Sat. Sep 21st, 2024
Finland online gambling authority warns of dangers posed by proposed market change

Mika Kuismanen, CEO of Finnish online gambling trade body Rahapeliala Ry, has warned against liberalising the gaming market.

The government in Finland has set out plans to open up the gambling market in early 2027. The aim behind it is to “prevent and reduce gambling disadvantages and improve demand into the legally regulated gambling system”.

However, Kuismanen claims that it will limit marketing and sponsorship, and believes it “will run into a wall”.

“The proposal contains several rather significant details that do not promote a well-functioning gambling environment,” he says.

“The nature can even be interpreted as encouraging players to stay or move to the grey market, which is run by unlicensed gaming companies.”

The proposed change also seeks to end the monopoly held by government-owned betting agency Veikkaus Oy.

Kuismanen released his statement following a consultation period operated by the government around the change that ended on August 18.

He states that an “unreasonable” amount of effort is being made to limit gambling marketing. This is due to the proposal stating that the licensee would only be allowed to market gambling and themselves.

Kuismanen then expresses concerns over how little is mentioned in relation to sponsorship.

“Since a typical feature of sponsorship is that the marketing is carried out through the sponsored object, i.e. a sports team, the general regulations regarding the marketing of gambling games are not suitable at all for sponsorship,” he said.

The proposal also includes a ban on bonuses and offers which he claims will leave licensed operators at a disadvantage. This is due to them having to compete with unlicensed operators that can attract players with offers.

All of this, he states, will push bettors towards the unlicensed gambling companies in Finland.

“Even though bonuses, sponsorship and marketing cause an initial reaction in certain circles, one should know how to look at the functioning of the market as a whole,” Kuismanen explains.

“However, we all want Finns to play with an official, regulated system.

“Game disadvantages can be controlled, and the country receives much-needed tax revenue.

“The current proposal contributes to feeding players directly into the hands of unlicensed game companies operating on the grey market.”

Aims of the gambling proposal in Finland

Jari Vähänen, a former Veikkaus executive, states the proposal’s goal is to raise the channelisation rate as high as possible towards legal gambling in Finland.

This focus aims to rebalance a market where the majority happens outside of the current monopoly.

Last year, Veikkaus reported that unlicensed play accounted for around 54% of the online gambling market in Finland.

By Xplayer