The regulator received a tip from a bank that a “relatively large amount of money” had been transferred from an individual under the legal gambling age of 18 to Norsk Tipping. According to Lotteritilsynet, since January 2024, Norsk Tipping has received tips about 21 similar cases.

The investigation marks the second time within a year that Norsk Tipping has come under fire from the regulator. Last fall, the operator received a fine of NOK 4.5 million ($443,000) for mistakenly paying out a customer NOK 25 million ($2.46 million)

Minors Were Sharing Adult Accounts to Wager On Norsk Tipping

In a press release, the regulator emphasized that it’s too early to determine precisely what happened. However, according to Tore Bell, Department Director at Lotteritilsynet, the organization has requested more information from Norsk Tipping.

Some of the initial findings are that there are no indications that minors have created accounts at Norsk Tipping. Instead, based on the information gathered, Lotteritilsynet determined that an adult user was sharing or lending their account to a minor.

The regulator emphasizes that it is a violation of Norway’s Gambling Act and the Anti-Money Laundering Act.

Lotteritilsynet Raises Nine Questions for Norsk Tipping

The regulator and the operator have already conducted two phone calls on May 8 and May 9. They also had a meeting on May 13. As part of the investigation, Lotteritilsynet sent a letter to Norsk Tipping, raising nine questions:

• When were Apple Pay and Vipps payment methods introduced, and what risk assessments did Norsk Tipping make?
• Have there been follow-up risk evaluations after learning that minors may be gambling with borrowed accounts?
• Has Norsk Tipping considered notifying Lotteritilsynet about the 21 reported cases?
• Has there been a follow-up to the 21 cases? How much was gambled?
• Have there been reports of similar cases before 2024? If so, how many?
• What actions has Norsk Tipping taken to prevent underage gambling using others’ accounts?
• Following up on the May 13 meeting between the regulator and the operator, has Norsk Tipping considered removing Vipps and Apple Pay as payment options?
• How are Vipps and Apple Pay assessed concerning age restriction rules and requirements for proper account misuse controls?
• How do Vipps and Apple Pay comply with anti-money laundering rules when it cannot be verified whether the funds belong to the account holder?

Lotteritilsynet has given Norsk Tipping two weeks to respond to the questions.

Regulators Step Up Market Oversight

The underage gambling case comes amid the regulator’s efforts to strengthen oversight of the gambling market in Norway. As part of that, Lotteritilsynet launched a new DNS blocking campaign in April, which immediately blocked 57 illegal sites operated by 23 companies.

Meanwhile, around the same time, another regulator, Lottstift, launched a new four-year program to combat match-fixing in sports.

The “Combating Manipulation of Sports Competitions – A Strategy Plan 2025-2028” brings together key stakeholders, including he police, the Lottery and Foundations Authority, the Norwegian Football Association, the Norwegian Trotting Association, the Ministry of Culture, the police force, and licensed betting firms.

The plan emphasizes preventive education through public awareness campaigns and regular threat assessments to identify possible upcoming areas of concern.

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The Norwegian Gambling Authority, Lotteritilsynet, made the move, marking the Scandinavian country’s first-ever use of DNS blocking to restrict online gambling activity.

Norwegian regulators have also stipulated that only two operators—Norsk Tipping and Norsk Rikstoto—are legally allowed to offer gambling services in the country. They state that they have targeted 57 sites operated by 23 firms without a license to serve Norwegian nationals.

“Blocking illegal websites will help fewer people develop gambling problems,” said Silje Sægrov Amble, a lawyer representing Lotteritilsynet. “These are the games that have the highest risk—they are designed to get you hooked, and you can lose a lot of money in a short time.”

As a result of the DNS block, Norwegians who attempt to enter unlicensed gambling websites will be redirected to a warning page hosted by their internet service provider. Meanwhile, other users may instead see messages stating that the site does not exist or that the internet connection is not private.

April’s widespread ban follows warnings by the regulator last autumn, which were issued to nearly 50 companies whose websites risked being blocked. Despite some firms initially refusing, almost 40 of the 100 targeted sites did withdraw from the Norwegian market or make the necessary changes to ensure they complied.  

Mounting Pressure on Illegal Operators in Norway

Lotteritilsynet declared that its DNS rollout is part of a larger strategy that includes advertising bans and, in some cases, banking restrictions. Norwegian banks have been blocking gambling-related transactions with illegal providers since 2010, and more recently, the 2021 legislation banned TV advertising by foreign operators.

Stressing previous regulatory efforts to curb the trend, Amble stated, “It is becoming increasingly difficult to be an illegal gambling company in Norway,” insisting, “TV advertising is gone, and Norwegian banks are stopping bets and winnings to and from these companies.”

Despite Lotteritilsynet’s countermeasures, raising public awareness of the issue is still challenging, as illustrated by a recent Sentio survey, which found that 5 out of 10 Norwegians do not know whether the sites they use are legally authorized.

“Players do not know about the risk,” said Amble. “We believe most people want information that they are entering an illegal game—therefore, blocking is also an information measure.”

While Norway’s most recent campaign to tackle the ongoing issue is undoubtedly a step up from its earlier measures, Lotteritilsynet understands the DNS implementation won’t entirely solve the problem and continues to call for further enhanced monitoring and enforcement measures.

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The amended regulations will usher in bingo changes related to operator and supplier registration, as well as player loss limits. 

To be implemented in two stages across 2025, the Norwegian government amendments come in response to practical challenges documented by industry associations.

From 1 January next year, game suppliers will be required to register to provide content to bingo halls across the country.

Meanwhile, from 1 September 2025, bingo hall customers must be allowed to set loss limits for their play. From the same date, it will be a requirement for each bingo hall to register their venue.

Culture and Equality Minister, Lubna Jaffery, commented: “Electronic bingo games in bingo halls and online in connection with the bingo venue have for a long time been allowed to operate without loss limits, this has come at the expense of vulnerable players and their relatives. 

“That is why we are now putting in place more responsible frameworks around these gambling games.”

The amendments are being implemented following a consultation period where more than 500 responses were received.

Jaffery noted that while the Government would have liked to have introduced the new amendments by the turn of the year, they have listened to the input from industry associations to understand the challenges they face with the changes.

The Minister for Culture and Equality added: “Our gambling policy is based on the consideration of people who are in the risk zone for gambling addiction. 

“The exclusive rights model is built on accountability, and I therefore believe it is right to primarily take the vulnerable players into account here. The consequences for people with gambling problems and their relatives can be enormous.”

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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.

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Reducing their marketing costs by June 30, 2024, Lotteritilsynet has stated that Norsk Tipping must cut back by at least NOK 45m (20 per cent), while Norsk Rikstoto will cut back close to NOK 3.4m (5.2 per cent).

Norsk Tipping has to cut back on marketing more than Norsk Rikstoto because the competition for the companies’ games faces different competition from the illegal players.

The gambling authority noted that it is ‘satisfied’ that both operators have completed the process of reducing marketing pressure.

Atle Hamar, General Director of Lotteritilsynet, said: “Advertising and marketing for gambling is harmful for those who have problems with gambling.

“According to Norwegian law, gambling can only be marketed as far as is necessary to inform about the gambling offer and lead the desire to gamble in society to responsible and safe gambling.”

The decision to reduce marketing comes as illegal gambling advertisements are removed from Norwegian TV.

In turn, Lotteritilsynet notified Norsk Tipping and Norsk Rikstoto in August 2022 that they must take measures to reduce advertising, which they have adopted.

Hamar stated: “The illegal providers’ bets on horses with fixed odds are not in direct competition with the bets of the Norwegian National Sports Confederation. 

“Nevertheless, we have seen that such games have been marketed by the illegal players in order to lure Norwegians to an illegal casino offer.”

Earlier this month, Norway’s government amended its gambling act to allow Lotteritilsynet to block illegal websites starting next year.

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According to a recent survey carried out by the NLA around 23,000 Norwegians suffer from gambling problems, and the helpline offers an invaluable service for players dealing with issues of gambling harm and their relatives. 

In 2022, 825 calls were made to the helpline, which the NLA suggests was an increase on 2021’s statistics as ‘more and more people are contacting the helpline’. 

Set to take over the helpline as a result of its previous operator, Sykehuset Innlandet, announcing that it no longer wishes to run the service, Blå Kors runs outpatient treatments in Oslo, Skien and Haugaland which are specialised in treating both gambling and video game addiction. 

“The helpline is an important low threshold offer for players and their relatives,” said Lars Petter Degnepoll of the Norwegian Lottery Authority.

“The helpline can be the start of getting out of the problem. Blå Kors has worked with gambling problems for a long time and is well equipped to take over the helpline.”

In addition to running the phone line, Blå Kors has launched the ‘Blå Kors Gambling Addiction’ initiative that will see it take over other remote-based treatments for gambling addicts.  

“Blå Kors has extensive experience in treating various addiction problems, including gambling addiction and we want to expand our work in this area,” added Trine Stensen, Secretary-General of Blå Kors.

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Recommended by the Ministry of Culture and Equality on October 20 and approved by the Council of State on the same day, the Gambling Act amendments will allow Lotteritilsynet to force internet service providers to domain name system block any gambling website that is not permitted in the country from January 1, 2024.

“We do this primarily to prevent and limit gambling problems, and to look after vulnerable players and their relatives,” commented Lubna Jaffery, Minister of Culture and Equality.

From the beginning of next year, only Norsk Tipping and Norsk Rikstoto – the two operators allowed to offer gambling services under Norway’s monopoly system – will be allowed to have an online presence in the country.

If players try to access an illegal website, they will instead be sent to a landing page of their internet service provider where they will be notified that the website they are trying to access has been DNS blocked.

Lotteritilsynet also has a similar ban in place with payment providers to stop transactions with gambling operators that do not hold a licence in Norway.

Jaffery added: “If the foreign gambling companies had followed Norwegian law, this would not have been imposed on the internet providers. Therefore, we have to regulate this by targeting actors over whom we have jurisdiction.”

Norway’s gambling operates under a monopoly system where only Norsk Tipping and Norsk Rikstoto are allowed to operate in the country.

However, the monopoly system has its critics, as Maarten Haijer, Secretary General of the European Gaming and Betting Association, has recently encouraged the Nordic country to switch to a licensing model to meet the “clear demand for alternatives” by players.

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Section five of Norway’s gambling act prohibits payment transactions with gambling operators that do not hold a licence in the country. The authority noted that it has the right to order banks to reject transactions to and from specific accounts and companies.

The nine banks being observed by Lotteritilsynet were not specified, but the monitoring is part of the authority’s enforcement of the ban to help reduce problem gambling in the country.

“For a long time, we have focused on dialogue with Norwegian banks and financial institutions. For the first time, we have now chosen to open a more thorough inspection of compliance,” commented Rannveig Gram Skår, Lawyer and Senior Adviser at Lotteritilsynet.

“We know that the payment intermediary ban is an important tool to protect the Norwegian sole proprietorship model. The purpose of the model is to prevent gambling problems and other negative consequences of gambling.”

Results from a recent population survey indicated that the ban on payments to and from illegal operators has reduced problem gambling in Norway, as it has become more difficult for the public to gamble with foreign operators.

The gambling authority has asked each bank to provide information on the measures they have taken to stop transactions to and from identified companies and account numbers, as well as compliance routines.

“The banks have three weeks to submit the documentation and information we have requested. We largely expect to see that the banks have effectively complied with our decisions,” noted Skår.

Earlier this year, Lotteritilsynet announced plans to launch a high-concentration DNS blocking campaign in 2024 to stop unlicensed online gambling firms from offering their product in the country.

However, Maarten Haijer, Secretary General of the European Gaming and Betting Association, has recently encouraged the Nordic country to switch from a monopoly system to a licensing model for online gambling to meet the “clear demand for alternatives” by players in the country.

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Unlike many of its surrounding countries, Norway’s gambling operates under a monopoly system with only two operators allowed to offer gambling services – Norsk Tipping and Norsk Rikstoto.

The Norwegian gambling authority, Lotteritilsynet, also has plans to launch a high-concentration DNS blocking campaign in 2024 to stop unlicensed online gambling firms from offering their product in the country.

Yet, a recent statement by Maarten Haijer, Secretary General of the EGBA, has encouraged the Nordic country to switch from a monopoly system to a licensing model for online gambling to match its European neighbours.

Haijer argued that Norway needs to make the licensing switch to meet the “clear demand for alternatives” by players in the country.

He said: “The belief that a monopoly model is essential for safer gambling does not align with the current European trend. Nearly every other European country has implemented some form of licensing system, successfully prioritising player safety within a regulatory framework that provides clear rules for companies to follow. 

“In Norway, there is a clear demand for alternatives to the current gambling monopoly, as evidenced by the determination of players to actively seek out and access international websites which offer them greater choice. It is crucial for the government to recognise and respond to this demand.”

The Secretary General added that a licensing system would not only meet this demand by players but also bring in more tax revenue and enhance player protection, providing “a more comprehensive approach to gambling regulation that prioritises player safety”.

“Introducing a licensing system would address the demand for alternative gambling options, increase tax revenue, and enhance safer gambling measures by regulating more operators within the country,” stated Haijer.

“Neighbouring countries like Sweden and Finland have already recognised the benefits of transitioning from a monopoly system to a licensing model, leaving Norway as the only country in mainland Europe committed to an exclusive gambling monopoly. 

“It is essential for the authorities to evaluate whether this approach remains relevant in the modern digital age and in comparison to the practices adopted by other European countries.” 

Haijer concluded: “We strongly urge the Norwegian authorities to consider the advantages of a licensing model, which can effectively meet the evolving needs of its players and foster a more comprehensive approach to gambling regulation that prioritises player safety.”

Earlier this month, Lotteritilsynet announced that several operators are pulling their gambling services out of the Nordic country following an audit of their operations.

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Unibet, Betsson, ComeOn and bet365 were named by Lotteritilsynet in a list of 15 operators that are pulling out of the Norwegian gambling market.

“These are companies that are neither allowed to offer nor market gambling to Norwegians,” noted Henrik Nordal, Deputy Director General of Lotteritilsynet.

“The fact that several of the largest gambling companies that operate illegally in Norway withdraw will prevent gambling problems and contribute to a safer and more responsible gaming offer in the Norwegian market.”

The complete list of those withdrawing from the country includes; Unibet, Mariacasino, High Roller, Bingo, Betsson, Betsafe, Nordicbet, Norgesautomaten, CasinoEuro, ComeOn, bet365, People’s Kingdom, GetLucky, Mobilebet and Mobile Automaton.

Nordal continued: “This shows that the regulation works. It has become much harder for the illegal companies to operate in Norway. We also offer guidance to companies wishing to withdraw from the Norwegian market.”

Lotteritilsynet added that additional audits of several companies operating without a licence in Norway will take place unless they inform the gambling authority that they will be withdrawing from the country’s market.

“Companies that do not withdraw from the Norwegian market risk that their websites will be blocked next year, when we get new regulations in place. This means that Norwegian players will be stopped if they try to access any of these pages.”

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