Norwegian Gambling Authority investigates Norsk Tipping minor funds transfer
The Norwegian Gambling Authority has requested answers from Norsk Tipping after it was given a tip-off that a minor transfered money to the platform.
In a letter to Norsk Tipping, dated 15 May, the Norwegian Gambling Authority has asked for further details on an incident in which a minor had placed a large deposit in the betting service.
The letter follows a tip-off from a bank to the Norwegian Gambling Authority that it had recorded a large amount of money being transferred from a minor to Norsk Tipping. Gamblers must be aged 18 or over to legally place bets on Norsk Tipping’s platform.
The Norwegian Gambling Authority met with Norsk Tipping on 13 May. The authority stated that it currently does not believe the underage user had founded a customer relationship with Norsk Tipping.
“The information so far indicates that there are customers who lend or share their customer account with persons under the age of 18 and that it is not the case that minors have been able to establish customer relationships with Norsk Tipping,” the Norwegian Lottery Authority stated in a release.
Sharing accounts with a minor is a clear breach of Norsk Tipping’s terms and conditions.
However, the watchdog states the violation in this case could extend to the Gambling Act, associated regulations and Norway’s Money Laundering Act.
“It is too early to determine what has happened. We will investigate the matter further and have asked Norsk Tipping for more information,” Norwegian Gambling Authority Department Director Tore Bell said.
Norsk Tipping requested to submit further details
The Norwegian Gambling Authority has asked Norsk Tipping to answer eight questions in order to gather information on the underage funds transfer and if it has wider implications.
These include when the payment solutions for Vipps and Apple Pay were introduced, as well as what the risk assessments associated with both payment systems are.
Pointedly, it has asked Norsk Tipping how it assesses Vipps and Apple Pay against section seven of the Gambling Act. This requires the operator to have appropriate control measures in place that reveal abuse of customer relationships.
It has asked the same about Vipps and Apple Pay in relation to the Money Laundering Act and if Norsk Tipping knows if the funds transferred belonged to the registered customer.
The Norwegian Lottery Authority noted that, since 1 January 2024, Norsk Tipping has received 21 tips on cases that were similar to the one the bank raised with the Norwegian Gambling Authority.
It has asked Norsk Tipping if it considered contacting the authority about these 21 tip-offs and if it has followed up on each case.
Norsk Tipping has been given two weeks to respond to the Norwegian Gambling Authority’s request for further information.
Last year, the operator was threatened with a fine of up to NOK36 million ($3.2 million) for preventing players from self-excluding from their gambling accounts.
According to Norsk Tipping, the error arose during an update of its iOS software on 16 January. This update subsequently prevented the self-exclusion tool on its native app from working as it should.