Gambling-related issues appear to have a stronger association with online gambling platforms. This is particularly true for platforms with no authority to run or advertise gambling facilities in Mainland Finland under the Lotteries Act. Over the past few years, approximately 5-6 percent of adults has used gambling facilities on such unauthorized websites. According to the estimates from the National Police Board’s Gambling Administration, the annual losses in gambling facilities out of Mainland Finland amount to around EUR 250-300 million.

Objective: Preventing Harm and Safeguarding Consumer Interests

Starting in early 2023, payment blocks will be implemented for gambling facilities. The primary objective behind these blocks is influencing the landscape of gambling facilities in Mainland Finland. Note that their aim is to effectively prevent harm by impacting the convenience of such services. Unlike gambling facilities out of Mainland Finland, which are not subject to regulation under the Lotteries Act, the decision to limit the accessibility of gambling facilities was made to shield consumers from the potential harms of gambling.

The implementation of payment blocks is expected to have a greater influence in preventing harm rather than diminishing it. These blocks are likely to have a more pronounced impact on infrequent and sensible players. Additionally, they will raise awareness about the risks linked with gambling overseas from a consumer protection perspective. In contrast, the National Police Board’s estimates suggest that the effect on risky and problematic people will be less significant.

Finnish gambling laws establish a state monopoly on organizing gambling through the Finnish Chamber of Lands. Nevertheless, foreign online casinos legally operate via the Internet from locations beyond the nation’s borders. Consequently, many individuals opt to engage in gambling outside the established exclusive system. Read more here to learn about the best foreign online casinos.

Limitations on Player-to-Operator Payments

The enforcement of payment blocks is expected to prevent players from making payments to gambling operators who have received the National Police Board’s decision to cease marketing activities that contradict the Lotteries Act. Commencing in 2023, these financial blocks will apply, at a minimum, to Viking Technology, N.V. and Nordic Tech Services N.V. Note that both are gambling operators prohibited from marketing gambling services until at least May 4, 2023. Currently, an administrative process is underway to potentially impose a prohibition on five overseas operators.

Juhani Ala-Kurikka, Senior Adviser at the National Police Board’s Gambling Administration, anticipates that the implementation of financial blocks will likely diminish the motivation of betting operators operating outside the exclusive rights system to direct their marketing efforts towards players living in Mainland Finland. These financial blocks will specifically target the betting operators identified by the National Police Board in their decisions to prohibit the marketing of betting services in breaking the Lotteries Act, as explained by Ala-Kurikka.

National Police Board’s Authority to Restrict Payment Transactions

The implementation of payment blocks heavily relies on payment service providers. Note that they are legally obligated to enforce the National Police Board’s directives for payment blockages. In cases where money is not appropriately obstructed according to these requirements, the National Police Board retains the authority to restrict a payment provider from initiating and executing transactions for betting services. To strengthen this prohibition, a conditional charge may be forced.