Norsk Tipping has begun implementing measures to address operational flaws identified in recent audits.
The company has rolled out actions covering 22 of the 25 recommendations made by consultancy firms KPMG and PwC.
In October, both firms published separate reports after a series of errors placed customers at risk and falsely informed them of winnings.
PwC’s primary conclusion was that Norsk Tipping had prioritized innovation over quality and control.
CEO Outlines Steps Taken
CEO Vegar Strand confirmed that several measures had already been put in place.
These include a thorough review of the company’s organisational model and culture.
The operator has also introduced clearer requirements and expectations for management roles.
Other measures focus on improved systems for developers and testers, mandatory guidelines for development, testing, and operation, and mechanisms to ensure compliance.
Strand added that a new supplier management system was now operational, featuring closer follow-up and stricter requirements for partners.
He also highlighted a strengthened senior management group and technical professional community as part of the company’s long-term strategy.
“On the Right Track”
Strand acknowledged the reports were a tough wake-up call but insisted Norsk Tipping was addressing the issues.
“We are now working purposefully to put the problems behind us, and we are on the right track,” he said.
“Of the 25 measures that KPMG has proposed, we are currently working on 22.
It will be demanding for the entire organisation, but it is absolutely necessary to strengthen quality and rebuild trust.
We’ve not waited for the final report to initiate measures, and no one at our company has any doubt that the work has the highest priority.
We must have high quality and avoid mistakes to earn the trust of our customers.
We are well underway with the job, but we still have a lot to do.”
Auditors Highlight Serious Shortcomings
KPMG criticised Norsk Tipping for deficiencies in technological management and understanding of technical risk.
This led to issues with technical competence, capacity, and clarity of roles.
The report also highlighted inadequate operational routines for development, testing, and operation.
“We believe that the high pace of launching new products and services over a long period of time has come at the expense of quality assurance of our own and external IT deliveries,” the report said.
Board chair Sylvia Brustad added that the board would actively ensure improvements are implemented.
“The shortcomings are numerous and serious, and the board will be an active party in the work to implement the measures recommended by KPMG,” she said.
“We are already working on many of them, since PWC pointed out many of the same weaknesses.”
Mounting Penalties
The report follows several penalties for Norsk Tipping’s operational errors.
The Eurojackpot draw mistakenly informed 47,000 players they had won higher prizes, prompting the resignation of former CEO Tonje Sagstuen.
Technical issues with Eurojackpot and Lotto led to a NOK46 million fine in September.
Another NOK36 million fine was issued in March after self-excluded players could not block themselves from accounts.
In 2024, a NOK2.5 million fine was imposed after a player received NOK25 million in incorrect winnings.
Further penalties may follow, raising questions about the state monopoly model in Norway.
Carl Stenstrom, chief of a trade body, said: “These are not isolated mistakes, they point to a long term pattern of governance failure.
And when a public monopoly stumbles at this scale, the consequences go far beyond operational mishaps.
They erode public confidence in an institution meant to act with exceptional responsibility.”
He added, “As a state-owned gambling monopoly, Norsk Tipping carries a special responsibility: safeguarding players, operating with integrity, and ensuring that profits flow back to society.”
