Norwegian Lottery CEO Resigns After Million-Kroner Error Devastates Thousands

In a dramatic turn of events that has fundamentally shaken Norway’s state gambling monopoly, Tonje Sagstuen, CEO of state-owned Norsk Tipping, resigned following a catastrophic system error that falsely informed thousands of Eurojackpot players they had won life-changing sums. The coding blunder, which multiplied actual winnings by 10,000, triggered one of the most significant consumer confidence crises in Scandinavian gambling history while reigniting fierce political debates over Norway’s controversial state monopoly model.

The incident, occurring on Friday, June 28, 2025, transformed what should have been a routine lottery results announcement into a national scandal that reached the highest levels of government. Within hours, thousands of Norwegian citizens received notifications suggesting they had become instant millionaires, only to discover the cruel reality that their actual prizes were mere fractions of the amounts displayed.

The Million-Kroner Mirage: A Technical Catastrophe

On Friday evening, June 28, 2025, Norsk Tipping’s system catastrophically failed during the routine conversion of Eurojackpot winnings from euros to Norwegian kroner. Instead of properly dividing euro cent amounts by 100 to convert to kroner, the system multiplied them by 100, creating prize notifications that were an astronomical 10,000 times higher than actual winnings.

The scale of the technical disaster was unprecedented:

• 41,000 Norwegian players received incorrect prize calculations
• 16,000 received push notifications on their mobile devices with the false amounts
• Prize amounts ranged from tens of thousands to over a million kroner for players who had actually won modest sums
• The error persisted for several hours before being detected and corrected

Real-World Impact Stories

The human cost of this technical failure extended far beyond mere disappointment. One particularly devastating case involved a woman renovating her home who received notification of a NOK 1.2 million ($112,000) win, only to discover her actual prize was NOK 110 ($10). Another player believed they had won NOK 1.9 million ($175,000) before learning the harsh truth.

Lise Naustdal, one of the affected players, captured the cruel brevity of the experience with devastating simplicity: “It was a very fun minute.” This sentiment reflected the experiences of thousands who experienced the psychological whiplash of sudden wealth followed by crushing disappointment.

Within hours of receiving the false notifications, Norwegian citizens began making major life decisions based on their perceived windfalls:

• Holiday bookings for dream destinations they had never thought possible
• Apartment purchases and extensive home renovation plans
• Debt repayment strategies and family financial commitments
• Career change decisions based on newfound financial freedom

Consumer advocates described the collective experience as “financial trauma” affecting thousands of families who had briefly glimpsed a completely different future before having it cruelly snatched away.

CEO’s Tearful Exit: Taking Ultimate Responsibility

The crisis claimed its most high-profile casualty on Saturday evening when Tonje Sagstuen announced her resignation following an emergency meeting with Norway’s Ministry of Culture. Her departure marked the abrupt end of what had begun as a promising tenure that started in September 2023.

In an emotional public statement that revealed the personal toll of the crisis, Sagstuen acknowledged the magnitude of her failure:

“I am terribly sorry that we have disappointed so many, and I understand that people are angry with us. I have received many messages from people who had managed to make plans for holidays, buying an apartment or renovating before they realized that the amount was wrong. To them I can only say: Sorry! But I understand that it is a small consolation.”

A Distinguished Career Cut Short

Sagstuen’s resignation brought to an end a remarkable career that spanned elite sports, journalism, and public service leadership. Her professional journey included:

• Olympic handball career: Silver medalist at the 1992 Barcelona Olympics with 217 caps for Norway
• Media leadership: Editor-in-chief of Oppland Arbeiderblad newspaper from 2012-2014
• Norsk Tipping veteran: Joined as Deputy CEO in 2014, becoming permanent CEO in November 2023

Her appointment had been hailed as bringing much-needed stability after Thor Gjermund Eriksen’s brief nine-month tenure ended in October 2023. Eriksen, a media executive who left to become CEO of railway operator Bane Nor, had himself succeeded Asne Havnelid after her six-year leadership period.

The pattern of CEO turnover at Norsk Tipping has become a concerning trend that reflects the increasing pressures facing Norway’s gambling monopoly in an evolving digital market.

Government Crisis Response: Emergency Intervention

The severity of the crisis prompted immediate government intervention at the highest levels. Lubna Jaffery, Norway’s Minister of Culture and Equality, convened emergency meetings with Norsk Tipping’s board, delivering scathing criticism that highlighted the government’s mounting frustration with the monopoly operator.

“Such mistakes should not happen,” Jaffery stated. “We expect their board to work actively to improve the control routines.”

The minister’s comments carried particular significance given Norsk Tipping’s exclusive license to operate gaming services in Norway. Jaffery emphasized that the monopoly’s legitimacy depends entirely on public trust, a foundation severely damaged by the incident.

Sylvia Brustad, Norsk Tipping’s board chair, moved quickly to announce that Vegar Strand, the company’s director of strategy, analysis and business development, would serve as acting CEO. Strand immediately acknowledged the crisis’s severity while attempting to reassure stakeholders:

“We have greatly disappointed our customers, and take full responsibility for cleaning up. Such mistakes should not happen.”

A Pattern of Technical Failures

The Eurojackpot debacle represents the latest and most damaging in a series of technical failures that have plagued Norsk Tipping throughout 2024 and 2025, creating a troubling pattern of system breakdowns that has cost the company millions in fines and immeasurable reputational damage.

Previous Major Incidents

• February 2025: Proposed NOK 36 million ($3.3 million) fine for self-exclusion system failures affecting iOS users for several months, highlighting serious gaps in player protection systems
• September 2024: NOK 4.5 million ($427,000) fine for overpaying a player NOK 20 million in an online casino game due to system malfunction
• April 2025: Customer database errors causing significant delays in winner confirmations and payment processing
• Early 2025: Multiple “serious errors” discovered in various company systems during routine audits

These recurring problems have prompted Terje Gilleshammer, communications director at Norway’s gambling regulator, to launch a comprehensive investigation into the company’s technical infrastructure and operational procedures.

“This is a serious matter, which is clearly harmful to Norsk Tipping,” Gilleshammer stated. “Our job is to assess whether what has happened is a violation of the Gambling Act.”

The pattern of failures raises fundamental questions about Norsk Tipping’s technical competence and ability to operate sophisticated digital gambling systems safely and reliably.

Political Earthquake: Monopoly Under Siege

The crisis has provided powerful ammunition for politicians seeking to dismantle Norway’s unique gambling monopoly, particularly as the country approaches crucial elections in September 2025. Peter Frølich, a senior Conservative Party MP, immediately seized on the incident to advocate for a competitive licensing system:

“If we had had a licensing system, we could have revoked a license and cracked down on errors like we see at Norsk Tipping now,” Frølich argued. “The monopoly system provides no accountability mechanisms when operators fail consumers.”

Growing Political Opposition

The Conservative Party (Høyre) has made gambling market liberalization a key manifesto commitment ahead of the September elections, arguing that the current monopoly system fails to protect consumers while limiting choice and innovation. Tage Pettersen, another Conservative MP, points to concerning statistics showing that nearly 50% of Norwegian online betting already occurs through unlicensed operators offering better odds and games.

“The monopoly is already failing,” Pettersen contends. “Norwegians are voting with their wallets by choosing international operators that provide better service, better odds, and more reliable systems.”

Regional Defense of the Monopoly

However, the monopoly retains strong support in regional Norway, where Norsk Tipping’s profits fund crucial social programs. Four Norwegian counties (Agder, Østfold, Rogaland, and Finnmark) have launched a coordinated campaign under the slogan “We can’t gamble away our future” to defend the current system.

These regions received a combined NOK 733 million ($68 million) from Norsk Tipping in 2024 for sports, culture, and humanitarian programs, representing essential funding that would be at risk under a liberalized system.

“The monopoly isn’t just about gambling—it’s about funding the programs that make our communities strong,” explained a spokesperson for the regional coalition. “Private operators don’t invest in Norwegian society the way Norsk Tipping does.”

Financial Performance: Success Amid Operational Failure

Despite its operational troubles, Norsk Tipping has delivered impressive financial results that underscore the economic stakes involved in potential market liberalization:

• 2024 revenue growth: Turnover increased from NOK 2.6 billion to NOK 3.1 billion as regulators successfully blocked illegal gambling sites
• Player base expansion: Over 2.2 million Norwegians played Norsk Tipping games in 2023, an 11% increase from 1.8 million in 2022
• 2023 profit distribution: NOK 7.087 billion distributed to social causes, the highest in company history

The monopoly’s success in channeling players from illegal offshore operators back to regulated offerings has been a key government achievement, making the technical failures even more politically damaging. The contrast between financial success and operational incompetence has become a central theme in political debates about the system’s future.

Consumer Trust Crisis: Reputation in Ruins

The Eurojackpot scandal has shattered Norsk Tipping’s carefully cultivated image as a reliable, socially responsible gambling provider. Industry experts warn that the reputational damage could persist for years, potentially accelerating the migration of Norwegian players to unlicensed international operators.

Norwegian Gambling Authority data already reveals concerning trends that the crisis may accelerate:

• 66% of Norwegian online gambling activity occurs on international websites outside regulatory control
• Norway loses approximately NOK 2 billion annually in tax revenue to offshore operators
• 177,000 Norwegians are classified as problem gamblers or at-risk players

The crisis threatens to undermine the social protection rationale that underpins Norway’s monopoly model, as players lose confidence in the state operator’s competence and reliability.

International Context: Norway’s Isolated Position

The scandal highlights Norway’s increasingly isolated position in European gambling regulation. While Norway maintains strict state monopolies based on social protection arguments, neighboring countries have successfully transitioned to competitive licensing systems that provide better consumer protection and higher tax revenues:

• Finland: Announced plans to introduce private operator licensing starting in 2026, ending its own monopoly system
• Sweden: Operates a successful multi-license system since 2019 that has improved channeling and player protection
• Denmark: Competitive market has enhanced both player protection and tax revenues while reducing black market activity

Maarten Haijer, Secretary General of the European Gaming and Betting Association, has repeatedly argued that monopolies fail to protect consumers while competitive markets provide superior channeling and protection mechanisms.

“The Norwegian case demonstrates the inherent risks of monopoly systems,” Haijer commented. “When a single operator fails, consumers have no alternatives, and there are no competitive pressures to drive improvement.”

The Road Ahead: Existential Challenge

As Vegar Strand assumes interim leadership of Norsk Tipping, the company faces challenges that extend far beyond operational fixes. The organization must rebuild fundamental trust while defending a monopoly model under intense political pressure.

Immediate Operational Priorities

• Complete system overhaul: Comprehensive audit and replacement of vulnerable technical infrastructure
• Enhanced quality control: Implementation of multiple verification layers for all prize calculations and customer communications
• Strengthened regulatory compliance: Systems and procedures to prevent future violations and fines
• Transparency initiatives: Regular public reporting on system improvements and error prevention measures

Political and Strategic Challenges

The September 2025 elections will likely determine whether Norway maintains its monopoly model or follows Finland’s path toward market liberalization. The Conservative Party’s criticism has gained significant credibility from Norsk Tipping’s repeated failures, while monopoly defenders struggle to maintain that state control provides superior consumer protection.

The company must demonstrate not only technical competence but also the fundamental value proposition of the monopoly system in an era of sophisticated international alternatives.

Conclusion: A Defining Moment for State-Controlled Gambling

The Eurojackpot scandal represents far more than a technical failure. It embodies the broader challenges facing state-controlled gambling in an increasingly digital and competitive environment. Tonje Sagstuen’s resignation symbolizes the personal cost of institutional failure. At the same time, the thousands of Norwegians who experienced the cruel reversal from perceived millionaire status to harsh reality represent the human consequences of systemic breakdown.

The incident has exposed fundamental vulnerabilities in Norway’s gambling monopoly model just as the country approaches elections that could reshape its entire approach to gambling regulation. The contrast between the monopoly’s financial success and operational failures has become impossible to ignore, providing powerful ammunition for those advocating market liberalization.

As Norway grapples with the aftermath of this crisis, the fundamental question facing policymakers is whether the monopoly system can be reformed and modernized sufficiently to justify its continued existence, or whether the repeated failures demonstrate the need for competitive market structures that provide accountability through choice.

The million-kroner mirage lasted only hours, but its political and social aftershocks will reverberate through Norwegian society for years to come. For Norsk Tipping, the path forward requires not just technical fixes but a fundamental transformation of organizational culture and operational excellence. Whether the company can achieve this transformation while maintaining public support for the monopoly model may determine the future of state-controlled gambling in Europe.

The stakes extend beyond Norway’s borders, as other European countries with monopoly systems watch to see whether technical competence and consumer trust can be restored, or whether this crisis marks the beginning of the end for state-controlled gambling in developed democracies.

References

1. Euronews. (2025, June 30). “Norway’s lottery mix up leads thousands to think they won big prizes.”
2. iGaming Business. (2025, June 30). “Norsk Tipping chief quits after Eurojackpot debacle.” 
3. Perth Now. (2025, June 30). “Thousands in Norway fooled by major lottery error.” 
4. The Telegraph. (2025, June 30). “Thousands of Norwegians told they were kroner millionaires after lottery mistake.”
5. BBC News. (2025, June 30). “Thousands in Norway told they won up to millions in lottery error.”