The state-owned monopoly is now facing investigation by the country’s gambling regulator which is investigating the allegations
Norsk Tipping, the only gambling operator in the country, and a state-owned monopoly, is in fresh trouble with the regulator, Lotteritilsynet, which is investigating claims that minors were allowed onto the gambling platform and placed wagers with it.
A total of nine questions were placed to the operator, who will have two weeks to respond to the inquiry. This comes following reports from a Norwegian bank, which flagged the issue first.
Norsk Tipping to Provide Answers in Regulatory Probe Involving a Minor Account
According to the financial institution, money was transferred from the bank account of an individual under the age of 18 to the Norsk Tipping platform, indicating how banks can actually help intervene and protect consumers.
The bank described the sums transferred as “significant,” triggering the regulatory intervention. The account is said to have been making transactions for a year. Because of this, the regulator is now seeking to analyze the financial risk monitoring deployed by Norsk Tipping and how it ensures the effectiveness of its policies.
The questionnaire handed to Norsk Tipping similarly outlines 21 cases since January that Norsk Tipping has identified as possibly tied to violations that were not passed on to the regulator for further examination.
However, the regulator refrained from passing judgment at the present date, arguing instead that further examination of the available facts was necessary to understand what happened. Should Norsk Tipping be found to have failed to uphold existing gambling laws, though, the company may face hefty fines, the likes of which it has already had to foot.
In February, the state monopoly was hit with a €3.1 million ($3.50 million) penalty because of the operator’s failure to allow players to self-exclude from its platform due to a technical glitch. Although contested, the fine was imposed in full.
Norway’s Gambling Industry Subject to Hot Debate
In the meantime, Norway remains the very last market in Europe to employ a state monopoly as its main business model.
Politicians and industry observers, including trade groups such as the European Gaming and Betting Association, have repeatedly called for Norway to switch to a licensee-based model in the same way that Finland has.
However, the current model seems to remain entrenched, especially now that the Lotteritilsynet has reported a slight uptick in player registrations with Norsk Tipping, attributing this to the success of the efforts to limit the clout of offshore and illegal gambling operations.
However, jurisdictions such as the Netherlands argue that 50% of their online gross gaming revenue is generated through the black market, highlighting the challenges of dealing with the sector.
Last year, Norsk Tipping was also fined $427,000 for breach of AML rules.
