Norwegian Industry Association for Online Gaming (NBO) general secretary Carl Fredrik Stenstrøm believes Norsk Tipping has been able to get away with mistakes for the last five years due to Norway not being a “well-regulated” market.
At the end of June, Norsk Tipping CEO Tonje Sagstuen resigned following a major error in a Eurojackpot draw. Thousands of players were told they had won large jackpots when in fact they had not due to currency conversion error.
Though the state-owned operator said no incorrect amounts were paid out to customers, Sagstuen left her post after talks with Norway’s culture minister Lubna Jaffery.
In the statement announcing Sagstuen’s resignation, Norsk Tipping alluded to previous mistakes by the operator in the last few months, including self-exclusion errors.
However, in an op-ed published by Ostlendingen, Stenstrøm argued the lottery operator had been making mistakes for at least half a decade without effective punishment due to Norway’s monopoly model.
The NBO general secretary claimed there had been faulty lotto and Eurojackpot draws that meant “the chance of winning was non-existent, even though players had paid for it” and that questions raised by the both the Conservative Party and the Progress Party have been left largely unanswered.
He added that the fines the operator has been handed are not working and “stricter” punishments are needed.
Stenstrøm wrote: “The biggest hammer in the [regulator’s] toolbox is its ability to order rectification and closure of operations.
“In a more open market, the provider would have been ordered to close its operations after so many serious violations of the Gambling Act.
“However, the likelihood of this happening to Norsk Tipping is small. The economic consequences are too great for that.
“It must nevertheless be expected that the [regulator] will order Norsk Tipping to correct what they have done wrong.
“In a well-regulated market they would have had no other choice.
“The main problem is that Norsk Tipping has few, if any, incentives to improve. They have almost zero competition, the consequences of making mistakes are virtually non-existent, and the owners – the Ministry of Culture and Equality – have traditionally left the helm, course and destination to Norsk Tipping itself.”
EGR has contacted Norsk Tipping for comment.
Stenstrøm spoke to EGR in 2023 about whether Norway should follow in Finland’s footsteps and implement a multi-licence gambling model.
The post Norsk Tipping would be punished in a “well-regulated” market, claims trade body boss first appeared on EGR Intel.
Carl Fredrik Stenstrøm says monopoly model has allowed operator to repeatedly make mistakes for the last five years and avoid consequences
The post Norsk Tipping would be punished in a “well-regulated” market, claims trade body boss first appeared on EGR Intel.