On the efficiency of Nordic state-controlled gambling companies

Nikkinen, Janne; Marionneau, Virve

doi:10.1177/1455072520968024

Cited by 16 publications

(19 citation statements)

References 36 publications

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“…The Finnish gambling landscape is characterized by a high prevalence of land-based EGMs in convenience locations. EGMs and casino games make up over half of the Veikkaus gross gambling revenue (Nikkinen and Marionneau 2020). EGM gambling in Finland and elsewhere is also connected to elevated gambling harms (e.g., Sulkunen et al 2019).…”

Section: Discussionmentioning

confidence: 99%

Socio-Demographics, Gambling Participation, Gambling Settings, and Addictive Behaviors Associated with Gambling Modes: A Population-Based Study

et al. 2021

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Online and land-based gambling differ in terms of participation and harms. Multimode gambling has also been distinguished as a separate mode. The current study uses the Finnish Gambling 2019 population study sample of 18–74-year-old past-year gamblers (N = 3,077) to evaluate how these gambling modes differ in terms of socio-demographics, gambling participation, gambling settings, and addictive behaviors. We used land-based gambling as the reference group in a multinomial regression model. Male gender (OR 1.48), age between 18 and 54 (OR 1.88), and high income (OR 1.87) were associated with online gambling. The odds of online gambling were higher among those who gambled at least monthly (OR 1.34) and among those with the highest gambling spending (OR 3.62). Younger age (OR 2.31), high income (OR 1.51), gambling at least four game types (OR 2.96), spending the most money on gambling (OR 4.56), and gambling in at least three gambling settings were associated with multimode gambling. Socio-demographics and gambling participation were indicators of gambling modes. Online gambling was more intensive while multimode gambling was more frequent and versatile than land-based gambling. However, this was not reflected as increased addictive behaviors, probably due to the harmful nature of Finnish land-based gambling.

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Section: Discussionmentioning

confidence: 99%

Socio-Demographics, Gambling Participation, Gambling Settings, and Addictive Behaviors Associated with Gambling Modes: A Population-Based Study

et al. 2021

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“…The results of this comparison are related to three possible reasons that we have identified in our previous studies (Mandolesi et al, 2022;Marionneau & Nikkinen, 2020a;Nikkinen & Marionneau, 2021;Rolando, Mandolesi, et al, 2020): the game portfolios and the operating costs, as well as private profit.…”

Section: Analysis Methodsmentioning

confidence: 59%

“…Offshore gambling provision is hindered by targeting payment processing channels, but online gambling on unlicensed websites is nevertheless popular, making up an estimated 18 percent of the Norwegian online market (Norsk Tipping, 2019). In Norway, the value of public revenue raised by the two monopolies is equivalent to the value of 0.6 percent of the national budget (Sulkunen et al, 2019), owing not only to the relative wealth of the country, but also to notably lower overall gambling volumes and especially to lesser reliance on highly addictive gambling forms such as EGMs than in Finland (Nikkinen & Marionneau, 2021).…”

Section: Description Of Included Companies and Operating Environmentsmentioning

confidence: 99%

“…These also vary between game types. Lotteries have been described as a particularly cost-effective way to produce surplus owing to their low return rates (McGowan, 2001), but other research has shown that fast games, such as electronic gambling machines (EGMs), produce a more significant surplus owing to greater volumes (Nikkinen & Marionneau, 2021). This type of ''efficiency'' in terms of raising monetary surplus should nevertheless not be taken at face value.…”

Section: Introductionmentioning

confidence: 99%

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Does the System Matter? Surplus Directed to Society in Monopolistic and License-Based Gambling Provision.

Marionneau

Mandolesi

Rolando³

et al. 2022

JGI

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The comparative advantages of license-based and monopolistic gambling regimes have been discussed in previous literature from the perspective of their capacity to prevent harms, but less is known about the ability of different regimes to produce public revenue. Gambling is nevertheless an important source of revenue for public service provision. The current paper compares figures from the financial statements of two monopolistic gambling providers in Finland (Veikkaus) and Norway (Norsk Tipping), to four license-based companies operating in the Italian market (Snaitech, Sisal, Gamenet and HBG gaming) to analyze how much surplus they contribute to their host societies and what kind of factors these amounts depend on. The results show that overall, the Nordic monopolistic operations appear more effective in terms of producing gambling surplus to society than the Italian license-based companies. This difference is analyzed in terms of game product portfolios, operating costs, and levels of normal profit. The role of operating costs appears to be the most important factor explaining the lower surplus generated by Italian companies. However, the bulk of these operating costs are directed to the redistribution network which creates employment. If these employment effects are considered, both licensing and monopolistic regimes appear similarly effective. We conclude by problematizing the use of financial effectiveness as a measure for good gambling policy. High surplus collected for societies is also related to high overall gambling volumes that go against public health objectives of reducing harms.

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“…The initial removal and later limited reintroduction of EGMs in Norway has been connected to reduced harms (Rossow & Hansen, 2016). The Norwegian example shows that it is possible to reduce gambling harms by increasing state regulatory power to limiting the availability and accessibility of EGMs (Borch, 2018;Nikkinen & Marionneau, 2021).…”

Section: Limiting Egm Availability Reduces Consumption and Harmsmentioning

confidence: 99%

Gambling harms caused by electronic gambling machines should be prevented with state control

Järvinen-Tassopoulos

Marionneau

Nikkinen

2021

Nordic Studies on Alcohol and Drugs

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Unlike in other Nordic countries, most of the electronic gambling machines (EGMs) are placed outside the Casino Helsinki and the gambling arcades in Finland. The placement of EGMs in non-casino locations, such as supermarkets, kiosks, and petrol stations, is matter of serious concern. We argue that availability and accessibility of EGMs has led to normalisation and banalisation of gambling in Finland. Exposure to EGMs also put at risk vulnerable populations and problem gamblers, who already suffer from the negative consequences of gambling harms. Gambling companies’ self-regulation initiatives and corporate social responsibility programmes are not enough to prevent and limit EGM related gambling harms. We suggest that Finland should follow Norway’s example and limit the availability of EGMs and transfer them from non-casino locations to gambling arcades. Finnish EGM policy should be a question of public policy guided by public health concerns.

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On the efficiency of Nordic state-controlled gambling companies

Cited by 16 publications

References 36 publications

Socio-Demographics, Gambling Participation, Gambling Settings, and Addictive Behaviors Associated with Gambling Modes: A Population-Based Study

Socio-Demographics, Gambling Participation, Gambling Settings, and Addictive Behaviors Associated with Gambling Modes: A Population-Based Study

Does the System Matter? Surplus Directed to Society in Monopolistic and License-Based Gambling Provision.

Gambling harms caused by electronic gambling machines should be prevented with state control

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