Norsk Tipping could face a fine of up to NOK36 million (€3.1 million) from the Norwegian Gaming Authority (NGA) for a “technical failure” in the self-exclusion and time-out capabilities in its iOS gaming app.
The issue, which was tracked back to an iOS upgrade on January 16, 2024, prohibited some users from successfully removing themselves from gambling activities within the app.
The organization learned about the issue in May 2024, when a customer reported being unable to use the exclusion option. According to Norsk Tipping, once the problem was identified, a solution was immediately adopted.
In June 2024, the corporation notified the disparity to the Norwegian Gaming Authority, providing all required paperwork.
Following that, Norsk Tipping held negotiations with the regulator, recognizing the gravity of the situation.
CEO Tonje Sagstuen emphasized the company’s dedication to responsible gaming and regulatory compliance, adding that Norsk Tipping willingly reports any severe non-conformities, despite the possibility of regulatory repercussions.
She also emphasized the need of the monopoly model in establishing a tight regulatory environment that ensures responsible gaming behavior.
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The NGA saw the failure as a major infraction of Section 7, third paragraph, of the Gambling Act, as well as Section 9 of Norway’s Gambling Regulations.
The Authority justifies the prospective fine by arguing that Norsk Tipping, as an exclusive rights operator, has a fundamental responsibility to protect vulnerable participants.
The capacity to withdraw oneself from gambling activities is crucial for problem gambling prevention, and failure to maintain its availability is considered a significant regulatory lapse.
One of Norway’s highest gaming fines
When determining the punishment, the regulator took into account the duration of the problem, the severity of the error, and the assumption that Norsk Tipping would have control procedures in place to detect and correct similar errors quickly.
Although impacted customers had other ways to self-exclude, such as through Norsk Tipping’s website, customer service, gaming terminals, and unaffected devices, the NGA found these options insufficient.
It expects these exclusion mechanisms to work seamlessly across all platforms, providing rapid access for players looking to limit their gaming behavior.
In reaction to the infringement, Norsk Tipping has enhanced its monitoring procedures to prevent similar problems from occurring in the future.
CEO Sagstuen reaffirmed the company’s commitment to responsible gambling, emphasizing that self-exclusion and time-out tools should always be widely accessible to all clients.
The proposed fine of NOK36 million is equivalent to approximately 0.35% of Norsk Tipping’s turnover in 2024.
This isn’t the first time the state-owned casino operator has faced regulatory action. Last year, Norsk Tipping was penalized NOK 4.5 million for a payment error, which the authority deemed a significant violation of the Money Gambling Act.
The incident featured an erroneous payout of NOK25 million on the KongKasino game in March of that year.
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