Many Finns Are in Debt Thanks to Their Gambling Spending
According to a recent survey, gambling and betting are Finland’s third biggest debt contributors.
Key Facts:
- A Finnish law firm carried out a survey looking at debt contributors
- It found that gambling and betting were the third biggest contributors
- This comes as Finland’s gambling sector undergoes some key changes
A law firm in Finland that focuses on serving clients with financial issues has carried out a survey on people in debt. Takaisinperintä asked 765 people why they had taken out payday loans, which they hadn’t yet paid back in full.
About a quarter (28%) of those who replied said they had taken out loans to cover gambling and betting costs. This was the third-biggest debt contributor behind clothing/electronics/accessories in second place and household bills in first place.
Reforms to Finland’s Gambling Sector
The results come at an important time for gambling in Finland. The country’s gambling sector has been operating as a monopoly, though it’s being converted to a multi-licence market. The government put the legislation to parliament earlier this year, and the market should formally launch in 2026.
Veikkaus Oy, which has been in operation since 2017, is the government-backed betting agency that currently has a monopoly over gambling in Finland. The company has approved the government’s plans to change the current system.
This is because many people who gamble for real money in Finland don’t do so with Veikkaus Oy. In other words, they place bets and wagers at websites and real-life venues that aren’t regulated and don’t offer enough protection.
When the new legislation comes into effect, Veikkaus Oy will likely retain control of land-based gaming venues and lotteries, while private companies will deal with online casinos and betting sites. However, this arrangement hasn’t yet been confirmed.
The Finnish government doesn’t want too many people gambling with operators who aren’t based in the country. This is because they don’t contribute to Finnish taxation or offer the levels of protection regulated companies are required to provide.
If the changes go ahead, the government should be able to earn more revenue from gambling taxes, which can go towards good causes and important projects. The government should also be able to better protect a greater number of gamblers.
Comments on the Legislation
The Vice Chair of Veikkaus’ Supervisory Board and Chair of the Finns Party, MP Jani Mäkelä, has said the following about the new legislation:
With the new licensing model, these companies can apply for a licence to operate in Finland, and we can finally bring that revenue under national control.– Jani Mäkelä, Finnish MP Talks About Gambling Reform, SBC News
He also said that having competition will encourage Veikkaus Oy to improve its services and offerings, which can only be a good thing for consumers. He added that the legislation is about making things fair and ensuring that Finnish gambling is regulated to a high standard and beneficial to Finland.
Interpreting the Survey Results
Some in favour of the reform believe that Takaisinperintä’s survey results show exactly why the reform is needed. If the legislation was passed, people wouldn’t feel the need to gamble with foreign operators and wouldn’t necessarily have to borrow so much money.
However, others think that if the legislation were to pass, it would create a more open market that could encourage people to gamble more than they do. It could also persuade people who don’t currently gamble to start gambling. This could lead to an increase in all sorts of problems.
That being said, there is still much work to be done before the legislation comes into effect. Policymakers can look at other countries that have carried out similar reforms to learn how best to proceed.
The government wants the transition from a monopoly to a smooth multi-licence model. Seeing how other countries have dealt with issues such as taxation, advertising, KYC (Know Your Customer) and player protection can make the transition seamless and effective.
