For a regulated betting operator, each accepted bet must be accompanied by the payment of the stake. That was one of the key considerations made during the Norwegian Gambling Authority’s review. Lotteritilsynet wanted to determine whether the unpaid wagers violated gambling rules, since free bets and credit-style betting are prohibited in Norway.
Another question that the regulatory body considered was whether prize pools were calculated as if the unpaid stakes had been contributed. In such a case, the problem may go beyond the customers whose bets were accepted without payment. The error could have affected payouts for regular paying players in the same pools.
More Than 23,000 Bets Went Through
Based on the industry media regarding the February event, there were a total of 5,158 customers involved. Between February 3 and 5, they reportedly placed 23,716 bets that were processed but incurred no cost.
The bets were neither prevented nor considered unsuccessful. They ended up in the usual betting pools, among which were products like Norway’s V75 and Sweden’s V86.
As of now, Norsk Rikstoto has yet to disclose its total loss. Initial estimates in the incident coverage put the total value of the unpaid stakes at around NOK 1.2 million to NOK 2.4 million, or approximately €100,000 to €200,000. The total financial impact may be larger when winnings, reinvested stakes, and pool calculations are taken into account.
Players Were Not Charged Later
Rikstoto decided against the recovery of the unpaid stakes post-event. According to the operator, recovering money from the customers after an event could have caused some players to exceed their loss limits.
While that might be solving one problem for Rikstoto, it created another one altogether. For some customers, it was possible to place bets risk-free and keep any winnings attached to those bets.
A Second Incident Added Pressure
The mistake in February was not an isolated case. A similar incident reportedly happened on March 25.
The issue of when the notice was submitted raises new worries. The Gambling Authority only received notice on April 15, despite the requirement that such occurrences must be reported within 72 hours.
In its subsequent letter dated April 20, the authority questioned Rikstoto regarding the late reporting of the incident, loss limits, and whether all the previous queries related to the failure experienced in February had been addressed.
Platform Change Now Faces Scrutiny
These issues arose following the transition to a new betting platform provided by Betmakers. This does not necessarily mean that the supplier was responsible for the errors. However, it puts the platform migration under closer scrutiny.
For Norsk Rikstoto, the financial loss incurred might not be the most pressing concern. Rather, it’s whether the company had sufficient internal controls in place to detect and mitigate issues before bets made it into the live pools.
Bottom Line
In regulated betting, technical issues can transform into governance problems rapidly. Should the processes for collecting stakes, limiting losses, and reporting be all affected simultaneously, the operator must demonstrate not only that the glitch has been resolved. It might also have to prove that the control process around it still works.
