What Will Happen to Veikkaus Gambling Monopoly?

Finland will abolish the monopoly on gambling and move to a multi-license system. The Finnish government is considering a new model with plans to end the existing monopoly on gaming. New reforms can be carried out by 2025.

In an interview with the Finnish media, European Affairs Minister Tytti Tuppurainen said that negotiations are underway to introduce a licensing regime with the state agency Veikkaus.

Minister Tuppurainen added that significant reforms in gambling law require extensive research. In less than 3 months, on April 2, Finland will be electing a new parliament, and Tuppurainen demanded the study be completed as soon as possible. This will determine the benefits of ending the Veikkaus monopoly and introduce rules for gambling that will also protect players.

Government and Opposition Support Reform

The results of the study will allow the new government to begin the process of moving towards a licensing system in the new legislature. The government’s proposed gambling reforms are supported by all Finnish political parties in opposition, including Kokoomus, which is the most powerful party in the polls. The reforms will not affect land-based casinos and lotteries.

Background

The reason for this initiative lies on the surface. Now foreign casinos are forced to offer their services in Finland illegally, which affects the replenishment of the state budget. And the introduction of a licensing system would solve this issue. By the way, in the first 6 months of 2022, the online betting market in Finland was estimated at $520 million, and only 50% came from Veikkaus.

Veikkaus was created in 2017 from a merger between Fintoto, RAY (The Association of Slot Machines of Finland), and Veikkaus, which was formerly the state lottery management organization.

Veikkaus has a total annual revenue of 3.2 billion euros, with 340 million euros coming from the national lottery. Veikkaus’ income is distributed by the Finnish government.

The gaming industry opposes the monopoly and calls for its end. Tough rules also apply to players: the government blocks some IP addresses to prevent Finns from visiting foreign online casinos. Bets from foreign bookmakers are classified in the gray zone. The Sports Players Association of Finland has concerns that Finns cannot make a living from professional gambling.