Norsk Tipping Faces NOK36m Fine Over Self-Exclusion Failure
Norwegian state-controlled gambling operator Norsk Tipping is facing a proposed NOK36 million (€3.1 million) fine from the national gambling regulator, Lotteritilsynet, after a technical failure prevented Apple users from accessing the self-exclusion tool in its iOS app. The issue, caused by an iOS update on January 16, 2024, went undetected until May 2024, when a customer reported being unable to activate the exclusion feature. Norsk Tipping fixed the problem within two days of discovering it and reported the issue to Lotteritilsynet in June, providing all relevant documentation.
Regulatory Findings and Response
Lotteritilsynet considers the failure a serious breach of Norway’s Gambling Act, which mandates that licensed operators must allow players to self-exclude at any time. The regulator argues that Norsk Tipping should have had systems in place to detect and correct such errors immediately.
Tore Bell, a department director at Lotteritilsynet, stated: “The fact that the exclusion has not worked is a clear violation of the law. Both the occurrence of the error and the failure to detect it earlier indicate serious deficiencies in Norsk Tipping’s systems and routines.”
Although alternative exclusion methods were available via Norsk Tipping’s website, customer service, gaming terminals, and unaffected devices, Lotteritilsynet deemed these alternatives insufficient. The regulator emphasized that self-exclusion must be seamless across all platforms, ensuring immediate access for players who need to restrict their gambling activities.
Impact on At-Risk Gamblers
While the exact number of affected players is unknown, Lotteritilsynet identified a decline in self-exclusion requests during the period in question. In February to April 2023, an average of 180 people self-excluded per month, compared to just 120 per month in the same period of 2024. Based on long-term data, the regulator estimates that between 60 and 240 players may have been unable to self-exclude due to the error.
Lotteritilsynet described the failure as “disturbing” and criticized Norsk Tipping for lacking contingency plans. It noted that “it is a much higher threshold for a player to call customer service and disclose their problem than to self-exclude with a few clicks on a mobile app.” Additionally, it pointed out that the customer center has limited opening hours, which could leave at-risk players without immediate support.
Financial Penalty and Regulatory Consequences
The proposed fine of NOK36 million represents 0.35% of Norsk Tipping’s 2024 revenue, which totaled NOK10.2 billion (€876 million). The company has been given three weeks to respond before the regulator makes a final decision on the penalty.
This is one of the largest gaming fines ever issued in Norway. The regulator took into account the duration of the issue, the level of responsibility on Norsk Tipping’s part, and the expectation that the operator should have had proper monitoring systems in place.
Norsk Tipping’s Response and Future Measures
Norsk Tipping CEO Tonje Sagstuen acknowledged the severity of the situation, stating, “We agree with Lotteritilsynet that this is a serious issue and will accept the fine.” She reiterated the company’s commitment to responsible gambling and compliance, emphasizing that Norsk Tipping voluntarily reports non-conformities despite potential regulatory repercussions.
To prevent similar failures, Norsk Tipping has implemented improved monitoring routines to detect and correct technical issues more quickly. The company maintains that the monopoly model ensures a strict supervisory framework that promotes responsible gambling practices.
Previous Regulatory Actions and Debate on Norway’s Monopoly Model
This is not the first regulatory action against Norsk Tipping. In 2023, the operator was fined NOK4.5 million (€383,000) for a payment error that resulted in an erroneous payout of NOK25 million on the KongKasino game.
The recent failures have reignited discussions about Norway’s gambling monopoly. Some politicians, such as Conservative MP Peter Frølich, argue that Norway should transition to a licensing system similar to other Scandinavian countries. Frølich contends that a licensing system would allow regulators to revoke licenses in cases of non-compliance, potentially ensuring stricter oversight. However, Sagstuen continues to defend the monopoly model, asserting that it enables more direct management and control, leading to one of the world’s most responsible gambling regulations.
As Norsk Tipping awaits the final decision on its fine, the case highlights the importance of robust monitoring systems and the critical role of self-exclusion tools in responsible gambling initiatives.