Veikkaus risks huge fine after advertising blunder
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29 Nov 2024 •
Reading time: 2 minutes Veikkaus, the gambling company with a monopoly in Finland, received a stern warning from the gambling authority last week. The reason? An ad that accidentally appeared around a program for children. The company now faces a fine of €2.9 million, along with a 30-day ban on marketing. Not just any warning, then.
In a response, Anu Kytö, marketing director at Veikkaus, called the error a “human error”. “We are very sorry that this happened,” she said. “We are working hard to improve, but this shows that there is still work to be done.”
Strict rules for Veikkaus
Veikkaus is the only gambling provider in Finland with the exclusive rights to advertise. But that freedom comes with a laundry list of rules. The gambling authority strictly monitors whether Veikkaus complies with them. Think for example of the ban on targeting minors, romanticizing gambling or promoting bonuses.
The July incident, in which an advertisement was shown during a children’s program, was a clear violation of those rules. Veikkaus has since announced that it is working closely with the authorities to prevent similar mistakes in the future.
New interpretation of the rules complicates everything
The problem does not stop with this error. In May, the Gaming Authority already asked for an explanation about advertisements around programs that are intended for adults but are also watched by many minors. This raised questions about the way Veikkaus determines where its advertisements can appear.
Sauli Asikainen, commercial director of broadcaster MTV, defended the existing system. “We have clear agreements: if more than 70% of viewers are over 18, Veikkaus advertisements can be shown. This model has existed for years and is known to the authorities. But now it seems that the rules are getting stricter.”
Major changes coming in 2026
More changes are in the pipeline for the Finnish gambling market. The market will be liberalized from January 2026. This means that other gambling companies will be allowed to enter the market, which will cause Veikkaus to lose its monopoly. The European Commission is currently reviewing the new legislation, and the Finnish parliament will vote on it in 2025.
In the meantime, Veikkaus is trying to prepare for the future. The company is working on new marketing strategies and emphasizes that it will continue to follow the rules of the authorities closely.