Norwegian gambling regulator Lotteritilsynet has announced a major penalty against state-owned betting company Rikstoto. The company faces a potential fine of six million kroner after a technical error allowed hundreds of customers to gamble beyond their loss limits.
The system failure affected 806 customers over nearly three years. These players were able to wager amounts far exceeding their monthly loss boundaries. The loss limit system is supposed to restrict how much money Norwegian horse racing bettors can lose each month.
Norwegian gambling regulations establish a default monthly loss limit of 20,000 kroner. Players can also set their own, lower limits if they choose. This system represents a cornerstone of Norway's responsible gambling framework.
The technical error occurred during a system update in December 2022. It remained undetected until a customer reported the issue in September. During this period, seven customers gambled more than 100,000 kroner beyond their established limits. One individual exceeded their personal limit by 643,448 kroner.
Tore Bell, director of gambling regulation at Lotteritilsynet, described the situation as very serious. He noted that many affected customers were already classified as medium or high-risk for problem gambling. Some had actively used self-exclusion tools and pause functions to control their betting habits.
The total amount wagered beyond established limits reached approximately four million kroner. Rikstoto has since refunded these excess amounts to affected customers. However, regulators consider this insufficient mitigation given the potential harm to vulnerable individuals.
This penalty comes just two weeks after Rikstoto received another fine for anti-money laundering violations. The company faces a two million kroner penalty plus daily fines until compliance issues are resolved. Combined with the latest penalty, Rikstoto confronts eight million kroner in potential fines within a fortnight.
Rikstoto CEO Camilla Garmann acknowledged the seriousness of both situations. She stated the loss limit issue received highest priority within the organization. The company has strengthened system testing procedures to prevent similar errors. Garmann emphasized that the technical nature of the loss limit failure made detection difficult.
The consecutive penalties against Rikstoto occur amid broader scrutiny of Norway's state gambling operators. Rikstoto's counterpart Norsk Tipping has faced substantial penalties recently, totaling 119 million kroner. These developments have sparked discussions about potentially merging the two state gambling companies.
Bell acknowledged increased regulatory focus on state operators but noted many issues come to light through self-reporting or media attention. The situation raises questions about whether problems are worsening or simply receiving more attention.
This case highlights the critical importance of technical reliability in gambling harm prevention systems. When automated safeguards fail, the consequences for vulnerable individuals can be severe. The incident also demonstrates regulatory willingness to penalize state-owned operators despite their protected market position.
Norwegian gambling regulation maintains strict controls compared to many European markets. The country prohibits international gambling operators from targeting Norwegian consumers. This protectionist approach aims to channel gambling through state-controlled entities that implement strong consumer protections. Recent penalties suggest even these privileged operators face consequences for compliance failures.