Norsk Tipping, a long-standing pillar of gambling in Norway, is currently experiencing one of the most serious crises in its history. Between damning audits, major technical errors and record financial penalties, the state operator is seeing its credibility falter.
A crisis of trust hits Norsk Tipping
For several months now, the Norwegian national lottery company, Norsk Tipping, has been going through an unprecedented crisis. Recent audit reports, conducted by PwC and KPMG, have highlighted profound flaws in its management systems, verification processes and governance. Several major incidents have led to incorrect notifications of winnings, biased draws, incorrect payments and even the inability of some players to self-exclude from gambling. The result: numerous financial penalties, the resignation of its CEO, and above all, a serious erosion of public trust.
But today, while management claims it wants to resolve these issues, the question remains: have the errors been definitively overcome, or is this simply a cosmetic fix in a structurally vulnerable system?
When innovation takes precedence… at the expense of quality
The investigation conducted by PwC focused on Norsk Tipping’s three main lottery products (Lotto, Vikinglotto and Eurojackpot) and concluded that the operator had too often prioritised innovation and the rapid launch of new services at the expense of quality, control and maintenance.
According to the report, this approach led to a gradual dilution of operational routines: roles and responsibilities were not clearly defined, supplier control remained inadequate, and the handling of discrepancies (bugs, anomalies) lacked rigour. In this context, weaknesses in the control framework and failures in the supervision of service providers ultimately led to major technical errors.
The result: unfair draws, incorrect prize notifications, illegal payments — all serious errors for an operator whose essence is trust.
One of the most spectacular cases concerns the Eurojackpot draw on 27 June 2025: approximately 47,000 players were wrongly notified that they had won substantial sums. The poorly configured currency conversion system had multiplied the amounts instead of dividing them. This malfunction led to the resignation of former CEO Tonje Sagstuen.
But that’s not all. In 2025, a series of errors accumulated: a bug prevented some self-excluded players from blocking their accounts (a fine of NOK 36 million), an erroneous payment of NOK 25 million to a player on the online casino platform, as well as draws biased in favour of groups or cooperatives, giving members of these groups an unfair advantage.
To date, the cumulative fines imposed exceed NOK 110 million — an amount that illustrates the extent of the control deficit.
Weak governance and unclear responsibilities
The audit conducted by KPMG points not only to technical problems, but above all to a lack of clear leadership, an inability to identify and manage technical risks, and unclear governance with poorly defined responsibilities within the organisation.
The report highlights numerous serious deficiencies, and the board of directors, chaired by Sylvia Brustad, has committed to playing an active role in implementing corrective measures.
“The deficiencies are numerous and serious, and the board of directors will actively participate in implementing the measures recommended by KPMG. We are already working on many of them, as PwC has highlighted many of the same weaknesses.”
The conclusion is clear: these are not isolated incidents, but symptoms of a weakened, poorly organised system, where the pressure to innovate has gradually eroded operational discipline.
Emergency measures and reorganisation
Faced with the scale of the scandal, Norsk Tipping reacted quickly. In autumn 2025, the company launched a comprehensive recovery plan: implementing new development and testing procedures, strengthening technical and quality teams, reorganising governance, and strengthening supplier oversight. Twenty-two of the 25 recommendations made by KPMG are currently being implemented. The company says it wants to restore confidence.
Interim CEO Vegar Strand said:
“We are now working hard to put the problems behind us, and we are on the right track. Of the 25 measures proposed by KPMG, we are currently working on 22 of them. This will be demanding for the entire organisation, but it is absolutely necessary to strengthen quality and restore confidence. We did not wait for the final report to take action, and no one in our company doubts that this work is a priority. We must deliver high quality and avoid mistakes in order to earn the trust of our customers. The work is well underway, but there is still much to be done.”
Some measures had already begun in May 2025: nearly 150 employees were redeployed to stabilise operations, new developments were temporarily suspended, and automated controls were introduced to reduce human error.
A wake-up call for the gaming industry
Beyond Norsk Tipping, this case serves as a warning to the entire sector — especially in countries where state operators or monopolies control the market. When the race for innovation and new launches overshadows the fundamental needs for quality, transparency and governance, the risk is not only technical: it becomes systemic.
According to industry representatives, this case is a prime example of what happens when a monopoly is considered ‘safe’ without ever being challenged. It is a stark reminder that even the most stable structures must remain constantly vigilant.