Norsk Tipping innovation priority led to lottery failings, audit report finds
Summary
PwC’s audit of Norsk Tipping finds the operator prioritised innovation and new development over quality, control and maintenance, leaving weaknesses in its control framework and unclear leadership. Those failings contributed to multiple recent lottery errors that have resulted in large regulatory penalties and reputational damage.
The review covered major products including Lotto, Vikinglotto and Eurojackpot. PwC highlighted unclear division of responsibilities, insufficient supplier follow-up, and a dilution of operational routines amid repeated structural changes. KPMG’s separate look at a Eurojackpot error echoed these concerns.
Key Points
- PwC concluded Norsk Tipping prioritised development and innovation “at the expense of quality and control”.
- Weaknesses included unclear roles and responsibilities, insufficient supplier oversight and inconsistent handling of deviations.
- Multiple technical and operational errors led to fines and potential penalties totalling well over NOK110m to date.
- The operator has redirected resources since May (over 150 staff) to stabilise operations and postponed some development work.
- Norsk Tipping has implemented around 300 quality measures, increased automated checks, and brought in external leadership to review critical processes.
- Former CEO Tonje Sagstuen resigned in June; Vegar Strand is acting CEO and has apologised publicly.
- KPMG found routines had been diluted over time and that the organisation had repeatedly shifted priorities and personnel, weakening operational controls.
Context and relevance
This matters to anyone tracking gambling regulation, operator risk or technology governance. Norsk Tipping is Norway’s state lottery operator; systemic control failures there show how a focus on speed and innovation can create regulatory, financial and reputational exposure in highly regulated industries.
The case is a reminder for boards and executives to balance innovation with strong maintenance, clear ownership and supplier oversight. Regulators (Lotteritilsynet) have already levied significant penalties and more are possible, making this a live risk story for peers and suppliers across the sector.
Why should I read this?
Short version: if you run or supply tech to regulated gaming (or any regulated service), this is a big, practical red flag. PwC and KPMG both say the same thing — chasing new products without keeping the basics tight caused expensive mistakes. Read it to avoid the same trap.
