Finland gambling reform ignores charity fundraising, warns VaLa

Proposed reforms to gambling regulation in Finland could jeopardise a vital income stream for charities, warns the country’s fundraising association VaLa.

State-owned company Veikkaus has a monopoly on gambling operations in the country – although in practice, many Finns gamble online, outside of that monopoly. Veikkaus distributes hundreds of millions of Euros each year to the Finnish Government, which is in turn distributed to a range of good causes.

The Government’s proposed liberalisation would allow other companies to apply for gambling licences, potentially starting in 2026, although Veikkaus would retain a monopoly on some games.

Last year, 9% of Finns took part in gambling activities which raise money for charity – with this activity particularly popular among those aged 45-79, according to VaLa data. In addition, 7% took part in nonprofit-organised ‘goods lotteries’, which are also regulated but are outside of the Veikkaus monopoly.

VaLa says that in its current form, the bill would not require a company applying for a licence to state how its profits would be used. The licensing process should be able to take into account whether profits will go to good causes, it argues, saying that lower risk forms of gambling such as lotteries can be an important form of fundraising.

The organisation also suggests that Finland should learn from the example of other European countries, such as Sweden – it created a special classification for charity lottery operators, which raise more than €140m annually.

A statement on VaLa’s website says:

“The reformed Gambling Act would be a genuine opportunity to create a structure that supports the financing of a diverse field of organisations, therefore contributing to wider society.”

Image by Veikkaus