Veikkaus, the Finnish gambling monopoly, detailed plans to ring in 2020 with a set of new responsible gambling practices and policies after stinging criticism that it has not been doing enough to keep vulnerable customers from falling into dangerous gambling patterns.
However, the company noted it expects its annual earnings to drop by around €50 million as a result from its social responsibility push.
Veikkaus’ new operating strategy includes significant reduction of the number of slot machines it operates at kiosks, supermarkets, and service stations around Finland, implementation of a compulsory verification technology across the company’s gambling devices earlier than originally planned, and an overhaul of its marketing strategy to focus more on the promotion of responsible gambling.
In late October, the Finnish gambling monopoly announced that it would remove roughly 3,500 of its slot machines in 2020 and another 4,500 over the next five years. The company currently operates 18,500 gambling devices around the country. By the end of the above-mentioned five-year period, it will have around 10,500 machines.
Veikkaus also revealed earlier this year that it would roll out its special compulsory identification technology across its gambling machines by 2021, a year earlier than previously announced.
Among other things, the technology will enable gamblers to bar themselves from playing on the machines temporarily or even permanently. Veikkaus CEO Olli Sarekoski said in October that the planned changes across their slot machines would reduce the gambling operator’s annual profit by €150-200 million when implemented.
Marketing Overhaul
Veikkaus promised that it also introduce changes in the way it advertises its products in a bid to promote gambling in a socially responsible manner. Its marketing overhaul was prompted by the massive public outcry the operator faced in the summer over a radio advertising campaign that featured regular gamblers who were encouraged by a therapist to indulge their habit.
The company suspended the controversial ad campaign and announced plans to dramatically overhaul its marketing approaches. It later on became known that Veikkaus would reduce the media channels across which it would be advertising its offering in future.
The company will also see changes in the way it reports its financial results. The new reporting policy will involve the profit Veikkaus generates from gambling activities being presented minus the winnings paid out to customers.
The gambling operator explained that the new financial reports will be consistent with the International Financial Reporting Standard and will be very similar to those compiled by its Swedish and Danish counterparts – Svenska Spel and Danske Spil, respectively.
The new way of reporting will be seen for the first time in the company’s upcoming 2019 Annual and Sustainability Report, which is planned to be published in February or March 2020.
Earlier this month, Veikkaus announced the six members comprising its newly established Ethics Advisory Board. The six-member panel is tasked with providing an outside view of how the operator’s board and management deliver on its social responsibility strategy. The Ethics Advisory Board will be expected to pay particular attention on the ethics of the gambling products provided by Veikkaus and how these are advertised.
Source: Veikkaus to enhance responsibility measures in 2020, iGaming Business
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