Norsk Tipping Faces Penalty After Paying Out Excessive Jackpot
KongKasino, an online casino operated by Norsk Tipping, recently paid a jackpot exceeding the legal limit set by Norway’s Money Gambling Act. The payout of NOK25 million occurred on 1 March due to a technical error, significantly surpassing the NOK5 million maximum allowed for jackpots, along with the standard prize limit of NOK100,000.
Technical Error Leads to Overpayment
The error was identified after the winning customer flagged it to Norsk Tipping, which was initially unaware of the issue. Following this, the customer returned the excess amount in accordance with the operator’s agreement with players.
Norsk Tipping explained that the error was due to a technical glitch that it had not previously identified.
In response, the operator has implemented changes to its systems, now running checks on all prize payouts above NOK100,000.
Previously, the company only monitored prizes exceeding NOK50 million, a threshold now deemed inadequate by regulators.
Lotteritilsynet’s Enforcement and Penalty
Despite the corrective actions taken by Norsk Tipping, Norway’s gambling regulator, Lotteritilsynet, issued an infringement notice in July and has since decided to impose a penalty.
The operator’s response to the error did not absolve it from facing repercussions.
Lotteritilsynet stated: “We understand Norsk Tipping cannot predict and prevent all types of incidents, and that errors will occur. However, as a provider of gambling that requires a permit, Norsk Tipping is obliged to establish routines that ensure that they comply with the requirements.”
The regulator pointed out that Norsk Tipping’s previous system, which only checked prizes over NOK50 million, was too lenient given that the company offers several games with regulated prize limits significantly below that threshold.
NOK4.5 Million Penalty for Breach of Law
Based on the severity of the error, Lotteritilsynet has imposed a penalty of NOK4.5 million on Norsk Tipping. The regulator highlighted that while the company has introduced new security measures following the incident, the error represented a “serious system failure.”
Atle Hamar, director of Lotteritilsynet, commented: “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. Norsk Tipping did not have good enough security measures linked to prize payouts at the time the error occurred.”
Although Norsk Tipping has taken steps to improve its systems, the penalty reflects the regulator’s view that the incident was a significant breach of Norway’s gambling regulations. The operator retains the option to appeal the decision.
