State-owned gaming operator Norsk Tipping has pledged sweeping improvements to its internal controls following a series of errors in its lottery operations that led to regulatory fines and public criticism.

Accounting firm PwC, commissioned by the company’s board, has completed a comprehensive review of Norsk Tipping’s internal control systems for its largest lottery products; Lotto, Vikinglotto and Eurojackpot. 

PwC’s review highlights three main shortcomings:

  • Too much emphasis on innovation and product development at the expense of quality and control.
  • Unclear leadership and division of responsibility.
  • Insufficient follow-up of external suppliers.

The report notes that long periods without major incidents may have caused a cultural shift toward speed and innovation over maintenance and oversight.

Despite the criticism, PwC acknowledged that Norsk Tipping maintains an extensive control framework and has already begun addressing weaknesses.

Norsk Tipping board chair Sylvia Brustad said the findings confirm that corrective action was necessary.

“The report shows clearly where we need to improve, but also confirms that important measures were initiated more than seven months ago,” said Brustad. “The board takes this very seriously and will follow progress closely. We are confident the company has learned from its mistakes and will emerge stronger.”

Norsk Tipping acting CEO Vegar Strand, who took over after Tonje Sagstuen’s resignation in June, apologized to customers affected by the errors.

“Although much of our operation functions well, the report reveals too many vulnerabilities. We are cleaning this up – every stone will be turned to ensure we learn from our mistakes and build a better Norsk Tipping,” he said.

A separate report by KPMG, also commissioned by the board, examined the serious errors in the Eurojackpot game, in which Norsk Tipping published incorrect prize levels that were too high.

KPMG’s findings echo PwC’s conclusions, describing a gradual erosion of routines and oversight.

“It does not appear to be a lack of formal procedures, but rather that they have been diluted and weakened over time through repeated organizational changes, shifting priorities, and staff turnover,” the report states.

Both firms conclude that innovation and speed were prioritized too heavily over quality assurance and control.

Norsk Tipping launched a major quality improvement program earlier this year to uncover and prevent further errors. In May, the company reassigned over 150 employees – normally engaged in development work – to focus exclusively on strengthening operational processes and quality control.

Among the measures implemented were automated verification procedures, enhanced supplier oversight, and external reviews of critical lottery processes. In total, the company says it has completed around 300 improvement initiatives.

As part of its internal review, Norsk Tipping has identified additional historical errors and voluntarily reported them to the Norwegian Gambling Authority (Lotteritilsynet), which could result in a further NOK 25 million fine. Several other cases are still under review.

Both PwC and KPMG stressed that Norsk Tipping has the foundation to rebuild confidence, provided management sustains its focus on governance and quality.

“The company’s recent steps show clear intent to correct course,” PwC concluded. “The challenge now is to ensure these measures are embedded into long-term operational culture.”

PwC’s report can be downloaded here [Swedish]

KPMG’s Eurojackpot report can be downloaded here [Swedish]