Norsk Tipping Under Scrutiny Over Alleged Underage Fund Transfers
The Norwegian Gambling Authority has initiated an investigation into Norsk Tipping following a whistleblower report concerning an underage individual transferring money to the gaming platform.
In a formal communication dated May 15, the authority requested detailed information regarding an incident where a substantial deposit was made by a minor through the betting service.
The inquiry stems from a bank’s alert to the Norwegian Gambling Authority, highlighting that a significant sum was transferred from a minor to Norsk Tipping, despite the platform’s policy requiring users to be at least 18 years old to gamble.
During a meeting on May 13, the authority conveyed its initial position, stating it does not currently believe that the underage user established a direct account with Norsk Tipping.
According to the Norwegian Lottery Authority, “Preliminary evidence suggests that accounts may have been shared or lent to minors rather than directly set up by them.” This situation, however, breaches Norsk Tipping’s established terms and policies.
Despite this, the authority hinted that the implications could extend beyond internal regulations, potentially infringing upon the Gambling Act and Norway’s Money Laundering Act.
“It is premature to conclude the specifics of the situation. We will delve deeper into this case and have requested additional information from Norsk Tipping,” commented Tore Bell, the department director at the Norwegian Gambling Authority.
Gathering Insights on Underage Transfers
The Gambling Authority has compiled a list of eight inquiries that Norsk Tipping must address to clarify the circumstances surrounding the underage transfer and ascertain if broader issues exist.
Some of the questions pertain to the introduction dates of payment solutions like Vipps and Apple Pay, as well as the risk assessments associated with these methods. Additionally, the authority is eager to understand how Norsk Tipping evaluates these payment systems in relation to section seven of the Gambling Act, which mandates that operators implement adequate controls to identify any potential misuse of customer accounts.
The inquiry also seeks clarification on whether Norsk Tipping can confirm that the transferred funds originated from the registered customer, as well as its awareness of the implications of these transactions under the Money Laundering Act.
Notably, the authority revealed that, since January 1, 2024, it has received 21 similar reports from various sources, prompting questions over why Norsk Tipping did not proactively inform the authority about these incidents and how each case was handled.
Norsk Tipping has been granted a two-week window to provide the required information to the Gambling Authority.
In a related context, the operator faced potential penalties last year amounting to NOK 36 million ($3.2 million) due to issues surrounding player self-exclusion capabilities. Norsk Tipping attributed this failure to a glitch during an iOS software update on January 16, which compromised the functionality of the self-exclusion tool within its app.