Norwegian authorities investigate underage gambling at Norsk Tipping, raising concerns about potential money laundering and customer verification issues.
Key Takeaways:
- Norwegian Lottery Authority received 21 tips about minors accessing Norsk Tipping accounts
- Investigation focuses on payment solutions and compliance with Money Laundering Act
- Norsk Tipping faces scrutiny over customer verification and potential negligence
Underage Gambling Probe Targets State-Owned Operator
The Norwegian Lottery Authority has launched an investigation into Norsk Tipping, the state-owned gambling operator, following reports of underage individuals accessing casino accounts. The probe was initiated after allegations surfaced that a ‘large amount of money’ had been taken from a minor’s bank account by the casino.
Early Findings and Ongoing Investigation
Tore Bell, Department Director at the Norwegian Lottery Authority, stated that it is ‘still too early to determine what has happened.’ Initial findings suggest that minors have been accessing pre-established accounts belonging to older friends or family members.
Legal Scrutiny and Key Questions
Senior Legal Counsel Advisors Anya There Marhus and Monica Alisøy Kjelsnes have addressed a letter to Norsk Tipping as part of the investigation. The letter contains nine critical questions, including:
1. ‘You have received tips about 21 cases related to this issue since 1 January 2024. Did you consider notifying the Norwegian Gambling Authority about this?’
2. ‘When was the payment solution for Vipps and Apple Pay introduced, and what risk assessments were made in this regard?’
3. ‘How do you assess these payment solutions against the requirements of the Money Laundering Act when you do not know whether the funds belong to the registered customer?’
These inquiries highlight concerns not only about underage gambling but also potential violations of money laundering regulations and customer verification procedures.
Potential Consequences
While it is unlikely that Norsk Tipping would lose its license as a state-owned operator, the company could face penalty fees if found to be negligent in its operations. The operator has already had at least three discussions with the Norwegian Lottery Authority on this matter, dated May 8, 9, and 13.
Timeline and Previous Issues
Norsk Tipping has been given two weeks to respond to the regulator’s questions. This investigation follows another probe launched earlier this year when the Norwegian Lottery Authority discovered that Norsk Tipping had been drawing incorrect lottery winners for years.
Implications for the Gambling Industry
This case underscores the importance of robust age verification systems and compliance with anti-money laundering regulations in the gambling sector. As payment technologies evolve, operators must ensure that their systems can effectively prevent underage gambling and detect potential financial crimes.
The outcome of this investigation could have far-reaching implications for how online casinos and gambling operators implement customer verification processes and handle digital payment solutions. It serves as a reminder that even state-owned operators are not immune to regulatory scrutiny and must maintain the highest standards of compliance and responsible gambling practices.
