Finland’s Health Institute Criticizes Online Gambling Market Plans

Finland’s Health and Welfare Institute Raises Alarms Over Proposed Online Gambling Market Reforms

In a move that has sparked significant debate, Finland’s government is planning to open its online gambling market to competition by 2027, ending the longstanding monopoly held by Veikkaus. While this proposal is seen by some as a step towards modernizing the industry, the Institute of Health and Welfare (THL) has raised serious concerns, warning that the shift could prioritize industry revenues over public health and potentially exacerbate problem gambling.

A Shift from Monopoly to Competition

Finland’s current gambling landscape is dominated by Veikkaus, the state-owned company that has held a monopoly on all gambling activities. However, with unlicensed operators capturing nearly half of the online gambling market in Finland, the government is now considering a competitive licensing framework to better regulate the industry. The proposal, set to be implemented in 2027, aims to bring these operators under a legal umbrella, thereby increasing state control and revenue.

However, the THL has voiced strong objections to these plans. The institute warns that opening the market to more operators could lead to an increase in problem gambling, which is already on the rise. According to the THL’s latest study, over 150,000 people in Finland, or 4.2% of the population, are either problem gamblers or at risk. This represents a significant increase from 3% in the previous year, underscoring the growing public health challenge.

Concerns Over Public Health and Consumer Protection

The THL’s primary concern is that the proposed reforms might not offer better consumer protections than the current monopoly. While acknowledging that the existing system has its flaws, particularly with the rise of unlicensed operators, the THL argues that the introduction of more competition could lead to increased exposure to the most addictive forms of online gambling, such as fast-paced games that have been linked to higher rates of addiction.

The institute is urging the government to consider limiting or removing these types of games from the market if it proceeds with the plan. It believes that without strict controls, the new system could lead to a surge in gambling-related harm, undermining public health efforts.

Finland’s Path to Gambling Reform

The Finnish Ministry of the Interior has recently completed a public consultation on the proposed gambling market reforms, with plans to present a draft bill in the spring 2025 parliamentary session. The draft legislation aims to strike a balance between opening the market to competition and ensuring that gambling disadvantages are minimized. Key elements of the plan include the creation of a new gambling regulator, responsible for licensing and supervision, as well as the establishment of a centralised self-exclusion database to protect vulnerable players.

The proposed timeline would allow operators to start applying for licenses in early 2026, with suppliers following in 2027. By 2028, only games from licensed software providers would be permitted in the Finnish market, ensuring a higher level of oversight and security.

Veikkaus Prepares for a New Era: Veikkaus has already started adapting to the anticipated changes. The company has closed Casino Tampere and several gaming arcades as part of its restructuring efforts. It also plans to separate its lottery and land-based gambling operations from its online gambling business. Interestingly, the government has hinted at the possibility of selling its stake in Veikkaus’s online gambling arm, signaling a potential shift in strategy.

As Finland moves towards a competitive online gambling market, the concerns raised by the Institute of Health and Welfare serve as a critical reminder of the potential public health risks. While the government aims to regulate the market more effectively and capture lost revenues, it must carefully consider the implications for problem gambling and ensure that consumer protections are robust. The balance between economic interests and public health will be crucial as Finland navigates this significant regulatory transformation.