Finland's Authority Calls For Establishment of Gambling's Central Regulatory Body

A voice calling for instatement of a central regulatory body for all things gambling has been heard by Competition and Consumer Authority (KKV) in Finland. This organization would like to see the gaming sector be oversaw by anyone other than operator Veikkaus which has the monopoly over this segment in Finland.

Not According to EU Standards

This would require a different, updated regulatory framework…

…which would replace the one now in place in Finland. There are several bodies that are in charge of several different aspects of gambling in this Nordic country and there is no sync between them. In fact, some of them are responsible for the same areas.

Such situation could give rise to problem gambling, as well. According to regulations by European Union, a monopoly is justified only in situations in which it helps prevent gambling’s negative effects.

Monopoly cannot be justified by funding for social causes, either.

A Single Body Must be Instated

Anu Raijas, KKV’s head of research, said:

“The prevalence of problem gambling is due more to how gambling is regulated than how it is organized. Current gambling regulations must first be centred around one body and made more effective.”

Parliament of Finland, the government and departments such as Ministries of Finance, Education, Culture and Interior. Monitoring and enforcement are in charge of the National Police Board. The government is advised on policies and next steps by the Gambling Advisory Board.

Veikkaus itself has a body above it, that oversees its activities – the Ethics Council.

KKV points out that the regulation of gambling market is shared by too many entities…

…and also that beneficiaries of funds raised through Veikkaus can place their opinion in questions of policy. This is seen as a conflict of interests.

Sweden were cited by KKV as examples of regulated markets where there is just one regulatory body. Having one would position Finland better for tackling illegal activities and enforcing controls.

Finns spend the most on gambling per year, according to some stats. On average, they spend EUR320 per person. This poses a certain risk for the population and one regulator would address that more efficiently.

This is all a part of KKV’s investigation of organizing and regulating alternatives for gambling in Finland. This is the first report in series of many (which will come over the coming months), while final conclusions will be published early next year.

Rising Voices

Veikkaus’ monopoly was the central theme of numerous debates over the last few months…

…as more and more organizations are asking for their monopoly to be ended. The operator has defended itself and had to counter the claims that they earn much more than what they report.

There were even some violent threats to Veikkaus, so much so that police had to intervene. CEO of Veikkaus Olli Sarekoski had to speak out:

“Veikkaus does not accept any threats against the company or our personnel, but we ask the police to investigate each threat.”

Source:

“Finnish consumer authority calls for regulatory overhaul”, igamingbusiness.com, October 29, 2019.