SBC News Voice of the Sports Betting Industry
Norway’s state operator, Norsk Tipping, has been approached by the national regulator, Lotteritilsynet, over a potential breach of underage policies.
In a letter dated 15 May, Anya Therese Markhus and Monica Alisøy Kjelsnes – two of Lotteritilsynet’s legal advisors – requested answers to a total of nine questions relating to a series of reported incidents where minors were found to be engaging with Norsk Tipping.
The gambling authority was tipped off by a bank that had noticed “a large total amount” being transferred from a bank account of a person under 18, which flowed into a customer account registered with Norsk Tipping over a period of one year.
While the Norsk Tipping account was not registered under the underage person’s name, the regulator deduced that this is most likely a case where someone has lent his gambling account details to the minor.
A definitive proof of that would not only lead to a termination of the player’s account for breaching Norsk Tipping’s customer relation policies, but it would also spell trouble for the state operator itself, potentially leading to Gambling Act and Money Laundering Act violations.
Norsk Tipping has now been given two weeks to answer a set of nine questions, which mostly focus on the operator’s financial risk checks and how it ensures that its customer policies are not being abused.
Until these are answered and the investigation continues, “it is too early to determine what has happened” according to Tore Bell, Department Director at the Norwegian Gambling Authority.
Potential outcomes
If and when wrongdoing has been found, however, Lotteritilsynet has several avenues to enforce regulatory action.
For one, albeit the lightest measure, the regulator can issue a formal order for Norsk Tipping to immediately correct the violation by strengthening its age verification policies.
Another procedure would involve the implementation of daily fines until all compliance shortfallings have been addressed and dealt with.
Moving into the more serious repercussions, Norsk Tipping may be given a significant financial sanction based on a percentage of its GGR if Lotteritilsynet determines that underage gambling has occurred as a result of negligence.
The most severe measure would be the suspension or revocation of Norsk Tipping’s license, although this is unlikely due to Norsk Tipping being a state-owned operator.
Regardless, if an underage gambling violation is eventually found, this would threaten the operator’s existence in other ways. Norsk Tipping’s future is already hanging by a thread, with increasing political pressure calling for its abolition in favour of a free licensing regime. A violation of such significance would only add more negative attention.
