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General remarks

The annual accounts are prepared in compliance with the provisions of the Norwegian Accounting Act and good accounting practice, with the modifications necessitated by the unique nature of Norsk Tipping as set out in the Norwegian Gaming Act no. 103 of 28.8.1992.

Norsk Tipping AS’s is subject to the provisions of the Gaming Act, which states that a publicly owned limited company shall act as a gaming company.  The Ministry of Culture and Equality determines the company’s articles of association, appoints the Board and issues instructions to the Board. The Board is charged with ensuring that the company is operated in line with its objectives and guidelines.  The Board is responsible for adequate organisation and management of the company, which includes ensuring that matters including registration and asset management are subject to satisfactory control. The articles of association set out the Ministry of Culture and Equality’s right to issue instructions outside the ambit of ordinary governance through the general meeting.


Norsk Tipping’s subsidiaries are of no relevance when assessing the Group’s financial position or performance. For this reason, and pursuant to section 3-8 of the Accounting Act, consolidated accounts are not prepared.

Use of estimates

The senior management team has used estimates and assumptions that have influenced the income statement and the valuation of assets and liabilities. Service life assumptions first and foremost affect valuations of fixed assets and intangible assets and the associated depreciation. Valuations have also been made of any unsecured assets and liabilities on the balance sheet date in connection with closure of the annual accounts in line with good accounting practice.  The senior management team is unaware of any material uncertainty associated with the accounts and capitalised assets.


Transactions in foreign currencies are translated based on the exchange rate on the date of the transaction. Monetary items in foreign currencies are translated to Norwegian kroner using the exchange rate on the balance sheet date. The effects of changes in exchange rates are recognised in the income statement on a continuous basis under other financial items.

Operating revenue, prizes, and commissions

The term ‘gaming revenue’ refers to the gross stakes risked by players.  In the case of gaming terminals (Belago and Multix) and online gaming, players will normally play multiple times during a single gaming session and reuse any prizes as stakes. For accounting purposes, each individual game, involving a stake followed by a draw with possible payment of a prize, is regarded as a separate transaction regardless of the number of gaming sessions.

The recognition of gaming revenue and related prizes and commissions in the accounts does not fully correspond with the calendar year rather it is adjusted to conform to the subdivision of the year into numbered weeks. In 2021, gaming-related revenue and expenses were from 52 gaming periods/weeks. Gaming stakes and the associated anticipated prizes for multi-week games are accrued for each of the relevant gaming periods/weeks. Commissions are distributed on the same basis.

Revenue from other sales is recognised once delivery has taken place and most of the risk and return has been transferred.


The company is exempt from tax.

Classification and valuation of balance sheet items

Current assets and current liabilities include items that fall due for payment within a year of the date of acquisition, as well as items linked to goods circulation. Other items are classified as non-current assets/non-current liabilities.

Current assets are valued at the lower of acquisition cost and fair value. Current liabilities are capitalised at their nominal value on the date they are incurred.

Non-current assets are valued at acquisition cost, less depreciation, and write-downs. Non-current liabilities are capitalised at their nominal value on the date they are incurred.

Research and development

The company complies with the exemption rule set out in the provisions of section 5-6 of the Accounting Act when recognising expenses related to basic research and development. The company’s activities in this area are very limited.

Fixed assets and intangible assets

Fixed assets are capitalised and depreciated on a straight-line basis over their expected service life. Direct maintenance of fixed assets is expensed on an ongoing basis as operating expenses, while upgrades or improvements are capitalised and depreciated over the expected service life. If the fair value of an asset is less than its book value, the asset is written down to its fair value. The fair value is the higher of net sales value and utility value. The term ‘utility value’ is understood to mean the net present value of future cash flows that the asset is expected to generate, either directly or as a prerequisite for the company’s other cash flow items.

The company’s development activities involving its own development of software, gaming concepts, distribution channels and systems are valued in line with Norwegian Accounting Standard 19 – Intangible assets. Development activities that meet the criteria are capitalised and depreciated over their expected service life.

Subsidiaries/associated companies

Subsidiaries and associated companies are valued using the cost method in the company’s accounts. Investments are valued at the shares’ acquisition cost unless a write-down has been deemed necessary. Investments are written down to fair value when the reasons behind a fall in value cannot be assumed to be temporary in nature and good accounting practice necessitates it. Write-downs are reversed when the basis for the write-down no longer exists.

Dividends, group contributions and other disbursements from subsidiaries and affiliated companies are recognised as income in the same year they are approved by the companies’ general meetings.


Sales agent receivables, trade receivables and other receivables are recognised on the balance sheet at their nominal value less provisions for expected losses. Provisions for losses are made on the basis of individual valuations of the individual receivables. An unspecified provision is also made to cover expected losses on other trade receivables.


The company has defined benefit pension plans that are valued at the present value of their future pension benefits which, for accounting purposes, are regarded as earned on the balance sheet date. Pension assets are valued at fair value.

Changes to defined benefit pension liabilities resulting from changes to pension plans are distributed over the estimated average remaining accrual period.

The company uses the corridor method to recognise the effects of pension assumptions. The cumulative effect of changes in estimates and financial and actuarial assumptions (actuarial gains and losses) equal to less than 10 per cent of the greater of pension liabilities and pension assets at the start of the year are not included. If, at the start of the year, the cumulative effect exceeds 10 per cent, the excess amount is recognised over the estimated average remaining accrual period. Net pension expenses for the period are classified as payroll and personnel expenses.

Statement of cash flow

The cash flow statement is prepared using the indirect method. Cash and cash equivalents include cash, bank deposits and other short-term, liquid investments.

Value Added Tax

Norsk Tipping AS’s ordinary activities are exempt from value added tax pursuant to section 5(b), paragraph one no. 6, of the Value Added Tax Act. As a general rule, expenses and investments are inclusive of VAT.

Restatement of comparative figures

The allocation of other operating expenses in note 4 has been adjusted compared with previous years. The comparative figures for 2020 have been updated accordingly.

The company’s operations are divided into gaming product categories based on the fundamental characteristics of the games in question.

Gaming revenue per product category

Gaming revenue20212020
Lotteries11 11811 243
Sports betting4 8093 575
Scratch games1 0291 071
Terminal games3 9754 060
Online gaming22 81022 644
Total gaming revenue43 74142 594

Net gaming revenue per product category (stakes less prizes)

Net gaming revenue20212020
Lotteries5 5345 594
Sports betting1 121882
Scratch games455484
Terminal games292301
Online gaming 1 2681 249
Total net gaming revenue8 6708 510

The gaming revenue was from calendar weeks 1-52 in 2021 (4.1.2021 – 2.1.2022).

The company’s activities are targeted at the Norwegian market. There are no natural geographically defined market segments.

Salaries and fees334317
Employer’s national insurance contributions5449
Pension expenses5951
Other social expenses55
Benefits in kind 88

Remuneration of executive personnel in 2021

Name PositionSalaries and feesOther remunerationPension expensesTotal
Åsne Havnelid CEO2 879104683 357
Stein Willy AndreassenDirector of Finance and Cooperate Governance 1 627103041 941
Tonje SagstuenDirector of Responsibility, Society and Communication 1 694103812 085
Per Ove SkomakerstuenDirector of IT Operations1 519101 1662 695
Per Kristian MengshoelDirector of Innovation and Development1 271103241 605
Thorbjørn UnnebergDirector of Customer Experience1 832168182 666

The annual salary of the highest paid employee in the company is 4.3 times the median salary in the company. The salary of the highest paid increased by 3 per cent. This is the same as the median increase in the company.

The Board determines the salary and other conditions of the CEO, while the Ministry of Culture and Equality set the fees for the Board.

No special pension agreements have been entered into with the CEO beyond the general terms and conditions that apply to all other employees.

In the event of involuntary dismissal, a severance payment of up to 6 months’ salary will apply unless otherwise is specifically agreed.

There are no agreements concerning special remuneration in the event of resignation or similar for other employees of Norsk Tipping AS.

The company has entered into retirement pension agreements with a total of five current and four former holders of executive positions with salaries above 12G. These guarantee 66 per cent of salary from the age of 67 and other supplementary benefits. This arrangement has now been discontinued and no similar agreements will be entered into with new employees. Also see unfunded pension plans in note 16.

The company’s funded pension plans satisfy the requirements of the Mandatory Occupational Pensions Act.

Current fee rates paid to the Board:

PositionFee rate
Board ChairNOK 269 100
Deputy ChairNOK 172 800
Board member NOK 147 200
Audit Committee ChairNOK 60 200
Audit Committee memberNOK 41 700
Remuneration Committee ChairNOK 16 100
Remuneration Committee memberNOK 7 500

Deputy representatives receive NOK 8,200 for each meeting they attend.

The total remuneration paid to board members in 2021 was NOK 1,642,000.

The company has no bonus schemes for either managers or other employees.

The company had total of 431 full-time equivalents in 2021, compared with 435 in 2020.

The company offers mortgages to employees on the same terms and conditions as the Norwegian Public Service Pension Fund (SPK). Employees can also apply for short-term loans of up to four times their monthly salary. See notes 8 and 11. No loans or guarantees have been provided to the CEO, Board Chair, or other close associates.

Auditor, amounts in NOK thousands20212020
Standard auditing services441481
Other attestation services5217
Tax advice00
Other services567

Fixed assets

Amounts in NOK millionsArtVehiclesMachinery, equipment and inventoriesLand, buildingsTotal
Acquisition cost as at 1.1.2021 111 9094862 397
Year’s disposals--00
Year’s additions-561065
Acquisition cost as at 31.12.2021111 9644962 463
Accumulated depreciation and write-downs-11 7373612 099
Book value as at 31.12.20211-228135364
Annual depreciation--652590
Depreciation schedule (straight-line)None5 years3-6 years10-25 years

The company has expensed some minor leases for cars, office machinery and equipment.

Intangible assets

Amounts in NOK millionsIT infrastructureGames and game applicationsDistribution channelsAgreementsTotal
Acquisition cost as at 1.1.2021 29118033012813
Year’s disposals -
Year’s additions17---17
Acquisition cost as at 31.12.202130818033012830
Accumulated depreciation and write-downs27917832812796
Book value as at 31.12.20212922033
Annual depreciation13-2015
Depreciation schedule (straight-line)5 years3-7 years5-7 years3 years

Intangible assets relate to development projects carried out under the company’s direction. The projects involve the development of new solutions or modifications of solutions purchased from external suppliers.

The total income from capitalised assets is expected to at least offset the cost of production. Expenses related to salaries and other personnel expenses for employees involved in development work are not capitalised since the company has no reliable means of measuring them.

Depreciation and write-downs

Intangible assets1518
Fixed assets9077
Total depreciation10595
Amounts in NOK millions20212020
Operation of installations and equipment445424
Costs relating to the Norwegian Gambling and Foundation Authority4442
Consultancy services and fees121104
Distribution and shipping costs 3844
Printed matter and office supplies2829
TV production3230
Other expenses 6852
Sponsorship and promotion118132
ID and payment solutions 193185
Total other operating expenses1 3491 319

Financial income

Amounts in NOK millions20212020
Interest income 520
Financial income subsidiaries and associated companies90
Capital gains49
Total financial income1729

Financial expenses

Amounts in NOK millions20212020
Interest expenses11
Other financial expenses00
Capital losses2120
Total financial expenses2221

The company operates accounts in NOK, EUR, SEK, and USD. Balances in currency accounts are normally limited to the amounts required in connection with day-to-day operations. Prize transactions in games offered in cooperation with other regulated gaming companies (Vikinglotto and Eurojackpot) are conducted in EUR and mean that the company can at times hold large reserves of EUR.

In accordance with the company’s articles of association, surplus liquidity in excess of 2.5 per cent of the net gaming revenue in the preceding year is transferred each month to the company’s sight deposits with the Treasury in Norges Bank. The interest terms for these deposits follow the government’s sight deposit rate.

The company has no forward foreign exchange contracts.

CompanyYear acquired Business office Ownership interestVoting rightsCost price of shareholdingBook value
Norske Spill AS2009Hamar100%100%11
Total subsidiaries 11
Associated companies
Buypass AS2006/2009/2011Oslo50%50%3232
Lotteries Entertainment Innovation Alliance AS 2018Hamar25%25%11
Total associated companies3434

Pursuant to section 3-8, paragraph two, of the Accounting Act, the subsidiary has not been consolidated into Norsk Tipping AS’s accounts. The reason for excluding the companies from consolidation is that they are of no relevance when assessing the Group’s financial position or performance.

The annual accounts for Norske Spill AS have not been reported.

The annual accounts for Buypass have not been reported, but provisional accounts for Buypass AS show a profit of NOK 22 million and equity of NOK 185 million. Dividends totalling NOK 8.75 million were recognised as income in 2021.

The company Lotteries Entertainment Innovation Alliance AS was founded on 1.10.2018. The company was established as a joint venture in cooperation with four other state-owned gaming enterprises. In 2020, the company reported a deficit of NOK 270,000 and equity of NOK 12.6 million.

Amounts in NOK millions20212020
Long-term loans to employees *)1013
Other receivables2931

*) The company offers mortgages to employees on the same terms and conditions as the Norwegian Public Service Pension Fund (SPK).

Norsk Tipping AS settles receivables with its sales agents in arrears on a weekly basis by means of automatic deductions.  Receivables are generally secured by means of deposits and guarantees provided by the sales agents. The draw follows the days of the week and the balance at the end of the year will vary because of this.

Other receivables include prepaid and accrued costs and other trade receivables due for payment in less than a year after the end of the accounting year.

Amounts in NOK millions20212020
Trade receivables00
Prepaid costs 4257
Personal loans/salary advances *)66
Other current receivables4857

*) Personal loans/salary advances for employees have a term to maturity of up to 4 years. Interest rate gains are taxed as such.

The item cash and cash equivalents includes tax withholding funds amounting to NOK 20.05 million. Surplus liquidity is transferred only a monthly basis to the company’s sight deposits with the Treasury in Norges Bank. These are classified as bank deposits. The balance of the sight deposits with the Treasury as at 31.12.2021 was NOK 5,479 million.

Norsk Tipping’s share capital consists of three shares, each with a nominal value of NOK 50,000.

The Ministry of Culture owns 100 per cent of the shares in the name of the Norwegian state.

The company has an investment fund in line with the Gaming Act and guidelines issued by the Ministry of Culture and Equality.

The investment fund is included in retained earnings in line with other equity.

Amounts in NOK millions Share capitalNon-distributable equity fundInvestment fundOther equityTotal
Equity as at 31.12.20200.151509326485
Year’s change in equity
Added from the year’s surplus funds 6 2866 286
Year’s transfers to surplus funds recipients-6 286-6 286
Net change in the accounting year00
Equity as at 31.12.2021 0.151509326485

Norsk Tipping AS has both funded and unfunded pension schemes. The funded pension plans are administered by SPK, see the detailed description of the arrangement below. The unfunded pension plans involve retirement pension agreements with current and former holders of executive positions with salaries above 12G, as well as two other pension agreements for former senior employees.

The company has also on occasion entered into supplementary agreements concerning pensions funded through operations with some employees who left following organisational changes.

Norwegian Public Service Pension Fund (SPK)

Description of the arrangement:

Norsk Tipping AS has a group pension scheme for its employees in the Norwegian Public Service Pension Fund (SPK).  The pension scheme provides benefits in line with the Norwegian Public Service Pension Fund Act.  The benefits cover retirement, disability, spouse, and child pensions. In addition, the calculation applies to benefits from the age of 62 under the early retirement arrangement (AFP) for public sector employees. The pension benefits are coordinated with the national insurance scheme’s benefits. The company’s premium contributions are expensed under payroll and personnel expenses as they are incurred.

Premiums are set and pension liabilities calculated based on actuarial principles as part of the SPK arrangement.  The arrangement is not fund based, rather it is based on the simulated administration of pension assets (‘notional assets’) as if the 65 per cent of the assets were invested in government bonds and 35 per cent on returns corresponding to the Government Pension Fund Global. Pension payments are guaranteed by the state (section 1 of the Norwegian Public Service Pension Fund Act). The pension scheme cannot be moved in the same way as a private pension scheme and this calculation assumes that the arrangement will be continued by SPK.  The simulation is based on the bonds being held until maturity.  The pension assets are valued at their book value.

Funded pension plans

Pension expenses

Amounts in NOK millions20212020
Present value of year’s pensionable earnings4647
Interest expense from pension liabilities1416
Return on pension assets-14-23
Employees’ pension contributions-6-6
Administrative expenses11
Net pension expenses before amortisation4135
Recognised effect of estimate deviations1113
Accrued employer’s national insurance contributions 1)88
Net pension expenses funded pension schemes6055
No. of active employees included in the calculation450445

1) Employer’s national insurance contributions are net defined benefit pension liabilities multiplied by the current percentage for employer’s national insurance contributions. Net actuarial gains and losses not recognised on the balance sheet include employer’s national insurance contributions.

Pension liabilities

Amounts in NOK millions31.12.202131.12.2020
Calculated pension liabilities1 128974
Employer’s national insurance contributions6955
Pension assets (at market value)-642-587
Net accrued pension liabilities554441
Unrecognised effect of estimate deviations-420-321
Net pension liabilities134120

Financial assumptions

Discount rate1,90 %1,50 %
Expected return on fund assets 3,10 %2,40 %
Expected wage adjustment2,75 %2,00 %
Expected G adjustment 2,50 %1,75 %

The financial assumptions are based on NRS(V) Pension assumptions (January 2022).

Common assumptions used within insurance have been used as actuarial assumptions for demographic factors and departures. The calculations are based on the mortality assumptions in K2013.

Unfunded pension schemes and pensions funded through operations

As mentioned in note 2, the company has unfunded pension plans, as well as agreements involving pensions funded through operations with some employees linked to their leaving the company.  The agreements concerning pensions funded through operations provide entitlement to 66 per cent of salary from the age of 67.

Amounts in NOK millionsUnfunded agreements Pensions funded through operations
Provisions as at 01.01581,0
New provisions/expenses in the period5-
Paid out in 202120,4
Liabilities as at 31.12610,6

Provisions/expenses in the period were charged in full to the accounts for 2021.

Total pension liabilities

Amounts in NOK millions20212020
Unfunded pension plans6158
Funded pension plans134120
Pensions funded through operations11
Total pension liabilities197180
Amounts in NOK millions20212020
Current liabilities to intragroup companies00
Current liabilities (accounts payable) to associated companies1818
Current receivables from intragroup companies00
Current receivables from associated companies00

Transactions with close associates

Purchase of goods and services20212020
Buypass AS (associated company)211191
Lotteries Entertainment Innovation Alliance AS108

Purchases of goods and services from Buypass AS relate to ID and payment services linked to games. Lotteries Entertainment Innovation Alliance AS delivers games and platform services. The service has been put out to tender in line with the Public Procurement Act.

Amounts in NOK millions20212020
Deposits sales agents2930
Bonus pots linked to games188104
Unpaid holiday pay3635
Liabilities linked to players’ accounts384351

Residual surplus funds and distribution match the year’s distribution of surplus funds less advance payments/distribution to surplus funds recipients based on earned surplus funds for the year.

Advance payments and distribution to surplus funds recipients

Amounts in NOK millions20212020
Health and rehabilitation purposes117111
The Bingo Operators’ surplus funds for good causes1317
Grassroots Share recipients493460
Sports purposes804770
Cultural purposes2515
Total1 4531 374

Residual surplus funds payable

Amounts in NOK millions20212020
Year’s distribution of surplus funds6 2866 167
Advance payments1 4531 374
Total4 8334 793

Board of Director’s Annual Report

The Board’s report on activities in 2021.

Annual accounts

Profit and loss statement, balance sheet and cash flow statement.

Auditor’s report

Independent auditor’s report.

Corporate governance

Report on corporate governance in Norsk Tipping.