Norsk Tipping cleaning up its act after high-profile regulatory failings

The state gambling operator has outlined its progress in meeting audit recommendations after a series of technical errors and breaches of regulations.

Norway.- The state-controlled gambling operator Norsk Tipping says it’s on its way to tackling the operational shortcomings highlighted in audits following a flurry of regulatory failings. It says it’s currently working on 22 out of 25 recommendations made by KPMG and PwC in October.

The consultants were called in following several technical errors and regulatory breaches, which included customers being wrongly told they had won substantial winnings. PwC had concluded that Norsk Tipping had pursued innovation and product launches “at the expense of quality and control.”

While Norsk Tipping’s final report on its remedial actions is still pending, acting chief executive Vegar Strand says corrective measures are well underway. He said this includes a “thorough review” of the company’s organisational structure and internal culture and a redefinition of management roles with “clearer requirements and expectations”.

Meanwhile, new systems have been introduced for developers and testers. Guidelines have been imposed for development, testing, and operations, with compliance mechanisms to ensure adherence.

Strand said the operator had rolled out a new supplier management framework, with stricter oversight and tougher requirements for partners. He also said that the leadership team has been reinforced, alongside the company’s technical professional community.

He said: “We are now working purposefully to put the problems behind us, and we are on the right track. Of the 25 measures that KPMG has proposed, we are currently working on 22. It will be demanding for the entire organisation, but it is absolutely necessary to strengthen quality and rebuild trust.

“We’ve not waited for the final report to initiate measures, and nobody at our company has any doubt that this work has the highest priority. We must have high quality and avoid mistakes to earn the trust of our customers. We are well under way with the job, but we still have a lot to do.”

The update follows a series of sanctions from the Norwegian gambling regulator. In September, Lottstift issued a €3.9m fine against Norsk Tipping for a major technical error affecting Eurojackpot and Lotto draws dating back to 2015. It also issued a €2.1m fine over an error in the Superdraw on April 19 that resulted in 52 incorrect winners of high prizes being drawn. Further sanctions may still be imposed as investigations continue.