Digital disruption and gambling monopolies : Regulatory Evolution in the Nordic Trio - Balancing Innovation, Taxation, and Welfare

Abstract

The Nordic gambling market is undergoing significant regulatory transformation, driven by the digitalization of gambling services and increasing pressure to balance public health concerns with sustainable tax revenue generation. This thesis examines and compares three Nordic countries — Norway, Finland, and Sweden — each of which at the time of this research operated under a distinct regulatory model: full monopoly, partial liberalization, and a multilicence system, respectively.

The primary research objective is to assess which regulatory framework is better equipped to address two key state-level priorities in the digital era: (A) the prevention of gambling-related harm and protection of public health, and (B) the optimization of state revenue collection while reducing market leakage to unlicensed offshore operators.

Using a comparative legal and policy analysis and expert interviews, this thesis explores the strengths, weaknesses, and socio-economic outcomes of the three regulatory regimes. The research pays close attention to Sweden’s transition from monopoly to licensing in 2019, the evolving reforms underway in Finland, and Norway’s firm adherence to a monopolistic model.

The findings aim to inform ongoing regulatory debates, providing evidence-based insights on the effectiveness, obsolescence, or potential hybridization of monopoly models in the face of digital disruption. Policy recommendations are proposed for Nordic regulators considering reform, with a focus on balancing innovation, responsible gambling frameworks, and national fiscal interests.