Finnish Politicians Support the Government’s Plan to Replace the Veikkaus Monopoly

According to local Finnish news service Yle.fl, the government’s decision to put an end to Veikkaus’s monopoly has received the support of a large number of political parties in the country. Among them, are the Centre Party, the National Coalition Party, and the Labour Institute for Economic Research.

Money and Market Share, the Main Factors Behind the Decision 

All three political parties expressed their positive views on the Tytti Tuppurainen at the start of the year.  Tuppurainen, who is the Minister of Europe and Ownership Management in Finland, explained her intention to initiate an investigation into the possibility of replacing the current licensing monopoly prior to deciding on the new legislation.

Centre Party’s chair Eeva Kalli called it “unsustainable” for gambling profits to keep ending up outside the country while causing harm within the country’s borders. 

The phenomenon occurs because lots of bettors in Finland place their bets using foreign companies located overseas. Since the companies do not operate according to the country’s player protection standards and regulations, this usually puts players in danger.

Foreign companies addressing the needs of the Finnish market go over the monopoly currently held by Veikkaus, the country’s government-owned betting agency created in 2017. 

Because of this occurrence, Veikkaus continues to lose important revenue while its market share keeps being severely affected. 

Legal advisor and partner at legal Gaming Attorneys at law Antti Koivula further explained for SBC News that “money and market share” were the main elements that convinced government officials to plan the changes in legislation.

Finlands, One of Europe’s Lasts Mohicans to Use a Monopoly 

In 2018, Sweden decided to drop the licensing monopoly model. This turned Finland into one of the last European countries to use this model which Koivula suggested should turn into a thing of the past.

The National Coalition Party’s head Kai Mykkänen considered monopolies were not a “good way of mitigating health dangers or other problems.” Mykkänen called monopolies “historical remnants.” 

The director of the Labor Institute for Economic Research Mika Maliranta spoke about the advent of technology which is usually a factor that reduces the impact of monopolies on a market. Maliranta emphasized that major problems existed in terms of online gambling regulations. 

Veikkaus has had a hard time maintaining a strong market share in recent times. Its gross gaming revenue for the first half of 2022 was estimated between €1-1.1 billion ($1.08-$1.19 billion). At the same time, offshore leakage of bets placed by Finnish bettors with overseas operators reached the €500 million ($542 million) mark.

Last September, Veikkaus’ deputy chief executive officer Velipekka Nummikoski told a media outlet in the country that the elimination of their monopoly may be the smartest decision. Finland may have a new licensing system in place sometime in 2025.