30,000 players misled with inflated winnings, triggering trust crisis and regulatory probe
The Norwegian Lottery Authority has officially ruled that Norsk Tipping, the country’s state-owned gaming operator, violated the Gambling Act after sending incorrect SMS notifications to tens of thousands of players. The error, which falsely declared winnings 10,000 times higher than the actual amounts, has now escalated into a full-scale regulatory investigation and led to the abrupt resignation of CEO Tonje Sagstuen.
System Glitch Multiplied Winnings by 10,000
The issue, which came to light earlier this year, involved approximately 30,000 players who received fraudulent notifications suggesting they had won massive lottery prizes. The root cause was a software miscalculation: instead of converting winnings from euros to Norwegian kroner using a correct conversion rate, the system mistakenly multiplied by 100 rather than dividing.
This meant relatively modest prizes appeared as life-changing jackpots in SMS alerts — an error that understandably sparked confusion, disappointment, and outrage across the player base.
Regulator: “Trust Has Been Damaged”
Speaking on the issue, Anya Therese Markhus, Senior Advisor at the Norwegian Lottery Authority, emphasized that trust is a cornerstone of regulated gambling:
“Norsk Tipping has violated the Gambling Act. People should be able to trust their games. The fact that several thousand players received a notice of excessive winnings is clearly harmful to that trust.”
In response, the Authority has initiated a comprehensive audit of Norsk Tipping’s core lottery operations, including Lotto, Eurojackpot, and Vikinglotto. The review will examine the entire player journey, from ticket submission to prize payout — a process that could take months given the scale and complexity of the games involved.
Leadership Fallout and Broader Operational Concerns
Following the error, Tonje Sagstuen, who had been with Norsk Tipping for over a decade, resigned immediately. The board of directors unanimously supported the decision, acknowledging the severe reputational damage the company has suffered under her watch.
This incident is not isolated. Norsk Tipping has been under increased scrutiny in recent years:
In 2024, it was revealed that the operator accidentally drew too many winners in several lotteries for years.
One player was mistakenly awarded KR25 million ($2.48 million).
Previous probes uncovered underage access to casino games operated by the company, another serious violation of Norway’s strict gaming regulations.
A Reckoning for Norway’s State Lottery Model?
As the monopoly license holder for gambling in Norway, Norsk Tipping is expected to meet the highest standards of operational integrity and consumer protection. This series of blunders has not only damaged public trust but may lead to calls for reform of how state-run gambling is overseen and whether additional technology safeguards and independent auditing should be required.
While the investigation is ongoing, it is clear that Norsk Tipping’s reputation has taken a significant hit. How it responds — and what actions the regulator recommends — may shape the future of public trust in Norway’s regulated gambling environment.
