping has been a vital source of funding for the Norwegian voluntary sector. Here, CEO Åsne Havnelid provides some insights into how Norsk Tipping’s profits benefit the wider community.

CEO

Value generation

 

Our everyday

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Players in a digital world

Gaming is well suited to digital distribution channels. More and more contact with our customers is digital. With more than 900,000 digital customers, Norsk Tipping has one of Norway’s largest online shops. But even though digital sales are on the rise, the majority of our customers still play at the sales agent.

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Learning more about our customers

All gaming that takes place via Norsk Tipping is registered, except for the Flax-lodd scratch card game. Information we obtain about our players’ behaviour helps us to develop even better gaming experiences for our customers.

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Increasing competition

The number of companies in the unregulated gaming sector is increasing all the time. Moreover, the well-known unregulated companies are expanding their game portfolios and boosting their advertising. In 2016, the unregulated sector accounted for 90 per cent of gaming advertising on Norwegian television.

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Gaming as entertainment

The increasing pace of modern life also affects the way we approach gaming. The distinctions between gaming and entertainment are gradually fading, and young people welcome the social opportunities offered by some games.

Norsk Tipping has two ambitions as we approach 2020:

1. To excite a new generation

2. To play an even more important role in the community

Upgrade our existing game portfolio

At a crossroads

In order to meet increasing competition and continue to generate profits for good causes, we intend to:

Generate exciting customer experiences in a digital world

Achieve prominent and robust status as a key player in Norwegian society

Boost our organisational efficiency and change competence

Use ground-breaking innovation to generate new business opportunities

Competition in the gaming market is on the increase.

The graph illustrates trends in net sales for the regulated and unregulated gaming sectors in Norway.

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