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Norsk Tipping Faces Potential $1 Million Fine After Eurojackpot System Error

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The Norwegian Lottery Authority has issued a notice of violation to Norsk Tipping, the state-owned national lottery operator, signaling a potential fine of up to NOK 10 million, roughly equivalent to $940,000 USD. This financial penalty stems from a significant system error in their Eurojackpot operations earlier in the summer of 2025. The fine, which represents approximately 0.1% of Norsk Tipping’s annual turnover, highlights the seriousness of the breach and has initiated a thorough review of the lottery’s operational integrity.

On June 27, the problem unfolded when approximately 47,000 participants were mistakenly informed they had won prizes that were significantly larger than their actual winnings. Among these, around 30,000 individuals received incorrect notifications via SMS or push alerts, leading to widespread confusion and disappointment.

Labeling the incident as a “serious breach of trust,” the Norwegian Lottery Authority stressed the legal obligation of gambling operators to ensure fair and transparent conduct of games. The error was linked to a flawed formula used to convert Euro cents into Norwegian kroner, where payouts were incorrectly calculated by multiplying instead of dividing. Although the mistake was corrected quickly and did not affect the draw’s validity, regulators criticized Norsk Tipping for failing to detect the issue during their testing phases or through existing internal controls.

Tonje Sagstuen, CEO of Norsk Tipping at the time, expressed deep regret over the incident, acknowledging the resultant frustration among the public. She understood the anger directed at the company, admitting that the criticism was justified and called the situation a clear breach of trust. She received numerous messages from individuals who had already made plans based on the erroneous prize notifications, including vacations, home renovations, and even apartment purchases. Following the revelation of the error, Sagstuen resigned from her position as CEO.

The incident adds to a growing list of compliance challenges faced by the state-owned operator. Among these is a glitch that allowed group players to enjoy significantly better odds of winning compared to solo players, leading to various complaints.

Other notable past issues include an incorrect casino payout totaling NOK 25 million (roughly $2.35 million USD), persistent technical glitches that prevented iPhone and iPad users from logging out of games, and longstanding errors in lottery draws which skewed winning odds in favor of cooperative players over several years.

In light of these repeated failings, the Lottery Authority has launched an extensive review of Norsk Tipping’s major gaming operations, including Lotto, Eurojackpot, and Vikinglotto, to safeguard the integrity and fairness of their offerings.

Critics argue that Norsk Tipping’s series of failures reflects a broader issue of inadequate oversight and technological lapses within the organization. They suggest that the state-run monopoly might be complacent due to its dominant market position, resulting in a lack of rigorous internal control mechanisms. These voices call for an overhaul of the company’s operational and technological frameworks to prevent similar occurrences in the future.

On the other hand, supporters of Norsk Tipping highlight the operator’s commitment to social responsibility and its contributions to public causes. They argue that while the mistakes are regrettable, the company’s swift response and willingness to take accountability demonstrate a dedication to addressing and rectifying its errors. Moreover, they emphasize that Norsk Tipping’s profits are reinvested into cultural, sports, and humanitarian projects, underscoring its role as a force for good in Norwegian society.

This ongoing scenario with Norsk Tipping serves as a reminder of the challenges faced by gambling operators in maintaining the delicate balance between technological advancement and operational reliability. The incident underscores the necessity of robust systems for error detection and the importance of maintaining public trust in national lotteries, which are often seen as more than just a recreational activity, but as an institution that supports community welfare.

As the comprehensive review progresses, Norsk Tipping will need to demonstrate not only improvements in its technological infrastructure but also in its internal processes to regain the confidence of its players and the authorities. The outcome of this investigation could have broader implications for how state-run lotteries operate and are regulated, potentially influencing policies and practices across the global gaming industry.