4 minute read
Lottery
from SBC Leaders Issue 13
by SBC Global
instruments to respond to competition are not allowed to be used. It now seems evident that responsibility is increasing.
On a positive note, the choice has finally been made, but I think it is far too late and no longer enough to save the situation at hand. Now there is a significant risk that the rate of problem gambling will not be heading in the right direction. At the same time, gambling profits will collapse, and, above all, Veikkaus will permanently lose its future competitiveness.
Included in the proposed legislation
is the mandatory identification of players - a measure which has already been introduced for land-based slot machines. The requirement to register for other gambling products will come into effect over the next few years. In terms of responsible gambling, this is
a good reform. But it is also something which will drastically impact gambling revenues.
The potential positive impact of identified gambling on business is based on the utilisation of customer data. However, it seems that Veikkaus' ability to use data as a modern business company will be restricted, or even denied. This shows that decision makers have no understanding of what can be done with customer data.
Using it is not automatically the same thing as adding gambling problems. It seems that the Finnish state no longer wants Veikkaus to even operate as a profitable business. At most, it seems like they want the company to just put its products on offer, as was the case in the 1980s. I'm sorry on behalf of Veikkaus' knowledgeable and skillful employees because they do not get to do the job properly.
However, there have been significant changes in slot machine operations over the past year. Veikkaus voluntarily decided to reduce the number of those machines across its land-based venues. However, the number of slot machine locations did not decrease in almost the same proportion. The change that has now come into force, making slot machine play only possible for registered customers. This can only be a good thing.
The explanatory memorandum to the new law states that slot machines' placement should aim for solutions that minimise the risks of problem gambling. However, many would like to see slot machines removed from public open spaces completely. I don’t feel that this should be the case.
Personally, I have never understood why slot machines can be kept in entirely open spaces in Finland. Slot machines are an integral part of gambling, but I think the machines' correct location would be mainly in arcades and other age-restricted
areas, following the Danish model. But even after new gambling legislation, this still won’t be the case in Finland.
One of the most positive reforms of the proposed legislation is the clarification over marketing strategies. The premise is that marketing should be moderated and be focused on games that don't pose a high risk to players. The weakness of the current legislation in force has been the definition of marketing and product information provision.
Several years ago, I was among those who planned the current gambling marketing policies, and I am ready to raise my hand and admit a mistake. I am glad that from the new legislation, the possibility to share product information is removed. Appropriate legislation should contain as few interpretations as possible, and the situation now seems to be improving.
The introduction of payment blocking will cause my blood pressure to rise. It could be the best solution for everyone. However, it is enough to say that this reform makes no sense. The reform's economic impact is entirely non-existent, and this will not reduce gambling problems, so why is such nonsense done? In light of Norway's experience, the blockings may restrict banks and major payment companies' activities. Still, they will be replaced very soon by new service providers beyond their control.
Personally, the most exciting reform proposal is the opportunity for Veikkaus, or its subsidiary, to start a new type of business. I was the CEO of that kind of subsidiary, Veikkaus Solutions Ltd, and most recently, my job was to prepare for re-starting a new business. Now it seems that Veikkaus would again have the opportunity to establish a subsidiary for non-gambling activities.
The intention is for the subsidiary to provide gambling products and services to other operators and not engage in consumer gambling activities. This is an excellent thing in the long run. Sales contracts for gambling products and services today are based almost exclusively on the revenue share model. The compensation received by the selling company is based on how much the customers of the buying company end up buying those products. Hopefully, the Finnish authorities will not interpret such sales for gambling purposes.
A massive opportunity for Veikkaus, which is still one of the best lotteries globally, would be to start international B2C gambling operations. Selling gambling products directly to customers in other countries would generate significantly more revenue than trading among gambling companies. However, B2C operations are not possible under the Finnish monopoly system. It would have been one additional primary reason for moving to a licence-based system.
This reform, as a whole, makes no sense. I consider it a much better option to omit this proposed change altogether and move on to the licence-based system's preparation.
