Finnish Player Protection Proposals: Concerns from the iGaming Sector

Finland’s Ministry of Social Affairs and Health has introduced a series of player protection measures aimed at reducing gambling-related harm. These recommendations include:

• Stricter Loss Limits: Land-based slot machines would face more stringent loss limits compared to their online counterparts.
• Centralized Loss Limits: The government would centralize loss limits, which would be enforced daily, monthly, and annually.
• Expenditure Review: A centralized platform would allow players to monitor their gambling expenditures, with data reported to government authorities.

These measures are intended to enhance player safety and mitigate gambling-related issues. However, the industry’s response has been largely critical.

Industry Pushback

Wildz Group, a prominent player in the iGaming sector, has voiced strong opposition to the proposed regulations. They argue that the measures could weaken existing player protections rather than strengthen them. In their submission to the Gambling Harm Risk and Harm Assessment Group, Wildz emphasized that the recommendations might lead to a significant shift of gambling activities to unregulated platforms, echoing trends observed in other markets.

SkillOnNet’s Perspective

Similarly, SkillOnNet has described the proposals as excessively restrictive. They contend that such limitations could adversely affect channelization rates—the percentage of gambling that occurs through licensed operators. SkillOnNet argues that the focus should be on combating the black market rather than imposing stringent regulations that could drive players away from licensed venues.

The Black Market Dilemma

The potential for increased black market activity is a central concern among industry stakeholders. Wildz Group has pointed to Germany’s experience, where overly restrictive regulations have resulted in only 20-30% of gambling being funneled through licensed operators. They warn that Finland could face a similar fate if the proposed restrictions are implemented without a thorough assessment of their impact on player behaviour.

Channelization is crucial for ensuring that gambling activities remain within regulated environments, where players can receive adequate protections. SkillOnNet has highlighted that the proposed measures, such as strict deposit limits, could inadvertently encourage players to seek out unregulated sites. This shift not only undermines player safety but also limits the government’s ability to monitor and control gambling activities effectively.

The Impact on Problem Gambling

One of the primary goals of the proposed regulations is to reduce problem gambling. However, SkillOnNet has raised concerns that the restrictions could lead to unintended consequences. They argue that players may resort to creating multiple accounts across different platforms to circumvent deposit limits, ultimately increasing the risk of gambling-related harm.

Licensed operators like SkillOnNet believe that the focus should be on enhancing the duty of care provided by these entities rather than imposing blanket restrictions that could drive players to unregulated markets. They advocate for a more balanced approach that addresses the root causes of problem gambling while ensuring that licensed operators can effectively compete against illicit platforms.

The Consultation Process

The consultation period for the proposed recommendations is currently open until February 24. This window presents an opportunity for stakeholders to voice their concerns and influence the final regulations. Both Wildz Group and SkillOnNet have urged the assessment group to prioritize strategies aimed at eradicating the black market, emphasizing the need for a collaborative approach to player protection.

Recommendations for Improvement

The industry have suggested several measures that could enhance the effectiveness of the proposed regulations:

• Focus on Education: Implement educational programs to inform players about responsible gambling practices.
• Enhanced Monitoring: Develop robust monitoring systems to track gambling behaviour and identify at-risk individuals.
• Collaboration with Operators: Foster collaboration between regulators and licensed operators to create a more effective regulatory framework.