Finland: the effectiveness of the state monopoly, up for debate
Finland is one of the few European countries with a state monopoly on gambling and betting. The increase in illegal gambling and the ineffectiveness of measures to combat gambling addiction in the country have reopened the debate on the current system of state monopoly in the gambling and betting sector.
Finland, a country with a great gaming tradition, is moving towards a new paradigm. There are many voices from civil society that raise the need for a state agency capable of fighting problem gambling problems. ©tombrunberg/Unsplash
The Competition and Consumer Authority of Finland (KKV, for its acronym in Finnish) made an appeal again last August in favor of review the current legislative framework governing gambling in person and online in the Scandinavian country. The CEO of Veikkaus, the state-owned company licensed to offer sports betting, online gaming and lottery , affirmed the need for legislative reform by the government to combat illegal gambling and addiction problems.
In accordance with the legislation of the European Union, state monopolies in the field of gambling and betting are allowed on the condition that the necessary instruments are established to prevent the negative effects of this activity. Based on this precept, the KKV concluded in its report published at the end of 2019 that the Finnish system did not meet this condition for effective, consistent and routine supervision .
Among the various possible options, the KKV advocates for establish a control system to effectively oversee Veikkaus' efforts to provide safe and responsible gaming to users in Finland. Only in this way is it possible to determine whether it is necessary to replace the state monopoly with a licensing system such as that existing in most member states of the European Union.
“The prevalence of problems arising from compulsive gambling lies in the way the sector is regulated rather than in the way it is organized. The current regulation on gambling should first focus on a single body and make it more effective. Only after this could we consider whether it is necessary to change the system”" – Anu Raijas , director of the research department at the KKV in press release
Norway, another of the few European state monopolies in the field of gambling and betting, has already initiated the necessary procedures to unifying all regulations on gambling , maintaining the current state monopoly situation. In its report, the KVV analyzed the legal forms of two other Scandinavian countries: Denmark and Sweden .
The game: a tradition for debate
With a population of about 5 million, Finland makes up the 4.1% of the market share in Europe according to data from 2018. The latest annual report of the Institute of Health and Well-Being on gambling points out that the figures of problematic gambling and with the potential to become an addiction dropped several points compared to the previous year (1.6% and 10.7%, respectively).
In recent years, public opinion has changed its position on gambling. In a survey conducted by the Institute of Health and Welfare in 2019, 52% advocated removing these terminals from public spaces and dedicate special rooms for the enjoyment of the game .
In response to an increasingly intense social response against gambling, Veikkaus committed in December 2019 to uninstall 3500 slot and video poker terminals from your national network in public establishments such as supermarkets, restaurants, bars or service stations. However, the COVID-19 crisis has made the company recalibrate, who has confirmed that by the end of 2020 he will have withdrawn a total of 8000 machines.
