Finnish Government to End Veikkaus Gambling Monopoly in 2023

Industry pundits and the Finnish gambling community have been calling for the Finnish government to end the age-old monopoly held by Veikkaus.

With the revelation that the government sees the value in disbanding its monopoly in favour of a licensed market, there are hopes that 2023 could be a landmark year for the Finnish gambling sector.

 Local Leadership Are Actively Engaged

In a recent interview with MTV Uutisten, the Minister of Europe and Ownership Management Tytti Tuppurainen announced a groundswell of support for transforming Finland into a regulated multi-licence gambling jurisdiction.

Tytti Tuppurainen said:

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“As the Minister of Ownership, I myself hastened to make a report on a possible transition to a multi-permit system. It is only a good thing that the opposition also shares this perception.”

Later adding:

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“There are parliamentary elections next spring, and it would be ideal that by the time of the government negotiations, we would have enough information to be able to make policies in the government negotiations.”

One fact that has not been lost on industry pundits is that the minister was not speaking in vague terms of things that should or could be done. Instead, she was discussing reports already underway and a parliamentary review timeline that could see the government actioning the shift away from a monopoly in 2023!

Mouth Shut Ears Open

The Finnish government has taken a lot of flack from the European gambling industry for its apparent resolve to abide by its monopoly despite proof that multi-license markets are safer and more profitable.

Speaking on creating a safe and even playing field for consumers and operators, she said:

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“Now, the game companies from abroad operate as if in a wild grey zone. They are not subject to the same liability regulations that apply to Veikkaus' playing. The situation naturally causes gambling disadvantages."

She also noted:

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“… at the same time, the taxman's hand is twisted, which means that the profits from gambling also go past Finland to foreign countries.”

These comments reveal that Tuppurainen and her peers are well aware of the advantages of a regulated market but were unwilling to rush such a significant transition. We have seen other markets like Sweden and the Netherlands use this "measure twice, cut once" approach. In those instances, it has led to a more robust and balanced jurisdiction for players and those in the business of providing gambling entertainment.

 Veikkaus Still Has an Important Role

While introducing a regulated multi-license regime will effectively end the Veikkaus monopoly, the state-run company will not be out of the gambling business for good.

Speaking on the role Veikkaus has to play, MP Sari Multala said:

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“The lottery and gambling machines would remain within Veikkaus' monopoly. It is easier to regulate when there is only one actor.”

This statement means that the company will continue to manage the country’s land-based gambling channels, such as slot machines in gaming halls and the national lottery. Veikkaus will continue to operate as an online casino operator in Finland alongside its newly licensed offshore peers.