Norsk Tipping faces €3m fine for self-exclusion failures

February 19, 2025

Norsk Tipping faces €3m fine for self-exclusion failures

Norsk Tipping, the state-owned gambling operator in Norway, is facing a potential fine of NOK36 million (€3.1 million) for a significant lapse in its self-exclusion service. The Norwegian Gambling Authority (Lotteritilsynet) announced its intention to fine N orsk Tipping following a system failure that prevented Apple users from accessing the self-exclusion tool within the operator’s iOS app between January and May 2024.

Cause of the self-exclusion failure

The issue stemmed from an iOS update on January 16, 2024, which inadvertently affected the functionality of the self-exclusion tool on Apple devices. This malfunction meant that players attempting to block themselves from gambling via the app were unable to do so. Norsk Tipping became aware of the problem in May 2024 when a customer reported the issue. The company reported the discrepancy to the Norwegian Gaming Authority in June 2024 and provided documentation regarding the issue.

Regulatory response and legal implications

Lotteritilsynet considers the failure a serious breach of Norway’s Gambling Act. The regulator argues that protecting vulnerable players is Norsk Tipping’s primary responsibility and that the company should have systems in place to detect and correct such errors immediately. Tore Bell, a department director at the lottery authority, stated that “The fact that the exclusion has not worked is a clear violation of the law. Both the fact that the error occurs and that it is not detected is a serious failure in systems and routines.“ The regulator also noted that the need to navigate to a web page or contact customer support was not a sufficient alternative to being able to exclude via a few clicks on a mobile app.

Financial impact of the proposed fine

The proposed fine of NOK36 million represents 0.35% of Norsk Tipping’s 2024 revenue, which reached NOK10.2 billion (€876 million). Norsk Tipping has three weeks to respond to the proposed fine before the regulator makes a final decision.

Impact on at-risk gamblers

While it is impossible to determine the exact number of at-risk gamblers affected, Lotteritilsynet noted a decline in self-exclusion requests during the period the glitch went undetected. Between February and April 2023, an average of 180 people self-excluded per month, compared to just 120 per month during the same period in 2024. The regulator estimates that between 60 and 240 customers could have been unable to self-exclude as a result of the error.

Norsk Tipping’s response

Norsk Tipping CEO Tonje Sagstuen acknowledged the gravity of the situation, stating, “We agree with Lotteritilsynet that this is a serious issue and will accept the fine”. Sagstuen also emphasised the role of the monopoly model in ensuring a strict supervisory framework that enforces responsible gambling practices. In response to the violation, Norsk Tipping has implemented improved monitoring routines to prevent similar issues from occurring in the future.

Previous regulatory actions against Norsk Tipping

This incident is not the first regulatory action against Norsk Tipping. Last year, the operator was fined NOK4.5 million (€383,000) for a payment error involving an erroneous payout of NOK25 million on the KongKasino game.

Debate over Norway’s gambling monopoly

These errors have fuelled the debate over whether Norway should dismantle its monopoly and adopt a licensing system similar to that of its Scandinavian neighbours. Peter Frølich, a senior Conservative Party MP, has advocated for Norway to consider a licensing model, arguing that a licensing system would allow for the revocation of licences and stricter action against errors. Sagstuen, however, maintains that the exclusive model provides strict control and direct management options, leading to the world’s most responsible gambling regulation.