Norwegian Lottery to Use Smart Card Technology

5 May 2000
The Norwegian Lottery, Norsk Tipping, will introduce a new electronic payment system this summer. Using Mondex electronic money on a smart card, players will soon be able to both purchase tickets and collect their winnings. Following a test with 6,000 players in June, the system will be available to all 1.8 million players next year.

It's possible the U.K. National Lottery may adopt a similar system, according to Mondex sources. At least one bidder for the U.K. National Lottery contract has approached Mondex to learn how the smart card system could be used by the world's largest and best-known lottery. Additionally, Mondex is talking with some online gaming companies considering alternative payment systems.

Mondex' electronic cash is ideally suited for automated lottery payments as it allows remote payment of lottery games via kiosks, mobile telephones and the Internet, according to Frederic Le Gall, head of e-business for Mondex International. While he doesn't foresee their system completely replacing credit card use for online gambling, Le Gall explains that it works well for micro-payments, such as the typical four pounds bet by U.K. punters.

The card used for the Norwegian lottery incorporates the MULTOS smart-card chip, Mondex electronic cash, Posten SDS' electronic identification, and a player application for Norsk Tipping's various games. The built-in identification system will keep underage users from buying lottery tickets, Le Gall said.

The Norwegian government approved the card's use, which will allow Norsk Tipping to offer new games over the Internet via PCs, mobile phones and digital television, along with offering users the ability to shop with electronic cash via television, the Internet and other digital channels.