Finnish government poised to scrap gambling monopoly model
Veikkaus’ monopoly set to end with introduction of licensing system in major legislative change in the Nordic market
The Finnish government has indicated it will introduce a new licensing system to the country’s gambling market, effectively bringing an end to Veikkaus’ monopoly.
Ahead of the parliamentary elections in April, Minister of Europe and Ownership Management Tytti Tuppurainen stated the government was unified in its view on ending Veikkaus’ monopoly on online gambling.
In an interview with MTV Uutiset, Tuppurainen stated she hopes to immediately begin an investigation into a new licensing system.
Should the study be completed in due time, Tuppurainen noted it would give a new government ample material to make a decision on a shift to a licensing system.
Tuppurainen said: “As the Minister of Ownership, I myself hastened to make a report on a possible transition to a multi-permit system. It is only a good thing that the opposition also shares this perception.
“There are parliamentary elections next spring, and it would be ideal that by the time of the [coalition] negotiations, we would have enough information to be able to make policies in the government negotiations.”
Finland is the only EU member state to still have an online gambling monopoly system, with Veikkaus – formed in 2017 when three firms merged – the only company permitted to take bets in the country.
Tuppurainen went on to argue the current monopoly model gave advantages to non-licesned firms in the market and that new legislation would level the playing field.
She continued: “Companies from abroad operate as if in a wild grey zone. They are not subject to the same liability regulations that apply to Veikkaus.
“The situation naturally causes gambling disadvantages and at the same time the taxman’s hand is twisted, which means that the profits from gambling also go past Finland to foreign countries,” she added.
The news from the government comes after Veikkaus indicated its support for a legislative change in September 2022.
Veikkaus recorded significant downturns in its market share, nearing around 50%, which CEO Olli Sarekoski labelled as a “critical limit”.
Speaking to EGR, Sarekoski said: “Unless this drastic downward trend can be stopped, we should start considering whether all gambling should be made subject to the same regulation in Finland.
“That could serve the prevention of the harmful effects of gambling as a whole, secure the company’s future, and thereby work to the benefit of the Finnish people,” he added.