Finland Revises Social Assistance Policy to Include Gambling Expenditure
Finland has revised its social assistance policies to include both gambling expenditures and winnings. This update aims to monitor the financial impact of gambling on beneficiaries as the country transitions toward an open gambling market by 2027.
KELA’s Policy Update
The Social Insurance Institute of Finland (KELA) has revised its policies regarding gambling and social benefits, effective from October 2024.
Previously, KELA only considered gambling winnings when assessing social assistance for recipients, but under the new policy, gambling expenditures will also be evaluated.
Comprehensive Assessment of Gambling Activities
The policy change aims to reduce financial difficulties caused by gambling by allowing KELA to monitor both winnings and expenditures over a longer period.
KELA will assess customers’ gambling accounts by calculating the difference between stakes and winnings, giving a clearer picture of beneficiaries’ gambling behavior.
However, this assessment can only be conducted through Veikkaus OY accounts, Finland’s state-owned gambling monopoly.
All Veikkaus customers are required to register and can impose self-exclusion restrictions on their gambling activities.
Concern Over Use of Social Assistance for Gambling
KELA has reiterated that social assistance is intended for essential living expenses, such as rent and food, and has expressed concern that approximately 5% of social assistance recipients use these funds for gambling.
Marja-Leena Valkonen, General Manager of KELA’s Benefits Programme, stated: “We don’t tell our customers how to use their social assistance, but we are concerned when low-income individuals spend it on gambling. Social assistance is a last-resort financial aid meant for essential expenses like rent and food.”
Transition to an Open Gambling Market
Finland’s government plans to relaunch its gambling framework by 2027, opening the online gambling market to competition and ending Veikkaus’s monopoly.
As part of this transition, social assistance policies have been updated to better address problem gambling.
KELA will play a key role in providing the government with insights into the impact of gambling on social welfare during this process.