The Finnish gambling sector is at a crossroads as Finland moves to liberalize the industry and open it to global operators. Amid these changes, Swedish betting operator ATG has accused Veikkaus, the state-owned monopoly, of unfair practices aimed at solidifying its market dominance ahead of the transition. Here’s a closer look at the controversy.
Background: Transitioning Finland’s Gambling Market
Finland plans to end Veikkaus’ monopoly by 2026 and move to an open competitive market by 2027. Under this new model, international operators can enter the online gambling arena, but Veikkaus will retain exclusive control over lotteries and arcade slots. This regulatory change is intended to harmonize Finland’s policies with broader European Union trends and mitigate the growth of unlicensed gambling.
ATG’s Allegations Against Veikkaus
ATG, through a formal complaint to the Finnish Competition and Consumer Authority (FCCA), has accused Veikkaus of leveraging its monopoly to prepare for an unfair advantage in the reformed market. The key allegations include:
Termination of Partnership
Veikkaus ended its 15-year horse racing collaboration with ATG, barring Swedish players from betting on Finnish horse racing. This occurred after ATG declined to enter into a long-term agreement with Veikkaus stretching until 2030, a move ATG claims was calculated to disadvantage rivals during and after the market transition.
Exclusivity in Content
ATG alleges that Veikkaus has placed restrictions preventing Finnish horse racing content from being accessed on foreign betting platforms, adversely affecting ATG’s customers in Sweden.
Long-Term Media and Licensing Deals
According to ATG, Veikkaus has secured exclusive long-term deals with prominent media and betting firms, extending through 2030. These agreements potentially limit the market opportunities available to competitors post-liberalization.
Data and Pool Access Restricted
The complaint highlights Veikkaus’ refusal to share access to Finland’s tote betting pools and its rich database of 2.6 million players. ATG believes this gives Veikkaus a significant advantage, allowing it to dominate customer outreach and cross-selling efforts.
Veikkaus Strongly Denies the Allegations
Veikkaus has refuted all allegations made by ATG. Hanna Kyrki, the company’s executive vice president and legal counsel, labeled the claims as “incomprehensible and completely false.” Veikkaus confirmed receiving a clarification request from the FCCA and stated it will fully cooperate in the investigation but maintains that it has not engaged in any unfair practices.
Regulatory and Industry Implications
The liberalization of Finland’s gambling market reflects broader European trends. However, the ATG-Veikkaus dispute underscores the challenges of transitioning from a state-controlled monopoly to a competitive landscape. Critics argue that Veikkaus’ deep market integration and resources, combined with its existing partnerships, could distort fair competition unless stringent regulations are enforced.
Conclusion
As Finland prepares to liberalize its gambling industry, tensions between incumbents like Veikkaus and new market entrants are rising. ATG’s complaint serves as a litmus test for how effectively regulators can ensure a level playing field for all operators. The outcome of the FCCA’s investigation will be pivotal in shaping Finland’s gambling future.
