Norsk Tipping paid out a player millions and must pay the price for not following AML due process. [Image: Shutterstock.com]
Norwegian gambling operator Norsk Tipping must pay a hefty price for failing to follow due process when paying out a player. The Lotteries and Foundations Authority (LFA), Norway’s gambling regulator, has issued Norsk Tipping with a $427,000 fine over the anti-money laundering (AML) failings.
A Norsk Tipping player hit it big while playing KongKasino in March this year, securing a prize of $2.25m. The operator then paid out the player, but there are certain rules that it should have followed beforehand. An operator must not provide winnings right away or pay out an online casino win of more than $9,500.
a “huge” and “wrongful payment” that could have gone to a player who is already suffering from a gambling addiction
The regulator described it as a “huge” and “wrongful payment” that could have gone to a player who is already suffering from a gambling addiction or has the potential to develop one as a result.
In this instance, Norsk Tipping was able to retrieve the cash back from the player. But there have been similar cases of mistakes like this, highlighted by the company’s internal departments. Nonetheless, the operator argued that these were isolated and honest mistakes rather than a systemic error.
In response, the LFA stated it had decided to uphold the penalty because Norsk Tipping had “inadequate” processes in place to prevent the mistakes.
