The Finnish social insurance institution Kela has announced the latest updates regarding gambling winnings and social assistance.
According to the new guidelines, Kela will consider net profits when determining the amount of social assistance, rather than just gambling winnings as was the case with previous guidelines.
The overall idea behind the updated guidelines is to ensure that those receiving social assistance do not fall into difficult financial situations; considering gambling winnings as income could reduce the amount of social assistance one receives.
With these new guidelines, Kela will look at winnings over a longer period rather than a one-time transaction.
The government agency stated that about 5% of social assistance recipients use their benefits for gambling, and emphasized that its goal is to prevent financial distress among recipients and to help prevent any harm related to gambling issues.
Kela's welfare manager Marja-Leena Valkonen said: "Kela does not tell clients how to use their social assistance, but we are naturally concerned about whether low-income individuals might spend their money on gambling.
"Social assistance is a last resort financial aid, used for daily expenses such as rent and food. We aim to help those who may find themselves in financial trouble due to gambling."
In 2024, Finland's gambling industry will undergo significant changes, with the Ministry of the Interior having submitted a draft of the new gambling law in July this year.
The legislation aims to end the monopoly of Veikkaus Oy on gambling, online slots, and casino games, as deeply explored in an earlier issue of Gambling Insider this year.
