Paf throws support behind Finnish licensing system
CEO Christer Fahlstedt calls on authorities to have the “courage” to reform market
Paf has urged Finnish authorities to abandon the current monopoly-based model and switch to the licensing and regulation of international online gambling operators.
In an op-ed published on the Aland-based operator’s website, CEO Christer Fahlstedt expressed concern about the future of current monopoly incumbent Veikkaus and its diminishing returns to the Finnish government.
Veikkaus has been severely impacted by Covid-19 and is facing a double hit with the introduction of mandatory identity verification technology on its retail slots portfolio, which could reduce revenue by up to €150m a year.
These measures could directly impact Veikkaus’ contribution back to Finnish society as required by Finnish law.
In response, Fahlstedt highlighted the benefits of opening up the Finnish market, citing the example of former Swedish monopolists Svenska Spel and ATG which have maintained a strong position in the re-regulated Swedish market despite the addition of international operators.
“With a licensing system for online gaming, Veikkaus would finally have an equal competitive position in online gaming as other foreign competitors, who would be subject to the strict regulation in Finland,” he explained.
“Veikkaus’ monopoly on slot machines and lotteries would be maintained, and the company would have the opportunity to become a significant player in online gaming,” Fahlstedt added.
As a way of improving channelisation to the monopoly and preventing problem gambling, the Finnish government has proposed blocking all online gambling sites other than those being used by Veikkaus, as well as the introduction of payment restrictions on Finnish players.
“Restrictions must be based on combating the disadvantages of gambling, but problem gamblers are quick to find ways on the internet to get past the limits set by the authorities,” Fahlstedt wrote.
“Those who drive payment blocking themselves know that it doesn’t work. As a tool, it is a heavy tool that is ineffective,” he added.
Fahlstedt instead suggested a regulated licensing system be introduced as a “significant improvement” on the current situation for at-risk gamblers.
“We have a widely-used European alternative, a regulated licensing system that would achieve the result that the government wants. Political decision-makers now need the courage to look at Finnish gaming system on the basis of facts,” he concluded.
In September the operator lowered its loss limit by a further €5,000 to €20,000, reiterating its commitment to responsible gambling.