Norway’s Gambling Act states all licensed operators must allow players to self-exclude from gambling at any time.
However, in a statement dated 14 February, the Norwegian Lottery Authority (Lotteritilsynet) said Norsk Tipping had reported issues with an iOS update that meant players were not able to self-exclude via the app between January and May of last year.
A NOK36 million fine has been issued to Norsk Tipping, based on 0.35% of its 2024 net turnover which hit NOK10.2 billion. The operator has three weeks to respond before the regulator makes a final decision on the case.
Norsk Tipping informed the regulator of the matter in June last year, saying it became aware of issue on 20 May when a customer flagged the error. This was fixed two days later but the bug persisted for over four months.
According to Norsk Tipping, the error most likely arose during an update of iOS software on 16 January. This update prevented the self-exclusion tool on its native app from working properly. As such, the option was not available to customers until the issue was rectified in May.
Norsk Tipping players usually have the option to either self-exclude fully from gambling or block themselves from certain games on the monopoly operator’s site.
After it raised the case with Lotteritilsynet in June, an initial meeting on the failing took place on 7 July.
Large number of iOS users gambling with Norsk Tipping
Although iOS app users could not self-exclude during the period, they could still do so through other channels. This includes its website and by contacting customer service.
However, in its assessment, Lotteritilsynet determined the the majority of players gambled via the mobile app, with a “large proportion” of these using iOS. The regulator acknowledged other methods were available but said these were “not sufficient” to meet Gambling Act requirements.
Lotteritilsynet said it was impossible to determine how many customers were impacted by the issue. But it did compare average monthly self-exclusions for the period with the previous year’s.
Between February and April in 2023, approximately 180 customers excluded from all games at Norsk Tipping each month. For the same period in 2024, this average fell to 120. From this, Lotteritilsynet determined approximately 60 customers were not able to exclude during each month of the impacted period.
On top of this, the regulator referenced historical data self-exclusions which suggested an average of 200 to 400 requests per month.
As such, the regulator concludes approximately 240 customers may have been affected.
“Disturbing” failure by Norsk Tipping
Commenting on these approximate figures, Lotteritilsynet hit out at Norsk Tipping for not having contingency plans in place. It described this failing as “disturbing”.
“Although the figures are uncertain and other factors may also play a role, there is still no other explanation for the significant decline in the period,” Lotteritilsynet said.
“It is disturbing that Norsk Tipping has not had a system in place to capture this type of development, so that the error could have been discovered and corrected at a much earlier time.”
Lotteritilsynet also hit back at the statement from Norsk Tipping that players could still self-exclude through other routes. It said having to go online and navigate to the right page or contact customer support is not the same as a “few clicks” on a mobile app.
“It is a much higher threshold for calling the customer service centre and telling another person that you have a problem and want to lock yourself out, than being able to lock yourself out through a few clicks on your mobile phone or tablet,” Lotteritilsynet said.
“The customer centre also has limited opening hours and for many, being able to call the next day doesn’t help.”
Norway regulator: violation is “significant”
Lotteritilsynet went on to say while the offense was due to external factors, the blame still lies with Norsk Tipping. It said the violation is “significant”.
“Norsk Tipping has not provided sufficient testing or control of such a central accountability tool as being able to exclude themselves from gambling,” Lotteritilsynet said.
“It is very serious that Norsk Tipping does not have more frequent checks of such a central accountability tool, as errors in these tools potentially affect many vulnerable players.”
Original article: https://igamingbusiness.com/legal-compliance/norsk-tipping-fine-self-exclusion-failure/
