Finland’s proposed overhaul of its gambling framework has sparked significant concern among public health officials and industry stakeholders. The Finnish Institute for Health and Welfare (THL) warns that the transition from a state-run monopoly to a competitive licensing model could exacerbate gambling-related harms.
THL Warns of Increased Gambling Harm
The THL has expressed apprehension that dismantling Veikkaus’ monopoly, particularly in online casino and sports betting sites, may lead to a surge in problem gambling. The institute highlights that the government’s proposal contradicts its goals of preventing and reducing gambling-related harm, especially as it opens up the most addictive forms of gambling to increased competition.
Recent studies indicate that 4.2% of Finns, over 150,000 individuals, suffer from problem gambling or are classified as at-risk gamblers. This marks a significant increase from previous years, with men being particularly affected.
Regulatory Council Flags Shortcomings
The Finnish Council of Regulatory Impact Analysis (FCRIA) has also raised concerns about the proposed licensing model. The council finds it “unclear” why the government is proposing a model that will “likely increase the harm caused by gambling.” It calls for the proposal to include details on the risks it poses to the objective of reducing harm and its compatibility with EU law.
Industry Stakeholders Express Reservations
Mika Kuismanen, CEO of the Finnish online gambling trade body Rahapeliala Ry, warns that the proposed liberalization may limit marketing and sponsorship opportunities for licensed operators. He cautions that the nature of these restrictions might encourage players to remain in, or even migrate to, the grey market, where unlicensed gaming companies operate without regulatory oversight.
Similarly, the European Gaming and Betting Association (EGBA) supports the move towards a multi-licensing framework but calls for key adjustments. The EGBA raises concerns about the ban on affiliate marketing and social media advertising, arguing that these platforms play a crucial role in directing consumers to licensed operators. It also warns that prohibiting bonuses entirely could make regulated operators less competitive compared to unlicensed ones.
Charitable Organizations Fear Funding Loss
The Finnish Fundraising Association (VaLa) warns that the proposed reforms could jeopardize a vital income stream for charities. Currently, Veikkaus distributes hundreds of millions of Euros each year to the Finnish Government, which is in turn allocated to various good causes. VaLa argues that the licensing process should consider whether profits will go to good causes, as lower-risk forms of gambling like lotteries can be important for fundraising.
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Government’s Rationale and Next Steps
The Finnish government aims to end Veikkaus’ monopoly by 2026, transitioning to a licensing model to improve the country’s channelisation rate to legal offerings. The new system would include both online casino games and sports betting, with Veikkaus retaining exclusive rights for lottery, horse race betting, and land-based slots and scratchcards.
The government emphasizes that the introduction of the licence model must be based on a careful investigation of the social effects of the reform, especially its effects on the prevalence of gambling problems. It plans to establish a single self-exclusion platform for all different gambling portals and require marketing to be “moderate and responsible in its content scope, visibility and frequency.”