The Finnish government has announced a groundbreaking shift in its gambling policy, aiming to dismantle the long-standing monopoly of Veikkaus by 2026. This decision will pave the way for a licensing system, allowing various gambling companies to operate within the Finnish market. While Veikkaus will maintain exclusive rights to lottery and physical slot machines, online gambling will be opened to competition.
Key Points:
- Veikkaus Monopoly Ends: Veikkaus will lose its exclusive online gambling rights.
- Licensing System: Other companies can apply for licenses to operate online gambling.
- Revenue and Regulation: The new system aims to boost state revenue and regulate the market.
The Proposed Changes
The reform, prepared by the Ministry of the Interior, is set to move to the consultation phase. Despite internal disagreements, particularly between civil servants concerned about gambling harm and politicians favoring a more liberal approach, the proposal emphasizes channeling a significant portion of gambling activities to a regulated market. This includes imposing licensing fees and a proposed 20% tax rate on all licensed operators, including Veikkaus.
Implications for the Future
The introduction of a competitive market is expected to increase state revenue and improve regulatory oversight. By attracting international gambling companies, Finland aims to curb the flow of money to unregulated offshore operators. This could lead to better consumer protection, more responsible gambling measures, and increased investment in the local market.
However, the transition poses challenges. There are concerns about increased gambling advertising and the potential for higher gambling addiction rates. The government must balance market liberalization with robust regulatory frameworks to mitigate these risks.
The reform signifies a significant shift in Finland’s approach to gambling, aligning more closely with models seen in Sweden and Denmark. If successful, it could serve as a blueprint for other countries considering similar changes.
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