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The Finnish Ministry of Social Affairs and Health (MSAH) has said the preliminary report on the exclusive rights system contains two “fundamental problems”, as it throws its weight behind preserving the country’s gambling monopoly.
The MSAH criticised the report for not addressing the possible development of the current monopoly system and for focusing on improving channelling rates instead of reducing gambling harm in a press release on Monday (April 24).
Antti Koivula, a partner and legal advisor for Finland-based Legal Gaming Attorneys at Law, said the announcement makes it “clear that the attitude towards abolishing the long-standing monopoly system varies between different ministries and other governmental entities”.
“There are several ongoing internal struggles and these may well form speed bumps for the ongoing shift to the licensing system. Secondly, when further studies are to be conducted or preliminary reports drafted, it is not meaningless which ministry initiates and supervises the work,” Koivula said.
The government report published on April 17 by the Ministry of the Interior revealed the number of gamblers not using the monopoly system has remained stable in recent years at around 5-6 percent; however, the amount of money that is lost is estimated to be about €500m to €550m per year.
Ultimately, the report concluded by saying the market is at a “crossroads” and it must consider introducing a licensing system or more measures to prevent unlicensed online gambling.
However, the MSAH said its own data analysis found the government's income would not increase under a licensing model, but would more likely be lower than in the exclusive model.
“Big decisions related to the health and well-being of citizens should be made based on information and careful preparation. This point has been emphasised in a good way in the preliminary report as well,” the MSAH said.
The MSAH also praised Norway’s exclusive rights system, which it says strictly limits both the monopoly's supply of gambling and the availability of gambling outside the licensing system.
“According to research, this is the most effective way to prevent and reduce harm. The results can be seen at least in the channeling. In the most recent estimates by H2 Gambling Capital, the amount of money played outside the system has dropped from €600m to €200m in Norway,” the ministry said.
The report studied the gambling systems in Sweden, Denmark, the Netherlands and France, which all have at least partial licensing systems in place, and Norway, which has a monopoly system.
Countries that implemented licence systems were deemed to “have succeeded in significantly improving the degree of channelisation of online gambling. On the other hand, varying estimates have been presented during the survey work on the degree of channelisation of the Norwegian exclusive rights system”, according to the report.
Moving forward, the MSAH wants those in charge of the decision-making process to be patient and develop an evidence-based gambling policy.
“It is possible to assess and implement the necessary measures in the coming government term,” the ministry said.
The winners of Finland’s recent general election have said they are keen to “give up” the Veikkaus monopoly and move the country to a licence-based system for online gambling.
“At the same time, the NCP also wants to do more about the problems gambling is causing some people,” a spokesperson for the party recently told VIXIO.
