Finland is expected to approve legislation that will end the disbursement of Veikkaus’ profits to social causes
The President of Finland is expected to approve legislation that will end the disbursement of Veikkaus’ profits to social causes.
In future, all profit from the state-owned gambling monopoly will be directed to the state budget.
The government claims that the change will aid responsible gambling efforts by ending the link between gambling and the financing of science, art, youth services, health and social welfare, and horse breeding and equestrian sports in Finland.
The Government proposes amendments to the Lotteries Act to make it compatible with a new model for financing activities with proceeds from gambling. From the beginning of 2024, Veikkaus Oy’s proceeds could be entered in the Budget without earmarking their purpose of use under the Lotteries Act.
The Government submitted its proposal to Parliament on 10 November 2022.
Under the Lotteries Act, Veikkaus Oy's proceeds promote sports and physical education, science, art, youth work, health and social wellbeing, and horse breeding and equestrian sports. According to the proposal, the proceeds would no longer be distributed among these specific purposes, and the non-profit activities which are currently funded with Veikkaus Oy’s proceeds would be financed from universal government income instead.
From the beginning of 2024, Veikkaus Oy’s proceeds would no longer have specific uses but they would be channelled into universal government income and allocated for paying any items of expenditure in the Budget. The legal provisions on the purpose of use of Veikkaus Oy’s proceeds, on entering the proceeds in the Budget and on rendering the accounts would be amended to correspond to the new financing model.
The Ministry of Education and Culture, the Ministry of Social Affairs and Health and the Ministry of Agriculture and Forestry are preparing the legislative amendments that would affect their branches of government. In the new financing model, these ministries would continue to decide on the awarding of discretionary government grants and on the central government transfers within the budget appropriations. After the ministries have drafted the government proposals, Parliament will discuss them all at the same time.
The amendments are based on the Government’s decision to introduce at the beginning of 2024 a new financing model for the non-profit activities currently financed with gambling proceeds. In February 2022, a state secretaries’ project group and a parliamentary monitoring group published a proposal for a new financing model.
Improving the prevention of gambling-related harm
The Lotteries Act regulates gambling. The new financing model is expected to clarify the system of how gambling services are provided in Finland. In line with the Government Programme, the basic premise of the reform is that the gambling system will continue to be based on a state monopoly.
The legislative amendments also aim to improve the prevention of gambling-related harm. The gambling policy, the monopoly system for gambling and the related regulation all seek to prevent harm caused by gambling. The current link between gambling proceeds and the activities financed with them has been seen as problematic for combating the harmful effects of gambling, as linking these two aspects may create conflicting incentives within the gambling system by emphasising the importance of gambling proceeds.
The Act is due to enter into force on 1 January 2024.
Inquiries:
Elina Rydman, Ministerial Adviser, tel. +358 295 488 586, This email address is being protected from spambots. You need JavaScript enabled to view it.
Akseli Koskela, State Secretary, tel. +358 50 418 2274 This email address is being protected from spambots. You need JavaScript enabled to view it.
Valtioneuvoston yleisistunto 10.11.2022 VN 98/2022 (In Finnish)
Decision in Finnish Hallituksen esitys SM/2022/92 https://valtioneuvosto.fi/en/-/1410869/government-proposes-amendments-to-the-lotteries-act-due-to-a-new-financing-model ----------------------------------------------
Tearing Down the Walls
Should the monopoly end, the online casino and betting markets could open up to competition. Veikkaus would remain only in so-called proximity games, such as slot machines, lottery games, and Lotto.
I have expedited a study on the possible transition to a multi-permit system. It is only a good thing that the opposition also shares this view,” said Finnish Minister of European Affairs and Ownership Steering Tytti Tuppurainen.
Matters related to lottery regulation are under the control of the SDP and the Minister of Local Government, Sirpa Paatero. The latter is also the chairman of the party council, so she speaks for the SDP.
Tuppurainen hopes that momentum will pick up soon, according to comments she provided to Norway’s MTV News in a recent interview. She’s hoping dedicated research on the subject can begin this month, with a response possible before parliamentary elections this April.
Member of Parliament Sari Multala of the Conservative Party supports the transition, as well. She is a part of a government coalition creating the possible gambling policies.
The political coalition has come together to agree on several points. In addition to a desire to move away from the monopoly, they admit that digital gaming is taking over and that a sole operator is hindering growth. As a result, more consumers are playing through offshore sites, and Finland isn’t receiving any financial benefits.
Finland’s Ministry of the Interior could weigh in on the review sometime this month.
Veikkaus Making Changes
With Veikkaus set to continue overseeing the lottery segment, it continues to introduce changes to offer a safer gaming experience. It recently announced that it will start requiring identification in all coupon games, like scratch-offs, this year.
In practice, this means that playing certain games could come to an end. Until now, many people bought a coupon for a particular lottery game from a kiosk or store, which they have shared among several players.
In the future, the lottery vendor will require identification from all members of the group. This will make purchasing a ticket more cumbersome and could turn some buyers away.
The background of the mandatory identification is the Lotteries Act, which entered into force at the beginning of 2022. That law requires identification for all gaming.
Veikkaus sees it as a requirement to help prevent gambling problems. The data can be used to identify at-risk gamblers, and the lottery operator also has the option to prevent the ID holder from gambling if necessary.
The deadline for the change is July 1, 2023.