Young adults must be protected in the reform of the gambling system

The life of a young adult involves an exceptional number of major life changes, such as the end of compulsory education, military service, first jobs, moving out of the parental home and entering education. Adulthood generally means learning to live a more independent life.

According to 2022 statistics from the Finnish Centre for Pensions, the average monthly income of men under 20 was EUR 1,137 and that of women EUR 870. For men aged 20–24, the average monthly income was EUR 2,013 and for women EUR 1,585. Limited financial flexibility makes the finances of 18–24-year-olds particularly vulnerable.

Young adults face the highest risk of indebtedness due to gambling

The financial pressure on young adults is reflected in statistics from the 2020s. According to both the Guarantee Foundation and the credit management company Intrum, the level of debt among young people has increased.

"Even fast food orders can nowadays be paid on credit or in instalments. The concept of one’s own money has become blurred, and financial education depends heavily on family background," says Senior Specialist Tomi Roukka from THL.

Of the phone and chat contacts received by Peluuri, a service supporting people with gambling problems, one third come from 18–24-year-olds, and nearly 90 per cent of them are men. This is the situation in the current monopoly-based gambling system, where real competition for customers and increased marketing are still just around the corner.

Age limits are an effective way to protect young people from the harms of addiction

The age limit for gambling was raised from 15 to 18 in 2011. This clearly reduced gambling among young people, together with other supporting measures such as strengthened supervision and identification. In the new gambling system, fast-paced online gambling products, where it is possible to lose large sums in a short time, will be opened to competition.

THL calls for raising the age limit for gambling to 20.

According to THL, the age limit for gambling should be raised to 20 at least for fast-paced and high-risk gambling products. Such products include betting and online casinos.

A uniform age limit of 20 for all gambling is also worth looking into. However, additional support measures are needed to ensure that raising the age limit does not lead to increased gambling outside the system among 18–19-year-olds.

"Raising age limits would be a significant measure to protect young adults at the beginning of their financial independence," says Research Manager Johanna Järvinen-Tassopoulos from THL.

"However, the world of online casinos is global, so it must also be ensured that young adults’ gambling is not directed to services provided by unlicensed operators," she continues.

Age limits have been raised in other countries that have transitioned to a licence-based system, such as Belgium and Estonia.

"In Finland, a 20-year age limit for gambling would correspond to the age limit for stronger alcoholic beverages. The same age limit is also desirable for tobacco and nicotine products," says Järvinen-Tassopoulos.

In the new gambling system, setting deposit and loss limits is left to the player

Deposit and loss limits are an effective way to prevent harms caused by gambling if they are properly regulated in legislation.

"A deposit limit is simply the amount you can transfer to your gambling account within a certain period, for example a month. A loss limit, in turn, is the maximum amount you can accumulate in losses during a certain period," Roukka explains.

According to THL, these restriction mechanisms are used inadequately in the new gambling system. Legislation only requires setting deposit and loss limits, and individuals can decide themselves how high to set them. In addition, the limits are operator-specific, which allows them to be circumvented by opening accounts with multiple operators.

A more effective solution would be a personal deposit limit that applies across all gambling operators for the same individual.

Legislators are aware that the new gambling system has significant structural flaws.

In Finland’s reference countries such as the Netherlands, lower deposit limits have also been set for young adults, which, according to THL, would be a welcome addition to protecting young people.

"It could be wise to tier lower deposit limits and relate them to the average income of the age group. However, it is important to remember that even small monthly losses accumulate into significant losses over a year. In the end, the house always wins and covers both marketing and staff salaries," says Tassopoulos-Järvinen.