Finland Consults on Lottery Act Changes: Scratch Cards as Gifts and Player Identification Modifications

The Finnish Ministry of the Interior has launched a public consultation regarding proposed amendments to the Lotteries Act and Gambling Act. Key proposals include permitting the giving of scratch cards as gifts and introducing new provisions for player identification in physical scratch card purchases.

Key takeaways

• The Ministry of the Interior is inviting feedback on changes to Finland's Lotteries Act and Gambling Act.
• Proposed amendments would specifically allow scratch cards to be presented as gifts.
• New regulations concerning player identification for physical scratch card purchases are also under consideration.
• The consultation period concludes on July 10, 2024, with legislative changes aimed for implementation in 2025.

Background & context

The Ministry of the Interior announced on June 19, 2024, that draft government proposals concerning legislative revisions to the Lotteries Act (Arpajaislaki) and Gambling Act (Rahapelilaki) have been circulated for public review. This consultation process seeks input on proposed changes that primarily concern the offering and acquisition of scratch cards within Finland. The ministry's initiative forms part of ongoing efforts to modernise and refine the national gambling regulatory framework, ensuring it aligns with contemporary societal practices while upholding responsible gambling principles. The proposed amendments specifically address how consumers interact with certain lottery products.

A central component of the proposed amendments permits the giving of scratch cards as gifts, a practice currently not explicitly allowed under Finnish law without circumventing identification requirements. This change acknowledges the social custom of gifting scratch cards for events such as birthdays or holidays. Additionally, the draft legislation outlines new stipulations regarding player identification when purchasing physical scratch cards. These measures are designed to strengthen age verification and limit problem gambling, aligning with broader responsible gambling strategies implemented across the Finnish market. The exact method of identification and its practical application at points of sale are subject to the consultation's outcomes.

The timeline for these legislative changes indicates that the public consultation period will run until July 10, 2024. Following the feedback collection, the Ministry of the Interior will review the submissions and finalise the draft proposals. The objective is to present a government bill to Parliament during the autumn session of 2024. If approved through the legislative process, the new provisions are anticipated to come into force at the start of 2025, marking a significant update to how lotteries and certain gambling products are regulated in Finland.

The Ministry stated that the proposed amendments stem from the need to adapt existing legislation to evolving consumer behaviour and technological advancements. The current Lotteries Act, for instance, mandates player identification for all physical lottery games, which implicitly restricts the gifting of scratch cards. Removing this barrier for gifting, while maintaining identification at the point of sale, represents a nuanced approach to regulation. The proposals aim to strike a balance between consumer convenience and the imperative for robust responsible gambling controls, particularly concerning preventing underage gambling and excessive play.

The legislative reforms follow the broad policy lines set by the current government programme. The government has committed to reviewing the national gambling system, particularly regarding responsible gambling measures and consumer protection. These specific amendments concerning scratch cards and identification contribute to the broader goal of modernizing the gambling regulatory landscape, which also includes discussions around the future of Veikkaus's monopoly and potential licensing reforms. The Ministry of the Interior, as the responsible body for gambling policy, is spearheading these targeted changes to improve the effectiveness and clarity of the Lotteries Act and Gambling Act.

These proposed changes will impact Veikkaus, the state-owned gambling operator, as they directly concern products it offers. Veikkaus currently holds the exclusive right to operate lottery and gambling games in Finland. Adjustments to identification requirements for scratch cards and the legality of gifting them will necessitate operational adaptations for Veikkaus and its retail partners. The consultation offers stakeholders, including the public, industry representatives, and responsible gambling advocates, an opportunity to provide input on the practical implications of these proposed legal shifts before they are formally presented to Parliament.

Impact on operators

Veikkaus, Finland's state-owned gambling operator, will need to adapt its operational procedures for scratch card sales to incorporate new identification requirements and accommodate the gifting provision, once the legislation is enacted.

Impact on suppliers

Limited direct impact on gambling suppliers as the changes primarily relate to lottery product distribution and retail processes within Finland's state-controlled monopoly.

Market impact

These legislative proposals aim to modernise aspects of Finland's Lotteries Act, particularly concerning scratch cards, by balancing consumer convenience with enhanced responsible gambling measures. While not fundamentally altering the monopoly, they represent a step in the ongoing evolution of Finnish gambling regulation, potentially influencing future discussions on broader market reforms and consumer protection strategies within the Nordic region.