On October 6, 2025, an audit conducted by PwC revealed that the Norwegian state monopoly gambling operator Norsk Tipping faced a series of technical and regulatory mishaps due to its emphasis on innovation and product development. This strategic choice reportedly led to negligence in quality control and internal mechanisms, culminating in multiple operational lapses.
In the past year, the Norwegian gambling regulator Lotteritilsynet has imposed several fines on Norsk Tipping for infractions of the Gambling Act and other gambling regulations. These include violations of self-exclusion protocols and incorrectly announcing winners for national prizes in the Eurojackpot and Superdraw over several years. Recently, another fine was levied following an error in the Superdraw on April 19, where 52 incorrect high-prize winners were announced. Furthermore, a potential fine of up to NOK 10 million is under consideration for the Eurojackpot draw on June 27, where the announced prize amounts were significantly inflated compared to the actual payouts.
The issues prompted Norsk Tipping’s board to commission PwC to evaluate its main lottery products: Lotto, Vikinglotto, and Eurojackpot. PwC’s findings highlighted a misallocation of resources, with a disproportionate focus on innovation at the expense of quality and control. The report noted that internal maintenance and control were occasionally relegated to a lower priority in favor of technological progress. It also identified issues with leadership clarity and accountability, describing the division of responsibilities within the organization as “unclear” and oversight of suppliers as “insufficient.”
In response to these failures, significant changes have been initiated at Norsk Tipping. Since May, over 150 employees have been redirected to stabilize existing systems. The company has introduced stricter controls within lottery operations, transitioning from manual checks to automated systems to mitigate human error. Additionally, under new leadership, Norsk Tipping has conducted a comprehensive review of its processes, implementing 300 quality improvements.
Interim CEO Vegar Strand, who took over following the resignation of former CEO Tonje Sagstuen in June, emphasized the seriousness with which Norsk Tipping regards the report’s findings. Strand noted the company’s commitment to overhaul its operations: “We take the report very seriously. It’s important once again to apologize to our customers who have been affected by these errors. Even though a lot works well, the report shows that we have had too many vulnerabilities. We’re fixing that. Every stone will be turned to ensure we both learn from our mistakes and build a new and better Norsk Tipping.”
Board member Sylvia Brustad echoed this sentiment, recognizing both the need for improvement and the steps already taken: “The report shows where we need to improve, but also that important measures were implemented over seven months ago. The board takes this extremely seriously and will closely follow the ongoing work. We are confident that the company has learned from its mistakes and the improvement efforts will lead to a new and stronger Norsk Tipping in the future.”
A separate review by KPMG, which focused on the Eurojackpot draw error on June 27, provided further insight into the operational challenges faced by Norsk Tipping. The review did not find any absent procedures but highlighted a gradual erosion of routines over time. “There does not appear to be a lack of routines per se, but rather these have gradually been diluted and weakened operationally over time,” it stated, reiterating concerns about an excessive focus on “innovation, speed and performance” at the expense of control and quality assurance.
While Norsk Tipping’s push for innovation and product development intended to modernize its offerings and enhance customer engagement, it inadvertently led to critical lapses in operational integrity. This situation underscores the delicate balance companies must maintain between pioneering new developments and preserving robust quality control systems.
Critics argue that the heavy focus on innovation might have blinded Norsk Tipping to the foundational aspects of its operations, which are crucial for maintaining trust and credibility in the gambling sector. With the gambling industry facing increasing scrutiny and regulatory pressure worldwide, the challenges faced by Norsk Tipping serve as a cautionary tale for other operators considering similar strategic pivots.
However, supporters of Norsk Tipping’s strategy point out that innovation is vital for companies to stay competitive in the fast-evolving gaming industry. They argue that the company’s recent overhaul of its processes and the commitment to rectify past mistakes demonstrate a proactive approach to risk management and quality improvement.
As Norsk Tipping works to rebuild its reputation, the industry will be closely watching to see how effectively it can implement the recommended changes and restore confidence among its players and regulatory bodies. The company’s experience highlights the importance of maintaining a balance between innovation and operational integrity in the highly regulated world of gaming and gambling.
