Norsk Tipping has begun work on addressing the operational faults flagged by auditors in a recent report, with the company having rolled out measures across 22 of the 25 recomendations made by the consultancy.

In October, KPMG and PwC published separate reports on the operator following a series of major errors that had put customers at risk and falsely informed players of winnings they didn’t actually have. The primary finding of PwC’s report was that Norsk Tipping had prioritised innovation and new developments “at the expense of quality and control”.

While Norsk Tipping is awaiting a final report into the issues, CEO Vegar Strand last week reported the operator had put in place several actions to address the concerns.

Among these measures is a “thorough review” of the organisational model and culture at the company.  Norsk Tipping has also committed to “clearer requirements and expectations” for management roles within the business.

Other confirmed measures include improved systems for developers and testers, in addition to mandatory guidelines for development, testing and operation, as well as mechanisms to ensure these are complied with.

Strand said the operator had put in place a new system for supplier management, including closer follow-up and stricter requirements for partners. Other changes include a strengthened senior management group and technical professional community. He said these measures would ensure the operator is “well equipped” to achieve its long-term goals.

Norsk Tipping ‘on the right track’

Speaking in the update, Strand said while there is no doubt the PwC and KPMG reports “hit hard”, Norsk Tipping was working to address the flagged issues.

“We are now working purposefully to put the problems behind us, and we are on the right track,” Strand said. “Of the 25 measures that KPMG has proposed, we are currently working on 22. It will be demanding for the entire organisation, but it is absolutely necessary to strengthen quality and rebuild trust.

“We’ve not waited for the final report to initiate measures, and no one at our company has any doubt that the work has the highest priority. We must have high quality and avoid mistakes to earn the trust of our customers. We are well under way with the job, but we still have a lot to do.”

Shortcomings ‘numerous and serious’

Within its report, KPMG criticised Norsk Tipping’s business procedures. It said “deficiencies” in technological professional management and the overall understanding of technical risk and complexity had led to issues with technical competence, capacity and understanding of roles and responsibilities.

This, it said, was in addition to “inadequate” operational routines in development, testing and operation.

“We believe that the high pace of launching new products and services over a long period of time has come at the expense of quality assurance of our own and external IT deliveries,” the report said.

Sylvia Brustad, chairwoman of Norsk Tipping, also commented on the changes happening at the company. She said the board would be an “active party” to ensure the improvements were properly rolled out across the business.

“The shortcomings are numerous and serious, and the board will be an active party in the work to implement the measures recommended by KPMG,” she said. “We are already working on many of them, since PwC pointed out many of the same weaknesses,” said chairwoman Sylvia Brustad.

Penalties mount up for Norsk Tipping

The report came after Norsk Tipping was issued several penalties in relation to some of the findings from KPMG and PwC.

The main failing that triggered the report related to the Eurojackpot draw, whereby 47,000 players were incorrectly notified that they had won excessively high prizes. This led to the resignation of then-CEO Tonje Sagstuen.

Among the other cases noted in the report was a technical failing for both Eurojackpot and Lotto, which led to a penalty fee of NOK46 million in September. Norwegian regulator Lotteritilsynet found players in cooperatives, gaming clubs and cooperative banks had a greater chance of winning than they should have had.

A separate penalty of NOK36 million was announced in March after a bug prevented self-excluded players from blocking themselves from their Norsk Tipping accounts. This followed a NOK2.5 million fine in 2024 after the company mistakenly paid a player NOK25 million in incorrect winnings.

Other penalties may follow, with the operator potentially facing further punishment over its conduct.

Industry stakeholders have said the repeated failings by Norsk Tipping prove the monopoly model should no longer exist in Norway.

Industry trade body chief Carl Stenstrom said of the operator’s response to the audit on Monday: “These are not isolated mistakes, they point to a long term pattern of governance failure. And when a public monopoly stumbles at this scale, the consequences go far beyond operational mishaps. They erode public confidence in an institution meant to act with exceptional responsibility.”

In a post on his Linked In page, he said: “As a state-owned gambling monopoly, Norsk Tipping carries a special responsibility: safeguarding players, operating with integrity and ensuring that profits flow back to society.”

 Norsk Tipping said the changes will leave the operator “well equipped” to achieve its goals.