Finland to review state gambling monopoly

The Finnish Competition and Consumer Authority (KKV) has announced it will conduct a full-scale review of the current gambling monopoly system in the country, with a view to potentially ending the tenure of Veikkaus Oy Ab as the country’s sole gambling operator.

Veikkaus was given the monopoly on games of chance, betting, slots machines and casinos by the 2001 Lottery Act.

All profits made by the firm are distributed to good causes throughout Finland via the Finnish regulator, the National Police Board. However, there has been widespread concern that the current monopoly system conflicts with EU law regarding the free provision of goods and services throughout member states.

The KKV said the legal monopoly is “notably inconsistent with EU gambling law” as the marking activities of Veikkaus have “accelerated and diversified” to the point where there are doubts over whether the business’ focus remains on minimising gambling related harm and not on its own profits.

Joonas Dammert, an associate at DLA Piper, said it was “extremely hard” to predict what the possible implications of the review will be at this stage but ruled out the “demolition” of the entire monopoly system due to a lack of political impetus.

He said the most realistic option was the potential liberation and regulation of the sports betting market, adding that lotteries, slots machines and casinos were “probably not up for discussion even after the review”.

Last month, Veikkaus announced it would cut 400 jobs from its business following what it called a “drastic decrease” in its land-based operations and structural changes.