Norsk Tipping Fined NOK4.5m for Jackpot Blunder
Norway’s gaming regulator, Lotteritilsynet, has imposed a fine of NOK 4.5 million ($428,567) on state-owned operator Norsk Tipping for mistakenly overpaying a jackpot prize.
LISTEN TO THIS ARTICLE:KongKasino, Norsk Tipping’s online casino, accidentally breached Norway’s Money Gambling Act regulations by paying a jackpot higher than the permitted maximum.
The case in question happened on March 1 when a player got a NOK 25 million payout after winning a jackpot. The payout prize far exceeds KongKasino’s accepted maximum payout limit of NOK5 million and an additional NOK100,000 standard prize.
Norsk Tipping attributed the erroneous jackpot payout to a technical issue that it didn’t previously know of. The operator stated that the customer notified it of the mistake and, in accordance with their customer agreement, has since returned the excess funds.
Norsk Tipping has also upgraded its systems to include more comprehensive prize checks. Effective immediately, the operator will conduct thorough checks on all prizes exceeding NOK100,000.
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In July, Lotteritilsynet issued an infringement notice to Norsk Tipping regarding its failure to adhere to regulations. Despite the operator’s subsequent response, the explanation was deemed insufficient to waive the penalty.
In its assessment, Lotteritilsynet emphasized that the operator bears responsibility for ensuring compliance with regulatory requirements. Lotteritilsynet also identified a shortfall in Norsk Tipping's prize verification procedures. It stated that at the time of the payout, the operator only checked prizes over NOK 50 million.
This is a big wrongful payment. There is a relatively high chance the money could have gone to a player with a gambling problem or at risk of getting it. Then those involved would have had a lot to play for. Norsk Tipping did not have good enough security measures linked to prize payouts when the error occurred. This is a serious system failure. They have subsequently introduced measures and we have included that in the assessment of the fee.
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