Norsk Tipping has been fined NOK 4.5m (approximately €383,000) by the Norwegian gambling and foundation authority Lotteritilsynet for a payout error which resulted in a player being paid NOK 25m (approximately €2.13m).
Lotteritilsynet stated that back in March, Norsk Tipping paid a player NOK 25m by mistake from its online casino game KongKasino, despite the game only having a maximum prize of NOK 100,000 and a jackpot prize of NOK 5m.
The operator told the authority that it happened due to an unexpected error that was difficult to predict. However, the error had not been discovered until the player who received the money notified Norsk Tipping of the mistake.
The player paid back the prize to Norsk Tipping in line with its customer agreement.
In July, Lotteritilsynet sent a notice of infringement fees to Norsk Tipping, but the comments it has received from the operator haven’t changed its opinion on the matter.
Within its decision, the authority stated that it “understands that Norsk Tipping cannot predict and prevent all types of incidents and that errors will occur”, but added the operator must have the correct systems in place to stay compliant with the country’s laws.
The decision said: “As a provider of gambling that requires a permit, Norsk Tipping is obliged to establish routines that ensure that they comply with the requirements of the Gambling Act and the Gambling Regulations, cf. Gambling Regulations Section 2.
“The information we have received from Norsk Tipping in the case shows that the company at the time of the incident only carried out additional checks which could have prevented this type of incorrect payment for premiums over NOK 50m.
“In our view, this threshold for additional controls is too high. We would like to point out that Norsk Tipping offers several games where the regulated prize limits are set significantly lower to prevent gambling problems, and that it is very rare that prizes over NOK 50m are paid out by the company.
“Norsk Tipping has also stated that, following the incident with the incorrect payout, they have identified a need for, and have introduced, additional controls for prizes, at or above the prize limit of NOK 100,000 from KongKasino.”
Reflecting on the case, Lotteritilsynet Director Atle Hamar said in a statement on the authority’s website that the incorrect payment was a “serious breach” of Norway’s gambling law and that the money could have gone to someone who had a gambling problem or was at risk.
Hamar commented: “Norsk Tipping did not have good enough security measures linked to prize payouts at KongKasino when the error occurred, and this is a serious system failure.
“They have subsequently introduced measures, and we have included that in the assessment of the fee.”
Norsk Tipping can appeal the decision and has a deadline of three weeks from the decision being received to do so.
