India’s gambling laws are far from simple. The ambiguities make it difficult for the common man to interpret the relevant rules and regulations in a single, solid way.
This is where the country’s lawmakers can take cues from Finland’s unique and defined system of regulating gambling. Let’s discuss the top 3 things India can learn from the Finnish gambling laws and implement them on its own.
State Monopoly
Finland allows most forms of gambling but heavily regulates and restricts the domestic gambling market (online as well as offline) through a state monopoly by Veikkaus Oy. It is the only state-owned company that is authorized to provide gambling services in the country.
An exception is PAF (Penningautomatförening), another state-owned entity, which is responsible for providing gambling services on the Åland Islands – an autonomous region of Finland.
Please note that Finnish players are, however, not prosecuted for playing on gambling websites licensed and registered in other countries. However, they might have to pay taxes on their winnings to the Finnish tax authorities if playing at certain casinos. That’s why review websites such as Verovapaat Kasinot promote tax-free casinos.
The crux of the matter is, Finland’s model provides a high level of control over the industry, ensuring that the government can regulate gambling and limit the negative effects it may have on society. India could consider a similar approach, with a centrally-owned entity responsible for regulating and providing gambling services.
At present, gambling in India is a state subject. The central government has given each state the authority to formulate its own laws regarding the same. This is the primary reason behind the vast diversity in the regulations and the subsequent chaos and confusion. What one state deems legal, the other despises.
Nonetheless, gambling is mostly seen as an illegal activity nationwide. The setting up of land-based casinos is still limited to just two states – Goa and Sikkim and one Union Territory – Daman. No fully-fledged India-based online casino or betting site exists either.
The only exceptions are a few poker and rummy sites, which run because the Indian government has legalized them as they come with an element of skill and are not merely chance-based. But that’s hardly anything we can call a casino website.
Lottery divides the country as well. Only 13 states have legalized it. The rest see it as some kind of threat to the economy. To top it off, there is no centrally-owned company to oversee the mayhem. To each his own, says the central government!
In this context, adopting a Finland-style central monopoly will help India regulate and control its gambling market better. This system ensures that gambling is conducted in a socially responsible way and that profits are not siphoned off by unscrupulous operators.
Also, why let each state harbor its own perspective and let players reel in perplexity when everything can be brought under one roof, which is that of the government?
Transparency
Transparency is a critical component of Finland's gambling laws and regulations. It plays a vital role in ensuring that the gambling industry operates in a fair, responsible, and accountable manner.
Here are some of the ways in which transparency is enforced in Finland's gambling industry:
- Annual Reports: The Finnish government publishes an annual report on the gambling industry that includes detailed information on the industry's revenue, profits, and expenses. This report allows the public to see how the industry operates and how the profits are used.
- Public Information: The government also makes information about the gambling industry publicly available, including information about problem gambling and the measures in place to address it. This information helps players make informed decisions about their gambling activities and allows stakeholders to monitor the industry's impact on society.
- Player Data: The Veikkaus and PAF must collect data on their players, including information on their gambling activities and spending habits. This data is used to monitor player behavior and identify potential problem gamblers. It is also used to generate insights into the industry's impact on society.
- Accountability: The Finnish gambling industry is highly regulated, and the Veikkaus OY as well as PAF are held accountable for their actions. This accountability helps ensure that all gambling operations are run in a responsible manner.
India could adopt similar reporting requirements to increase transparency and accountability in the country’s gambling industry. After all, it’s not a secret that the government profits from gamblers as well as gambling businesses within the country and abroad.
Taxation
Finland's gambling laws have been the subject of controversy due to the country's state monopoly on gambling. As a member state of the European Union, the country is expected to not run a monopoly at all.
However, Finland has smartly managed to avoid the EU’s scanners by stating that all gambling in the country is non-profit. It means that profits generated are reinvested back into social welfare programs and other non-profit initiatives. Alongside, winnings go tax-free for the players.
Yes, Finland doesn't levy tax on gambling winnings unless those are from a casino not licensed in the EEA countries (European Economic Area). However, it taxes the Veikkaus to fill its exchequer and uses the money to promote science, social welfare, health, sports, horse breeding, and equestrian sports.
In contrast, India has taxes on all gambling winnings, including those won within the country. This is partly because the country has no other entity to tax regarding gambling and the collective taxes from all the land-based casinos and online real-money gambling sites wouldn’t bring in enough money.
This is where the country could consider revising its tax policies to align with Finland's approach and reduce the financial burden on players. Gambling can be legalized and regulated, and players kept away from such taxation.
To conclude, India could learn a lot from Finland's gambling laws, particularly regarding state monopoly, transparency, and taxation. Adopting these principles could help the country regulate its gambling industry effectively, minimize harm, and earn decent revenue in the process.
