Norwegian Gambling Authority investigates Norsk Tipping transfer

Norsk Tipping Under Scrutiny for Underage Funds Transfer

The Norwegian Gambling Authority has issued an urgent request for information to Norsk Tipping concerning a suspected funds transfer involving a minor. This comes in light of a tip-off indicating that a significant deposit was made to the platform by someone under the legal gambling age.

In a formal communication dated May 15, the Authority sought clarification on an incident where a minor reportedly deposited a large sum into this betting service. Under Norwegian law, individuals must be at least 18 years old to legally place bets on Norsk Tipping’s platform.

Following a meeting with Norsk Tipping on May 13, the Norwegian Gambling Authority conveyed that initial investigations suggest that the underage user did not establish a direct customer relationship with the betting operator. Rather, it appears that some customers may be sharing their accounts with minors, which constitutes a direct violation of Norsk Tipping’s terms and conditions.

“Preliminary findings suggest customers may be lending or sharing their accounts with individuals under 18,” stated the Norwegian Lottery Authority in a public release. “This raises critical concerns regarding adherence to both the Gambling Act and Norway’s Money Laundering Act.”

While the exact circumstances are still unclear, the Authority is intensifying its inquiry. “We are in the early stages of this investigation,” noted Tore Bell, Department Director at the Norwegian Gambling Authority. “We have requested additional information from Norsk Tipping to ascertain the full extent of the situation.”

Norsk Tipping Required to Provide Detailed Information

The Norwegian Gambling Authority has presented Norsk Tipping with a series of eight questions aimed at unraveling the specifics surrounding the underage funds transfer and assessing its broader implications.

• When were payment solutions like Vipps and Apple Pay introduced?
• What risk assessments have been conducted for these payment systems?
• How does Norsk Tipping evaluate Vipps and Apple Pay against Section 7 of the Gambling Act, which mandates stringent control measures to detect abuses of customer relationships?
• Has Norsk Tipping inquired whether the transferred funds belonged to the registered customer?

Additionally, the Norwegian Lottery Authority revealed that since January 1, 2024, a total of 21 similar tip-offs have been reported to Norsk Tipping. The Authority has requested information on whether the operator chose to contact the regulatory body regarding these alerts and what follow-up actions were taken for each case.

Norsk Tipping has been granted a two-week deadline to respond to the Norwegian Gambling Authority’s comprehensive query.

It is noteworthy that the operator faced potential penalties last year, with fines reaching up to NOK 36 million (approximately $3.2 million) for inadequacies in allowing players to self-exclude from their gambling accounts. This issue arose from a software update on January 16, which inadvertently compromised the functionality of the self-exclusion tool on their iOS application.

This ongoing situation underscores critical issues surrounding underage gambling and accountability in the digital payment landscape within the gambling industry. As the investigation proceeds, it highlights the need for stringent measures to ensure compliance with legal standards and protect vulnerable individuals from gambling-related harm.