Norway’s state-operated gambling monopoly is once again facing intense regulatory scrutiny after the country’s Gambling Authority, Lottstift, initiated proceedings to impose financial penalties on Norsk Rikstoto, the exclusive horse racing betting operator.
The potential sanctions stem from multiple breaches of the Norwegian Money Laundering Act.
An audit conducted by Lottstift between February 6 and May 27, 2025, identified several significant failures in the operator’s AML protocols. Norsk Rikstoto now faces a potential fine of up to NOK 2 million (approximately £150,000), alongside an accruing daily penalty of NOK 50,000 until all compliance deficiencies are fully resolved.
The regulator’s investigation found that Norsk Rikstoto’s AML team is severely under-resourced and relies too heavily on manual workflows. Lottstift indicated that this lack of automation creates “great room for improvement” and exposes the organization to heightened risks of human error.
Furthermore, the audit revealed inconsistencies in customer risk assessments, with a lack of clear demarcation between initial risk monitoring and subsequent follow-up procedures. Lottstift has mandated that Norsk Rikstoto enhance its customer risk classification system and ensure this standardized process is applied uniformly across all business departments.
Internal risk management policies were also criticized, with the regulator demanding a thorough review to ensure alignment across all operational units. Documentation practices were another major concern identified by Lottstift.
Lottstift also criticized Norsk Rikstoto’s implementation of previous audit recommendations, noting that its follow-up reporting was both inconsistent and incomplete.
Lottstift Director Atle Hamar strongly criticized the operator’s handling of essential AML controls, stating that the shortcomings undermine the ethical expectations placed upon state monopoly operators.
In an official notice supporting the financial penalties, Tatyana Søreide Klepaker, Senior Legal Advisor at Lottstift, confirmed that the breaches warranted the fines.
This case compounds the existing criticism of Norway’s dual monopoly model, which includes both Norsk Rikstoto and Norsk Tipping. Norsk Tipping has also faced recent investigations for compliance failures related to AML and marketing. With Finland preparing to shift to a multi-license market by 2027, Norway is set to become the last Nordic nation to maintain a state monopoly, a model facing increased pressure due to recurring compliance issues and growing calls for liberalization.
Lottstift on Documentation:
“Both the review of sample checks and what we observed during on-site inspections have shown that there is a lack of a systematic approach to documentation and logging of implemented measures, assessments and choices. We saw that some customers/cases have better descriptions of the course of the case than others.”
Atle Hamar, Lottstift Director:
“They have deliberately set aside absolute legal requirements that should enable them to uncover and prevent money laundering. When they do not have good enough systems, the risk of them being exploited for money laundering increases. Money laundering is a serious social problem. We expect that a monopoly operator with over 170,000 players follows the law and has better control over how they will uncover and prevent money laundering.”
Tatyana Søreide Klepaker, Senior Legal Advisor at Lottstift:
“After a comprehensive assessment of the case… we find that a violation fine should be imposed. Our assessment is that Norsk Rikstoto has good financial capacity, and that imposing the violation fee will not be disproportionately burdensome for Norsk Rikstoto’s finances.”
