The Finnish Ministry of the Interior has recently put forward a draft government proposal to revamp the country’s gambling system. This proposal, in line with the Government Programme, seeks to break up Veikkaus Oy’s current monopoly on betting and online casino games and introduce competition through a licensing model. The consultation period for this draft legislation is set to end on August 18, 2024.
Key Changes and Objectives
Under the new proposal, Veikkaus Oy will no longer have exclusive rights to organize betting and online slot machine games and casino games. These markets will be opened up to competition through a licensing system overseen by the Finnish Supervisory Agency. The main objective is to reduce harm related to gambling and direct demand towards a regulated gambling system.
Currently, Veikkaus Oy holds a monopoly over gambling games in Finland, but a significant amount of online gambling takes place outside of this system, involving unregulated enterprises. The new legislation aims to regulate these activities for better oversight and consumer protection.
Licensing and Supervision
The proposed act outlines the rules for licensed gambling and its supervision. Enterprises will be able to apply for licenses to operate gambling games in Finland in order to increase regulation and minimize harm related to gambling. There will be two types of licenses available: exclusive licenses and gambling game licenses. In addition, a specific software license will be required for providing gambling game software.
Under the new system, licensed operators will need to pay an annual supervision fee to the regulatory authority. Lotteries, pools, totalisator betting, physical slot machines, and casino games will still be under exclusive licenses, maintaining Veikkaus’ monopoly over these areas. However, the monopoly and competitive market activities will be separated into different entities within the same group.
Marketing and Player Protection
The draft legislation includes strict regulations on the marketing and sponsorship of gambling games. Licensed gambling enterprises will be allowed to advertise within certain restrictions to ensure that marketing efforts are kept at a moderate level. Prohibited marketing practices include collaborating with social media influencers on their accounts and targeting minors or vulnerable individuals.
A centralized register for self-imposed gambling bans will also be introduced, allowing players to exclude themselves from any gambling games offered by license holders. The act will also govern the registration of gamblers, verification of their identity and residence, age limits for gambling, and the use of gambling accounts.
New Supervisory Agency
A new Finnish Supervisory Agency will replace the National Police Board as the regulatory authority, operating under the Ministry of Finance. This agency will have extensive powers to regulate the market, including imposing sanctions, prohibiting unlawful activities, rescinding licenses, and conducting test purchases. It will also oversee compliance with anti-money laundering and terrorist financing laws.
The agency will utilize network barring and payment blocking to prevent unauthorized gambling and steer demand towards licensed operators. Additionally, the Ministry of Social Affairs and Health, through the Finnish Institute for Health and Welfare, will monitor, study, and assess gambling-related harms.
Implementation Timeline
The government has outlined a phased implementation plan for the new system:
– August 18, 2024: End of the consultation period.
– Spring 2025: Submission of the government proposal to Parliament.
– Early 2026: Opening of license applications for operators.
– End of 2026: Veikkaus’ monopoly on sports betting and online casino games comes to an end, with the company split into separate entities.
– Early 2027: Suppliers can apply for software licenses, and licensed gambling activities begin.
– 2028: Requirement for operators to use only locally licensed software providers.
This draft legislation signifies a significant change in Finland’s gambling landscape, aiming to establish a more regulated and competitive market. Feedback from industry stakeholders and government departments will be crucial in refining the proposals before they are submitted to Parliament.
