Finland Says Online Casinos Leading Cause of Financial Problems

Banking officials and gaming opponents in Finland are claiming that online casino gambling is the leading cause of financial stress in the country.

Finnish officials say Internet gambling may have moved past unemployment as the leading cause of economic stress for the country's residents. They point to the nation's banking industry, which says gambling is more involved in foreclosures than not finding work.

"We are seeing the gambling phenomenon reflected in people not paying their home loan instalments, or paying them late. In contrast, unemployment does not at all seem to be causing such a phenomenon," said Tarja Svartstrom, an economist at Nordea Bank.

The Finnish government has been on an extensive media campaign against online gambling, as it tries to reign in semi-autonomous districts that feature private online casino operators, while the state monopoly loses business.

Svartstrom admits that the issue of which came first, problem gambling or financial stress, is like the chicken and the egg. She noted, "It can be that when it looks like someone is getting into financial difficulties, he or she tries to manage loans by gambling."

Other officials have surmised the problem may be a more general availability of credit online, which would include Internet casinos. Residents are taking out loans or borrowing against credit cards in the hopes of winning at a faster rate than interest accumulates.