Flaws in Eurojackpot System Exposed by Scandal at Norsk Tipping

  • UM News
  • Posted 6 months ago
00:00 / 00:00

@Norsk Tipping’s Eurojackpot scandal in Norway has become more than just a local disgrace; it exemplifies the problems inherent in state-controlled gambling monopolies. The incident led to tens of thousands of Norwegians being mistakenly told that they had won millions of Kroner.

Following the scandal, the CEO of the Norwegian monopoly resigned amid a collapse in public trust. Despite this, both Eurojackpot and Norsk Tipping continue their operations almost as if the incident never occurred.

**Who regulates the Eurojackpot draw?**

Eurojackpot operates as a transnational lottery, coordinated by 19 national monopolies with no effective oversight structure. While these monopolies operate under a unified brand, there is no joint regulatory body or transnational supervisory mechanism in place, leaving each country to oversee its segment independently.

This absence of a cohesive regulatory body means that when one country faces an issue, the others tend to continue without addressing the underlying problem. Essentially, Eurojackpot is self-regulated, allowing significant errors to occur without repercussions for anyone except the players who bear all the risks.

For example, on 27 June, Finnish coordination led to a significant error when the result file was distributed incorrectly to other participant countries.

**How did Norsk Tipping respond to the Eurojackpot scandal?**

The scandal unfolded due to a computational error where winnings in Norway were mistakenly multiplied rather than divided, leading to texts being sent to players indicating they had won substantial amounts—millions, instead of the actual figure, which was mere hundreds of Kroner. This misinformation was not promptly corrected, leading many to believe their lives had dramatically changed, only to find out the truth through the media.

The initial response from Norsk Tipping came only on the following Monday morning, with a statement that they had not prioritized informing those directly impacted—an approach many found unacceptable.

This fiasco was further exacerbated by Eurojackpot’s inherent motive to promote ever-increasing jackpot amounts, feeding into the fantasy of massive winnings.

**An argument against gambling monopolies**

Historically, state lottery monopolies have been marketed as entities that promote responsibility and protect players. However, the reality has proven quite different. These monopolies operate without significant competition or oversight, accountable to no one until a scandal forces transparency.

There should be a requirement for more effective and transparent regulation even if a monopoly runs Eurojackpot. Self-supervision simply is not sufficient.

With licensing, multiple operators would compete under clearly defined, enforceable regulations with constant oversight. Any violations would be swiftly addressed, and no entity could rely on political backing or hide behind national boundaries.

For the sake of players, societal well-being, and the integrity of the industry, licensing offers a path toward accountability.

As of today, (19 August), there’s another operational hiccup with Eurojackpot. Norsk Tipping announced a delay in the prize forecast due to issues at the control center in Germany. The results will be published once everything is sorted, revealing yet another instance of Eurojackpot operating at its discretion without external deadlines, quality control, or repercussions for failures.

**Contributors:**

Mika Kuismanen – CEO, Finnish Trade Association for Online Gambling

Gustaf Hoffstedt – Secretary General, Swedish Trade Association for Online Gambling (BOS)

Peter-Paul de Goeij – Former Managing Director for Dutch Trade Body NOGA / Managing Consultant Quod Bonum

Carl Fredrik Stenstrøm – Secretary General, Norwegian Trade Association for Online Gambling (NBO)

The inadequacies in Norsk Tipping’s handling of the Eurojackpot are indicative of broader issues with gambling monopolies, argue leaders from Nordic online gambling associations. They advocate for stricter regulations to ensure these entities can be held accountable.

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