Norway fines Norsk Tipping $105K over anti-money laundering failures

Norway’s state gambling operator has been ordered to pay a NOK 1 million ($105,000) fine after regulators concluded it fell short of key anti-money laundering obligations.

In a decision dated Thursday (February 12), the Norwegian Lottery Authority (Lottstift) said Norsk Tipping violated several provisions of the Money Laundering Act. The findings come after a lengthy supervisory review carried out through 2025, culminating in a formal administrative penalty.

Regulators determined that the company’s systems were not strong enough to uncover and stop potential money laundering or terrorist financing, particularly when it came to identifying customers and tracking their activity over time.

The investigation covered a comprehensive sweep of the operator’s controls. Inspectors reviewed risk assessments, internal compliance routines, customer due diligence measures, transaction monitoring processes and reports sent to Norway’s financial intelligence unit. Authorities examined documents submitted between February and August 2025, ran sample checks in the spring and summer, and conducted on-site interviews in September.

Gambling regulator points out serious gaps in Norsk Tipping anti-money laundering customer controls

At the center of the ruling were shortcomings in how customers were assessed and monitored. According to the authority, Norsk Tipping failed to carry out proper risk classifications when players first opened accounts, except in cases involving politically exposed persons or individuals from high-risk jurisdictions.

The Authority found that Norsk Tipping’s practice was not in line with the ‘know your customer’ principle and that the company was not always able to implement risk-based measures in time to detect and prevent money laundering and terrorist financing.

Lottstift, the Norwegian Lottery and Foundations Authority

Instead of assigning risk at the outset, the company largely depended on customer behavior after accounts were already active. Regulators said that approach did not meet the law’s requirement for risk-based customer measures from the start of a relationship.

The authority also added that Norsk Tipping did not gather enough information about the intended purpose of each customer relationship. While customers agreed to standard account terms stating, the regulator said: “The purpose of the player account is deposits for the payment of games and the payout of prizes. Norsk Tipping may set a limit on deposits to the player account. Funds held in the player account do not accrue interest.” Officials said that language alone did not fulfill the legal obligation to understand the intended nature of the relationship.

Without that information in place, the company lacked the basis to apply enhanced checks where risks were higher, the decision explained. Although transactions were monitored and assessments documented, regulators said the absence of complete customer data and proper risk scoring undermined compliance with ongoing monitoring rules.

The authority described the breaches as both serious and prolonged. Norsk Tipping has been subject to the Money Laundering Act since 2018, yet key updates were not fully implemented until 2025, when a new compliance system was introduced.

The fine adds to mounting scrutiny of the operator. In recent years, the Lottery Authority has issued other multimillion-kroner penalties tied to technical flaws, lottery draw errors and Gambling Act breaches, including incidents that misled tens of thousands of players. Former chief executive Tonje Sagstuen also stepped down following high-profile mistakes.

Regulators acknowledged that Norsk Tipping has begun tightening its controls, including rolling out a new anti-money laundering system, introducing customer risk scoring, collecting KYC forms and reducing cash limits. The company has said addressing the gaps is its top priority and expects the work to be completed in 2026.

In deciding the penalty amount, the authority weighed the severity and duration of the violations along with the operator’s financial position. Norsk Tipping reported NOK 54,468 million in operating revenue in 2024 and equity of  NOK 485 million at year-end. The company has three weeks to appeal.

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