The newly elected Finnish government is set to bring about a significant transformation in the country's gambling industry. With a robust commitment to eradicate the existing monopoly system in gambling and replace it with a licensing model by 2026, Finland is on the brink of a revolution.
The Existing Monopoly System
At present, Veikkaus Oy, the Finnish national betting agency, is the sole holder of the betting license for lotteries and sports betting. This exclusive privilege was granted in 2017 when Veikkaus merged with RAY and Fintoto.
The monopoly system, however, has been less than successful. The government has recognized that the current policy has failed to address the issue of problem gambling effectively. Moreover, the channelisation rate to the regulated market remains disappointingly low at around 50%.
The Upcoming Licensing Model
The proposed licensing system aims at encompassing both online casino games and sports betting. Veikkaus, the state-owned gaming monopoly, would be divided into several separate companies within the same group as part of the process.
This move is expected to reverse the 2017 merger of Veikkaus, Raha-automaattiyhdistys (a slot business), and Fintoto (a horse race betting operator). The government believes that the licensing model will enhance regulation and control over the gambling industry.
The Goals of the Reform
The primary objective behind this reform is to mitigate the adverse health, financial, and social consequences associated with gambling. The licensing model is also expected to improve the country's channelisation rate to legal offerings.
The government intends to empower the regulator with sufficient resources and to implement measures to combat money laundering and preserve sports integrity. A single self-exclusion platform for all gambling portals is also in the pipeline.
Marketing Regulations
The government plans on regulating marketing practices to ensure moderation, responsibility, and reduced frequency. It is mandatory for marketing content to be moderate and responsible in its scope, visibility, and frequency.
Industry Response
The Finnish online gambling trade association, Rahapeliala, has welcomed the government's move. Rahapeliala CEO Mika Kuismanen stated that this reform promotes fair competition, protects societal interests, and demonstrates responsible structural changes.
The Future Government’s Policy Programme
This new policy programme is the result of several months of negotiations following the April elections. Led by Petteri Orpo, the National Coalition Party, the right-leaning government consists of the Swedish People's Party, the Christian Democrats, and the anti-immigration Finns Party.
The Necessity of the Reform
In April, a government study recommended the country to reform its monopoly system based on a comparison with peer countries. Both the government and the opposition saw reasons to end the monopoly, which triggered the decision to transit from the monopoly system to a licensing model.
The Timeline
The Finnish government has pledged to introduce the new licensing system no later than 1 January 2026. Before any reforms are undertaken, a 'careful investigation' into the social effects and potential disadvantages of any changes will be conducted.
Conclusion
Finland's commitment to ending the gambling monopoly and embracing a licensing model reflects a progressive approach to addressing societal concerns while adapting to evolving technological realities. This transformation underscores the government's determination to implement economically and socially responsible changes in the gambling sector.