Hot Features
Premium
Register for real-time alerts, custom portfolio, and market movers
There have been strict regulations on the online gambling market set in several European countries over the past six months. This happened as a result of the increased rate of gambling addiction around Europe. In May 2019, news came out that there will be fresh new set of restrictions on the gambling ads in Finland. NetticasinoHEX.com gives a detailed overview on this new rules.
This is really interesting as there’s only one state-run company that’s allowed to offer gambling services in Finland, called Veikkaus. Now, the marketing efforts of the company are expected to be limited drastically.
There used to be three different entities that offered online gambling services in Finland, each one controlled by the government. However, in 2017 they merged together under one big monopoly – Veikkaus. The European Union questioned whether or not the country had the right to create and organize a gambling monopoly. But, Finnish lawmakers claim the monopoly is set with the purpose to protect Finnish players from abuse and gambling addiction. That’s how Finland got a EU approval.
Veikkaus still exists today, but the idea to avoid gambling addiction didn’t quite work. In fact, the Institute for Health and Welfare in Finland reported an increase in the problem gambling.
That’s why gambling adverts in Finland are facing new regulations. In May 2019, the Finnish police and Traficom, a gambling watchdog group, stated that they will tackle the issue of problem gambling in the country together. The goal of both parties is to eliminate all gambling ads on both TV and radio. So far this has been the biggest step when it comes to regulation of the Finnish online gambling market.
The Institute for Health and Welfare supports the ad ban, saying that the marketing efforts of Veikkaus are “at odds with public health communication.” According to the government body, the gambling ads should be controlled the same way alcohol and tobacco are.
On the other hand, Veikkaus claims that their marketing efforts comply with the current set of regulations. The Managing Director of the monopoly, Veipekka Nummikoski, says the only ones to blame for the aggressive marketing tactics to players in Finland are the foreign gambling companies. However, studies show different results. Apparently, the rise of problem gambling in FInland appeared right after Veikkaus became the only online gambling company in the state.
Despite Veikkaus’ statement, gambling adverts in the country are expected to increase. The inability to market on TV is expected to affect Veikkaus’s ability to target new players in Finland. But, is this going to make any difference?
Finland is not the only country in Europe to start restricting gambling ads. For example, the gaming companies in the UK can no longer advertise towards people under the age of 18. In fact, the UK prepares even stricter gambling ad laws. But, it’s still unclear how effective these restrictions are.
The rise of gambling addiction has forced many other countries in Europe to try different measures to reduce their problem gaming rates.
And, it’s almost certain that Finland’s state-owned Veikkaus will fight the new laws. When exactly the ban of gambling adverts will be implemented in Finland however is still unclear.
