Finland Prepares for Gambling Reform: The End of Veikkaus' Monopoly

Finland has initiated a comprehensive project aimed at overhauling its gambling system, signifying the end of the era of Veikkaus' gambling monopoly. The decision to reform the country's gambling landscape follows extensive research and deliberation, which began after Finland's general election in April 2023. 

Over the next two years, the government will be working on legislative proposals to redefine the gambling landscape. This includes specifying the games covered by the licensing system, setting license fees and taxation rates, and developing tools to manage and regulate gambling activities. Additionally, there will be new regulations addressing gambling-related harm and strict control over the marketing of gambling activities.

To ensure that this reform is successful, the government has established both a political steering group and an intersectoral working group comprising key ministries and authorities. The project will also seek insights from experts representing various sectors. 

The government aims to present its reform proposal to parliament in the spring of 2025. The project is slated to run until December 31, 2025. The primary objective is to boost Finland's channelization rate, which currently lags behind that of similar nations, as per the preliminary study.

A spokesperson from the ministry stated, "The aim of the reform is to prevent and reduce the harm resulting from gambling and to improve the channelling rate of the gambling system in accordance with the Government Programme. The channelling rate describes the proportion of gambling stakes placed with regulated providers that hold a local license."

The preliminary study highlighted the increase in gambling activities outside the monopoly system, which led to considerable gambling-related harm. Two options were presented to reform the gambling system: reinforcing the existing monopoly system or transitioning to a licensing model for online casino games and online betting. The government has chosen to end Veikkaus' monopoly in these areas, while it is expected to retain its monopoly status for lotteries and retail slot machines.

To accommodate these changes, Veikkaus will restructure its operations, separating its monopoly activities and those in the competitive market into distinct companies within the same group. Furthermore, the project will examine the transfer of game machines to controlled areas, taking into account the social consequences of the license system, especially its impact on gambling-related harm.

Earlier this year, Veikkaus revealed plans to downsize its workforce and reduce the number of gaming venues as it prepares for the end of the country's gambling monopoly. This restructuring could result in the loss of approximately 240 jobs, and the number of gaming venues is expected to decrease from 65 to between 40 and 50. 

The upcoming gambling reform in Finland promises to bring significant changes to the industry while aiming to create a safer and more regulated gambling environment.