Norwegian lottery operator Norsk Tipping faced a technical malfunction in their lottery system, mistakenly drawing 52 winners, which may result in a fine of 25 million Norwegian kroner (approximately 2.5 million US dollars) from the Norwegian Lottery Authority (Lotteritilsynet). This incident affected over 16,000 participants, with the regulatory body pointing out the company's "significant negligence" in ensuring the accuracy and credibility of the lottery process.
Event Overview and Penalty Amount
The Norwegian Lottery Authority, Lotteritilsynet, recently issued a penalty notice to Norsk Tipping for a major technical malfunction during the "Super Draw" event on April 19, which incorrectly selected 52 winners and awarded million-kroner prizes. The preliminary fine amount is set at 25 million Norwegian kroner.
Norsk Tipping has three weeks to present their defense, after which the regulatory body will make a final decision on the penalty. This is the latest in a series of penalties the company has faced recently.
Technical Malfunction and Scope of Impact
The technical malfunction occurred during the lottery event on April 19, 2023, where the system erroneously selected 52 winners and granted prizes that were not supposed to be awarded. The malfunction also led to the deletion of players who submitted their bets through partner banks during the Christmas and New Year period, who were subsequently excluded from the Easter lottery draw.
According to the regulatory body, a total of 16,698 participants were affected by this malfunction, accounting for about 0.2% of all participants. This error not only caused deviations in the lottery process but also affected players' trust in the lottery system.
Regulatory Response and Company Responsibility
Tore Bell, head of the Lotteritilsynet department, stated that Norsk Tipping had "significant negligence," having been aware of system vulnerabilities before the issue occurred but failing to take effective measures to prevent the error. The regulatory body had considered intervening but allowed the lottery to proceed after the company made assurances.
Bell emphasized, "For lotteries, trust in the draw and the correctness of the lottery basis is absolutely crucial. The Norwegian gambling company did not check whether all levels were included in the draw, although they were aware that the draw basis had serious errors for a long time."
Company Reaction and Remedial Measures
Norsk Tipping has refunded the betting amounts to players who did not participate in the draw and submitted an initial safety report after the incident, claiming the lottery process was smooth and all players had an equal chance of winning. However, the regulatory body pointed out that this report contradicted the facts.
This incident has intensified public scrutiny of the company's operational capabilities, and the regulatory body believes it could further weaken players' trust in the lottery system.
Historical Penalties and Industry Background
If this penalty is finalized, it will be the fourth fine Norsk Tipping has faced in the past year. Previously, the company was fined 46 million Norwegian kroner for technical malfunctions in the Eurojackpot and Lotto; 36 million Norwegian kroner for issues with self-isolating players' access; and 2.5 million Norwegian kroner for incorrect prize payments.
The regulatory body also mentioned that Norsk Tipping might face an additional fine of 10 million Norwegian kroner for other errors in the Eurojackpot game, which led to 47,000 players being incorrectly informed about their winnings.
Future Regulation and Industry Impact
Lotteritilsynet announced that it would conduct a large-scale inspection this autumn, focusing on the operation of lotto, Eurojackpot, and Vikinglotto. The regulatory body emphasized that Norsk Tipping must strictly follow procedures, strengthen control measures, and improve service quality.
This series of events has also attracted the attention of Scandinavian peninsula gambling industry organizations, with multiple organizations jointly criticizing the regulatory body for a "lack of action" in handling such events, considering it a "typical case against the national gambling monopoly."
