Finland initiates legislative process prior to major gambling reform

Lea Hogg October 26, 2023

SiGMA news

Finland initiates legislative process prior to major gambling reform

Finland’s government is planning a more structured legislature to establish a regulated gambling market by 2026.

Consequently, the Ministry of the Interior has launched a comprehensive project to facilitate the transformation of Finland’s gambling landscape as it prepares to introduce its licensing system.

The longstanding gaming monopoly held by state-owned Veikkaus is set to come to an end, making way for private companies to operate under a regulated gambling licensing framework.

Path to regulation

The initiative marks the first step in a regulatory process that the Orpo government has been pursuing since Finland’s general election in April 2023. The government’s strategy is informed by a preliminary study of the gambling system and alternative models, which was completed in April.

Legislative proposals for reform

Over the next two years, the Finnish government will draft legislative proposals to revamp the gambling system. These proposals will encompass the range of games subject to the licensing system, license fees and taxation, and tools for managing gambling activities.

Additionally, the legislation will address issues related to gambling-related harm, as well as the oversight and marketing of gambling operations.

A political steering group and an intersectoral working group, comprising key ministries and authorities, have been established for the project. The government also plans to consult experts from various sectors.

Parliamentary proposal

The Ministry’s objective is to present a reform proposal to the parliament in the spring of 2025. The project is expected to run until 31 December 2025.

The Finnish government aims to increase the country’s channelization rate, which has been found to be relatively low compared to peer nations, as highlighted in the preliminary study.

A ministry spokesperson emphasized, “The aim of the reform is to prevent and reduce the harm resulting from gambling and to improve the channelling rate of the gambling system in accordance with the government program.”

Two paths for reform

The preliminary study resulted in findings that gambling outside the existing monopoly system has led to increased gambling-related harm. Two options were presented for developing the gambling system: either reinforcing the current gambling monopoly system or transitioning to a licensing model for online casino games and online betting.

The government has decided to end Veikkaus’ monopoly of online casino games and online betting, while retaining its monopoly status for lotteries and retail slot machines.

In line with the government programme, activities held by Veikkaus and those in the competitive market will be separated into distinct companies within the same group.

The project will also explore the possibility of relocating gaming machines to controlled areas, in accordance with the government program, with a focus on strengthening oversight and mitigating the social impacts of the licensing system.

Possible loss of jobs

Earlier this year, Veikkaus announced its plans to cut jobs and close gaming arcades as part of the preparations for the conclusion of the country’s gambling monopoly.

The restructuring may result in the loss of approximately 240 jobs, and Veikkaus intends to reduce its gaming venues from 65 to between 40 and 50.

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