Proposal on a new gambling operator sent for comments

Ministry of the Interior informs together with Ministry of Agriculture and Forestry, Ministry of Education and Culture, Ministry of Social Affairs and Health and Prime Minister's Office

A draft act on a merger of the gambling activities of the three current gambling operators – Veikkaus, Finland's Slot Machine Association (RAY) and Fintoto – has been completed and sent for comments. According to the proposed act, the three current operators would be replaced by a new completely state-owned gambling operator, which would have monopoly in the provision of gambling activities in Finland. The change requires amendments especially to the Lotteries Act.

The current model with three separate operators' monopoly is ill-suited for the new range of gambling products and the current demand for games. In the single operator model, it would be possible to better channel the demand for games towards the range of legal Finnish games.

The merger would strengthen the monopoly of Finnish games. The monopoly is the best way to reduce the negative social and health effects of gambling and to prevent abuses. The new gambling operator could develop more effective tools to help problem gamblers control their gaming. These would include tools for gamblers to monitor their own gambling as well as tools to manage restrictions on gambling and close a gambling account.

The revenues of the Finnish gambling operators are used for non-profit purposes. Similarly, the revenues of the new gambling operator would be used to promote sports and physical education, science, arts, youth work, health and social wellbeing, and horse breeding and equestrian sports. The proposed act lays down provisions on the distribution of revenues between these purposes.

According to the proposal, the monitoring of gambling activities would be made more effective by strengthening the operational independence and status of the Gambling Administration Department under the National Police Board.

The proposal has been prepared in broad-based cross-sectoral cooperation. It is based on a preliminary survey completed in spring 2015 and the memorandum of understanding where the gambling operators, the state and representatives of the beneficiaries agreed on the principles for the merger.

The Ministry of Agriculture and Forestry and the Ministry of Social Affairs and Health have prepared the draft decrees on the procedures relating to the distribution of revenues. The draft decrees are sent for comments together with the draft act.

The deadline for comments is on 12 April 2016. The government proposal on the legislation on the merger is due to be submitted to Parliament during the autumn session 2016. The Government Ownership Steering Department of the Prime Minister's Office would be responsible for implementing the merger in practice together with the gambling operators. The objective is that the new gambling operator would start its operations on 1 January 2017.

Inquiries

Katriina Laitinen, Director of Legislative Affairs, Police Department, Ministry of the Interior, tel. +358 295 488 559, [email protected]

Pekka Hurtola, Senior Financial Counsellor, Prime Minister's Office, tel. tel. +358 295 160 143, [email protected]

Esko Pyykkönen, Special Government Advisor, Ministry of Education and Culture, tel. +358 295 330 395, [email protected]

Raimo Ikonen, Head of Department, Ministry of Social Affairs and Health, tel. +358 295 163 517, [email protected]

Tauno Junttila, Senior Agricultural Officer, Ministry of Agriculture and Forestry, tel. +358 295 162 290, [email protected]