Finland Aims For Competitive Licensing System

Finland is on the brink of significant changes in its gambling industry as the country’s Ministry of the Interior embarks on a legislative project to reform its licensing system. The aim is to end the long-standing monopoly held by Veikkaus Oy and establish a more competitive market for online betting and gaming. This move comes as a response to concerns over channelisation rates and the need to enhance player protection. In this article, we will explore the key elements of Finland’s gambling reform, including the objectives, proposed changes, and industry reactions.

The Finnish government has been actively pursuing reforms in the gambling sector throughout the year. One of the primary concerns is the significant amount of money flowing to overseas operators due to the existing monopoly. Estimates suggest that Finnish players wager between €500m and €550m with these operators, raising concerns about player protection standards and the loss of tax revenue. To address these issues, the Ministry of the Interior has initiated a project to develop legislative proposals for reforming the licensing system.

The legislative project aims to introduce a “partial licensing system” that would allow Veikkaus to retain its monopoly over lottery, retail betting, and casinos, while opening up the online betting and gaming market to competition. The project will cover various aspects of the licensing framework, including the allocation of licenses, games covered by the system, fees and taxation rates, gambling management tools, harm prevention measures, and the control and marketing of betting activity.

The European Gaming and Betting Association (EGBA) has expressed its support for Finland’s plans to end the online gambling monopoly and establish a licensing system. EGBA sees this as a crucial milestone for the only EU member state still operating an exclusive monopoly regime. The association believes that the introduction of a multi-licensing system will provide greater choice and safeguards for Finnish consumers, ensure fair competition, and enable better control over the online gambling market.

Veikkaus, the state-owned operator currently holding the gambling monopoly, has also offered its backing to the reform. Despite acknowledging the potential job losses associated with the changes, Veikkaus sees this as a necessary step towards meaningful gambling reform in Finland. The company believes that the government’s objectives, including enhanced player protection and increased control over the market, are crucial for the future of the industry.

The legislative project’s timeline extends until the end of December 2025, with the aim of submitting a government proposal to Finland’s parliament in spring 2025. The Ministry of the Interior has established a political steering group and an intersectoral working group involving key ministries and authorities to oversee the project. Additionally, experts from various sectors will be extensively consulted to ensure the reform takes into account the social impacts and gambling-related harm.

The proposed reform is expected to bring several benefits to the Finnish gambling industry. First and foremost, it aims to prevent and reduce the harm resulting from gambling by establishing stricter supervision and regulations. With the introduction of a multi-licensing system, Finnish players will have a wider range of options, ensuring fair competition between operators and better protection for consumers. Moreover, the reform is expected to increase tax revenues, create a level playing field, and enable more effective oversight of the gambling market.

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Finland Aims For Competitive Licensing System
Source: Trend Philippines News