The state-owned gambling monopoly Veikkaus should no longer decide how its funds are distributed in grants, according to a proposal from the Finnish Competition and Consumer Authority (KKV).
Veikkaus is a significant source of funds for cultural, veterans’, youth, sporting and social and health care organisations.
In its fourth and final report on Veikkaus' operations published on Wednesday, KKV said that the Finnish state should be in charge of distributing the state-owned firm's funds, with grant money included in state budgets.
Changing the model would mean that funding of charities and other organisations would no longer rely on how much money gamblers lose, the report's authors said. Last year, the coronavirus crisis caused a major shortfall in Veikkaus' NGO funding levels.
While groups benefit from Veikkaus' funding, the current arrangement has made it difficult to focus on reducing the harms related to gambling, as the firm is generally expected to provide increasing amounts of funds.
The report, written by KKV economist Lasse Pöyry and research professor Mika Maliranta, said reaching a balance between harm and benefit is a challenge.
The authors also noted that reducing problem gambling would likely improve the overall well-being of society.
There are efforts underway to reform the Lottery Act in order to strengthen Veikkaus' position as a monopoly.
But the consumer authority's report noted that doing so requires justification for retaining such a monopoly, saying a balance needs to be reached between minimising harm while also reducing revenue losses.