Finland warned against Veikkaus overhaul by Public Health advisor

Finland’s Institute of Health and Welfare (THL) has expressed doubts about the government’s overriding ambitions to launch a new gambling regime.

In July, the Ministry of the Interior opened a consultation seeking feedback from government agencies and departments on Finland launching a modern gambling regime in 2027.

The timeframe of 2024-to-2026 will see state-owned gambling group Veikkaus Oy end its monopoly on Finnish gambling activities for land-based and online gambling.

In 2027, the government of Finland aims to relaunch its gambling regime, opening up the online gambling market to competition by ending monopoly arrangements of Veikkaus.

Reformists back plans for a regime change, as Finnish authorities state that they cannot control consumers’ engagement with unlicensed online gambling websites. Reports detail that Finnish adults are wagering more than €500 million each year on unlicensed websites.

THL, which serves as the principal research agency on Finland’s public health and welfare for the Ministry of Social Affairs, expressed doubts about policy objectives.

The agency stated that the introduction of a “competitive licensing framework for Finnish gambling does not guarantee better protections for national consumers.”

THL recognizes the current deficiencies in Finnish gambling, in which Veikkaus holds 50% of the online market share, with the “other half controlled by companies that are not allowed to participate in Finland.”

However, the Institute believes that removing Veikkaus from online gambling may see an increase in problem gambling rates in Finland. According to recent studies by THL, 4.2% of Finns, or over 150,000 people, suffer from problem gambling or are classified as “at-risk” gamblers. This marks a significant increase from previous years when around 3% of the population faced serious gambling issues. The agency has highlighted that men are particularly affected, with 6.6% of men reporting serious gambling problems, compared to 1.8% of women.

The government was warned to ensure that it has implemented policies and protections to remove or limit the most addictive and fast-paced forms of online gambling, should a regime be launched from 2027 onwards.

Reformists were criticised for supporting proposals prioritising industry revenues “over public health, potentially exacerbating gambling-related harm in the country.”

THL’s concerns are underscored by these findings, showing a rise in problem gambling despite a decrease in the overall number of gamblers in Finland. This trend is particularly worrisome as it suggests that the introduction of a competitive market could exacerbate the issue. The agency emphasizes that while opening the market may address some concerns related to unlicensed operators, it could also lead to an increase in gambling addiction and related social harms.

Critics of the reform argue that the government should focus on strengthening consumer protections and implementing more robust measures to prevent problem gambling, rather than prioritizing revenue generation. They call for strict regulatory frameworks that would ensure all operators adhere to high standards of responsible gambling, including limits on the most addictive forms of online gambling.

As the government prepares to transition towards this new gambling regime, THL urges policymakers to carefully consider the potential public health implications and to ensure that adequate safeguards are in place. The agency warns that without these protections, the liberalization of the gambling market could lead to significant public health challenges, undermining the very goals of the reform.

With the proposed regime change set to take effect in 2027, the Finnish government faces the critical task of balancing these competing priorities to protect its citizens while modernising its gambling industry.