Lottery operator CEO steps down after massive blunder

By Kate Northrop

Thousands of Norwegians were told last week that they had won lifechanging amounts of money in the lottery, only to have those hopes dashed away when it turned out to be a massive technical error.

47,000 Norway lottery players were sent on a rollercoaster ride of emotions when they received a notification that they had won millions, when in actuality the amounts were far less.

On Friday, Norway's state-owned lottery operator Norsk Tipping mistakenly sent out digital notifications to 47,000 players incorrectly informing them they had won millions in Eurojackpot prizes. Three whole days later, the company sent out a mass text message to 47,000 apologizing for the blunder.

"Thousands of Norwegians were mistakenly informed that they had won a large prize in the EuroJackpot," the text message, written by Norsk Tipping managing director Vegar Strand, said. "This was a mistake that affected many and which we take very seriously. We deeply regret what has happened, and on behalf of us at Norsk Tipping, I would like to apologize to everyone affected by this. We are incredibly sorry to have disappointed so many."

The mix-up occurred as a result of a currency conversion error. Following a drawing, Norsk Tipping receives prize amounts from Germany in Euros and must then convert them to Norwegian kroner. Rather than dividing those sums by 100, an error in the company's code meant they were multiplied by 100, resulting in the "excessively high" prizes, the company said.

"I am terribly sorry that we have disappointed so many, and I understand that people are angry with us," a translated statement from Norsk Tipping CEO Tonje Sagstuen reads. "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."

One Norway woman told Norwegian Broadcasting Corporation (NRK) that she was alerted to a message informing her of 1.2 million kroner (US$119,338) in winnings, but the real amount she received was a mere fraction.

The Guardian spoke to Ole Fredrik Sveen, 53, who was also under the impression he had won 1.2 million kroner. He received the notification while he was on vacation in Greece, but his immense joy was quashed after only finding out it was worth 125 kroner (US$12).

The incorrect prize amounts were removed from Norsk Tipping's website and app on Friday evening, a press release said, and the correct prize overview was updated on Saturday, the day after the incident took place. Most prizes were paid out by 4:30 a.m. the night of the error, and no players were paid the incorrect amounts.

Sagstuen, who worked for the lottery operator for over a decade and has served as CEO since 2023, stepped down from her role.

"As a manager, it has been my responsibility to handle the errors that have occurred, and it has been very gratifying to see how a united Norsk Tipping has responded to the challenges and worked day and night to solve them," Sagstuen's translated statement says. "That is why it is also incredibly sad to leave Norsk Tipping and all the talented people who work at Hamar."

According to Norwegian broadcaster TV2, Sagstuen will receive six months of severance pay. Norwegian news outlet Ostlendingen reported that her salary last year was 3.732 million kroner ($371,141).

This is also not the first time that the Norwegian lottery operator has been under fire due to "several serious errors" that occurred in recent months, the company said in a news release.

"The criticism is justified, and we understand of course that this is a breach of trust," Sagstuen continued. "I once again apologize to those to whom we gave false hopes. Here, things have failed in several places, and that is my responsibility."

(Click to display full-size in gallery)Norsk Tipping CEO Tonje Sagstuen resigned after thousands were incorrectly notified of huge lottery wins.