Norwegian regulator probes underage betting case involving Norsk Tipping

Norway’s state-run gambling operator Norsk Tipping is under regulatory scrutiny following reports that a large amount of money was transferred to its platform from the bank account of a minor. The Norwegian Gambling Authority (NGA) has launched an investigation into the incident, questioning whether the operator’s payment systems and customer verification processes are compliant with national laws.

A letter dated May 15 from Senior Legal Counsel Advisors Anya There Marhus and Monica Alisøy Kjelsnes formally requests that Norsk Tipping respond to a series of queries regarding the incident. The case came to light after a bank alerted the regulator about a sizable deposit made by a minor to the platform, which is only legally accessible to users aged 18 and over.

The authority has indicated that the underage individual in question did not establish an account directly with Norsk Tipping but may have accessed the platform through someone else’s credentials, an act that constitutes a clear breach of the operator’s terms and conditions.

“The information so far indicates that there are customers who lend or share their customer account with persons under the age of 18 and that it is not the case that minors have been able to establish customer relationships with Norsk Tipping,” the NGA said in a statement.

Despite this, the violation could extend beyond internal policy to breaches of Norway’s Gambling Act, associated regulations, and the Money Laundering Act. Tore Bell, Department Director at the NGA, stated that the matter remains under investigation. “It is too early to determine what has happened. We will investigate the matter further and have asked Norsk Tipping for more information,” he said.

The letter to Norsk Tipping includes nine key questions. Among them is whether the company considered alerting the NGA about the 21 similar incidents it has reportedly received tips about since January 1, 2024. Another critical question addresses the timeline and risk assessments conducted when introducing digital payment platforms like Vipps and Apple Pay.

Perhaps the most probing of the questions asks, “How do you assess these payment solutions against the requirements of the Money Laundering Act when you do not know whether the funds belong to the registered customer?”

This investigation also revisits earlier regulatory concerns. The Norwegian Lottery Authority had previously flagged Norsk Tipping for drawing incorrect lottery winners for an extended period and, in a separate case last year, nearly imposed a fine of NOK36 million ($3.2 million) after a software update on January 16, 2024, disabled the operator’s self-exclusion function on iOS devices.

The NGA specifically asked the operator to explain how its systems detect abuse of customer relationships under Section 7 of the Gambling Act and what safeguards are in place to prevent unauthorized access via services like Vipps and Apple Pay.

Three separate meetings were held between the NGA and Norsk Tipping on May 8, 9, and 13, ahead of the formal letter requesting answers. Norsk Tipping now has two weeks to respond to the authority’s inquiries.