Norway wealth fund to probe gambling shareholdings in 2025

The Norway sovereign wealth fund, the world’s largest, will probe its gambling and cryptocurrency shareholdings over ethics concerns in 2025.

The ethics watchdog of the $1.8tn Government Pension Fund of Norway will investigate gambling and cryptocurrency businesses for potential breaches, according to a document seen by Reuters.

The document reportedly said: “The Council on Ethics in 2025 will take a closer look at companies involved in cryptocurrencies and gambling/casino, where there is a significant risk of money laundering.”

The Council of Ethics will investigate the businesses are in compliance with ethics guidelines set by Norway’s parliament.

If the council rules this not to be the case, the body can recommend to the Central Bank, which operates the fund, that it divests its shareholdings or else place them on a public watch list.

The watchdog is also empowered to request the fund’s management engage directly with the company at issue.

Companies that have been subject to disinvestment are not announced until the shareholding has been sold.

While the bank in normal circumstances follows the council’s advice, it does not always do so.

The Pension Fund of Norway is a shareholder in many prominent online gambling businesses including Evolution, MGM Resorts and Flutter Entertainment.

The 2.13% and 2.30% Flutter and Evolution stakes are worth $691.8m and $506.9m respectively.

The organisation also holds stock in French lottery giant FDJ, US regional casino operator Boyd Gaming, ESPN Bet-operator Penn Entertainment and REIT Gaming and Leisure Properties Inc, among many others.

Most listed gambling companies in 2024 have robust anti-money laundering and counter terrorist financing controls due to the heavily regulated nature of their sector.

The probe comes as some institutional investors reevaluate their relationship with the gambling shares due to an increased emphasis on Environmental, Social and Governance (ESG) concerns.

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