NGOs Urge Finnish Gambling Monopoly to Appoint Health Experts to Board

Events & Reports

Finnish non-profit organizations working to prevent and combat gambling addiction have urged the government to appointed public health experts to the board of Finland’s state-run gambling monopoly, Veikkaus, local news outlet Yle reported over the weekend.

The NGOs havе also slammed the gambling operator for paying too little attention to responsible gambling and focusing too heavily on generating profits.

News about NGOs demanded changes to Veikkaus’ board come shortly after the company faced massive public backlash over a radio advertising campaign that featured therapists encouraging frequent gamblers to indulge their habit.

Veikkaus’ management said last week that they have decided to pull the adverts temporarily, and that they have realized their mistakes and would work to prevent any controversies relating to their advertising campaigns in future.

The latest wave of criticism toward the operator involves accusations that preventing excessive gambling among its customers is playing “a very small role” and that the Veikkaus board is too focused on earning money at the expense of the company’s policies concerned with problem gambling an assisting those who have succumbed to excessive wagering.

Bringing Health Experts to the Board

The Finnish Association for Substance Abuse Prevention (Ehyt) has urged Veikkaus and the government to bring health experts to the gambling operator’s board that would lobby for the implementation of tools and practices for the responsible provision of gaming and betting services.

Juha Mikkonen, the Executive Director of the Association told local media that “it would be preferable for the Veikkaus board, management and administrative bodies to also have expertise in preventing harmful gambling.”

Mr. Mikkonen also pointed out that Veikkaus could adopt a board composition similar to that of Finland’s state-run alcohol monopoly retailer – Alko. The company’s board includes Markku Tervahauta, Director General of the country’s National Institute of Health and Welfare (THL) and Kirsi Varhila, a senior officer from the Social Affairs and Health Ministry.

At present, each Veikkaus board member earns €2,000 per month plus an additional €600 for every meeting of the board they attend. NGOs have pointed to the fact that the salaries of Veikkaus’ management are tied to the company’s financial performance and its profits, and as a result problem gambling is paid less attention.

Transferring Oversight to the Social and Health Affairs Ministry

NGOs have also urged the government to transfer the ministerial oversight for the gambling operator to the Social and Health Affairs Ministry. The Prime Minister’s office is currently tasked with overseeing Veikkaus’ performance.

Mr. Mikkonen said that if Veikkaus’ main goal is to prevent problem gambling, that “could raise the question of whether or not ownership steering should lie with the social affairs and health ministry, which is responsible for work combating the dangers of excessive gambling.” The ministry is currently overseeing the activities of Finland’s alcohol monopoly retailer.

Sirpa Paatero, Finland’s Minister of Local Government and Ownership Steering, said that she thinks it is important that the government considers the ideas pitched by the NGOs “when subsequent board members are selected.”

Minister Paatero also promised to review the current system of performance incentives for board members. She told local media that it is important “to have performance targets to ensure that Veikkaus functions well, but it would be good to see whether or not they include responsibility for problem betting rather than euro-based results.”

Veikkaus is currently the only gambling operator authorized to provide gaming and betting services, both online and at physical properties, on the territory of Finland. Despite pressure from EU authorities, local lawmakers have maintained that the monopoly model is the best one for the country.

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