EveryMatrix sues Norsk Tipping over nullified €150m contract
Supplier rails against “constructed” argument after monopoly operator blames illegal gambling activities as key reason to negate contract
EveryMatrix is suing Norsk Tipping for NOK398m (£34.6m) after the Norwegian operator negated a payment technology supply agreement with the firm.
In Q2 2020, Norsk Tipping announced a tender for companies to become its new supplier of payment services, with EveryMatrix initially winning the competition in November 2020.
The awarding of the contract, which EGR understands was worth €150m, was then appealed by rival bidder Buypass, a digital ID and payment solution provider.
Buypass, which is 50% owned by Norsk Tipping, was then awarded the tender following a reassessment of the process by Norsk Tipping.
EGR understands a decision on the lawsuit will be made by the Norwegian courts in the next three to four weeks.
Originally, EveryMatrix appealed the decision to award the contract to Buypass in the Norwegian courts but in April 2021 the Hedmark District Court dismissed the case after finding Norsk Tipping did nothing wrong in the process of awarding the contract.
Norsk Tipping said that in the second review of the bids, it rejected EveryMatrix based on the fact the supplier failed to disclose what subcontractors it would use in the partnership.
Norsk Tipping also pointed to EveryMatrix’s sister company, MoneyMatrix, having “participated in illegal gaming activities in Norway” according to investigations undertaken by accountancy giant EY.
The operator said MoneyMatrix had offered its services to provide payments on behalf of non-licensed operators in the country as recently as November 2020.
Norsk Tipping said: “It was revealed that companies in the EveryMatrix group had participated in illegal gaming activities in Norway. Norsk Tipping assessed the circumstances so that it had a duty to reject EveryMatrix from the competition, and after thorough assessments, it was therefore decided to reject the company.”
Speaking to EGR, EveryMatrix CCO Stian Hornsletten said: “The case is about suing Norsk Tipping for lost revenues because of wrongfully disqualifying us from the procurement which we originally won.”
Hornsletten went on to dismiss the conflict of interest claims made by Norsk Tipping in relation to MoneyMatrix’s activity in the market.
He said: “We signed a letter guaranteeing that we were not in a conflict of interest. We had already stopped payment processing in Norway years ago. We already had a contract with Norsk Tipping for the casino, with all bingo, scratch cards and casino games being handled by EveryMatrix.
“We already had a very good relationship with Norsk Tipping,” he added.
In a submission to the Østre Innlandet District Court, EveryMatrix said: “In EveryMatrix’s view, the rejection represents a compensation-related breach of the procurement rules, and the other conditions for compensation have also been met.
“Norsk Tipping’s decision to reject EveryMatrix on the basis of a conflict of interest was made on the wrong factual basis, and in any case goes further than necessary. The argumentation appears on the whole very constructed,” the statement concluded.