Is Gambling Monopoly in Finland Coming to Its End?

Since 2017 when it was founded by the merging of the three main gambling companies, Veikkaus has been the only monopole structure that implements the gambling laws in Finland. However, its financial results from the first half of 2022 scored a 5% drop in comparison to the same period in 2021.

So, in the summertime of 2022, the deputy CEO of Veikkaus, Nummikoski, stated that he should start a discussion on the monopole system of the Finnish gambling regulation. Does it mean that the gambling monopoly in Finland is coming to its end? Find out in this blog post.

Yet, this is only one of the major problems of the gambling regulation by Veikkaus in Finland. This prolonged failure of the gross gambling revenue is accompanied by the adoption of new resolutions to prevent gambling abuse, as well as the ever-increasing popularity of offshore online casinos.

The influence of the Danish and Swedish regulation models and the parliamentary election in April 2023 are also among many other factors that play a major role. In this blog post, we will discuss the gambling monopoly and will look into the future of Finland’s gambling regulation.

Chronology of the Issues with the Finnish Gambling Monopoly

Problems don’t come alone, and everything is a chain of events. Recently, there was a significant increase in activities towards changing the monopole structure of the Finland gambling regulation. One reason for it is the fact that there is no legislation preventing Finish players from playing at international (offshore) online casinos in Finland. To help you out understand the other reasons, you need to check the following chronological events.

Another potential issue with the gambling monopoly of Veikkaus is the place of Finland in the EU. Veikkaus is a result of 2017’s merging of the companies from the previous monopolistic 3+1 model of the Finish gambling regulation. However, the compatibility of the new regulator with the EU requirements is constantly questioned, as Finland is the only country in the union that operates gambling under a monopole system.

The Decline of Veikkaus in Numbers

On top of that, the vice president of Veikkaus, Velipekka Nummikoski, reported that the monopole organisation marks a significant decrease in revenue for 2022. This is not the reason, but only one of the many consequences Veikkaus must coop with. Check out the next list with more highlights about the decline of the FI gambling monopoly in numbers.

So, is the gambling monopoly in Finland coming to an end? We can only speculate that it is visible on the horizon, but there is no definitive answer. Maybe, the right answer is that the Finish gambling market is at a crossroads, which we will try to explain to you next.

Gambling Monopoly in Finland – At a Crossroads

The government is at the crossroad of reinforcing its current gambling monopoly system or changing it fundamentally with the introduction of a licensing system. Also, the role of EGBA and the EU regulation is very important, as Veikkaus is the only remaining monopole structure. Indeed, last year, EGBA started discussions on Finland’s gambling monopole policy, and in the video below, you can see a full webinar.

Veikkaus’s vice president confirms that Finland should switch to a licence model, as the domestic online gambling offerings are very difficult to compete with other offshore companies. Sooner or later, the gambling monopoly in Finland should choose a certain path, but there will not be a definitive answer until the next parliamentary election in April 2023.

What Is Next in the Gambling Policy of Finland?

This is only speculation, but if we must look into the future, we could say that Finland would adopt either the Swedish or the Danish gambling regulation model. In Sweden, for example, gambling companies obtain a business licence and are required to pay an 18% gaming tax, while in Denmark, they offer a ‘cooling off’ period to control gambling-related issues.

Finland undertakes responsible gaming very seriously. Perhaps, the state-owned gambling monopoly company will create an additional subsidiary to track gamblers playing at the best casino sites in Finland, or it will undertake new roles. As a result, it could oblige players to identify themselves just as they do at each in a land-based casino.

Gambling Monopoly in Finland Coming to an End Q&A

We don’t know with certainty if the gambling monopoly in Finland is coming to its end, but in our blog post, we tried to give you more details about the crossroads upon the FI government. If you still have any questions, please check out the next answers about the monopoly of the Finland gambling regulation.