The gambling business in Finland is set to elevate as the local government has introduced a bill to Parliament to abolish the existing gaming monopoly and open the market to private enterprises. If signed, the draft law will power the most significant reforms of the country’s industry in decades.
More Details About the Initiative
For many years, the national entertainment segment was controlled by the state-owned operator Veikkaus. Nevertheless, the company has recently experienced a record decline in revenue and a massive outflow of users to foreign gambling websites.
iGaming licensing in Finland will be based on key principles that have already proven successful in the Swedish amusement sector. The final changes presented to Parliament are expected to take effect in 2027.
The reform will be conducted in several stages. The country’s Ministry of the Interior requires that the restructuring begin with issuing permits to B2C studios, enabling operators to offer various types of remote casino and betting products legally. Certification of software providers and other B2B segment representatives will not begin until 2027.
Despite the opening of the market to private businesses, Veikkaus will continue to serve the population. It will retain exclusive rights to:
- lotteries and scratch cards;
- land-based casinos and physical slot machines;
- any gambling offerings within stationary gaming establishments.
The previously in charge National Police Board will resign its regulatory responsibilities. It is set to be replaced by the Licensing and Supervisory Authority. The new body will oversee all niche aspects, from certification to compliance monitoring and enforcement of advertising restrictions.
The primary objective of the government initiative is to address issues that the monopoly structure cannot resolve. Finland’s Competition and Consumer Authority claims that offshore operators account for approximately 50% of total digital gambling revenue.
Gaming Experience: Reform’s Impact
According to the proposed bill, operators will be required to strictly verify the identities of their customers and implement permanent age restrictions (only 18 years and above). Another mandatory rule is the availability of specialised transaction monitoring tools.
The government is currently developing a national self-exclusion system, similar to those already successfully deployed in Swedish and Danish jurisdictions. The platform’s functionality should allow users to block access to a range of solutions independently.
The options for avoidance are:
- all services with a risk of gambling losses;
- particular content categories;
- specific operators.
Certain provisions of the document address the promotion field. Key requirements:
- Advertising is not completely prohibited, but it must be moderate in terms of volume, reach, and frequency.
- Operators have the right to leverage their social media channels and accounts.
- Marketing content must include age restrictions and information about the risk of ludomania, as well as contacts for help and support services.
The initiators of the project aim to achieve an ideal balance between market freedom and increased protection for players.
Expectations for the Updated Regulation
Even with a monopoly, the total turnover of the Finnish gaming vertical exceeds €2 billion per year, with more than half of this amount coming from web betting. Amid the upcoming legislative changes, the state-owned Veikkaus has begun preparations for restructuring and expansion. To strengthen its position, the company has partnered with OpenBet and plans to create a new sportsbook platform.
This move underscores the monopolist’s commitment to maintaining competitiveness in the upcoming market opening. Competition potential rises as several leading international operators, including Kindred Group and Betsson AB, have already announced their readiness to enter the Finnish segment.
Possible Challenges in the Industry
Despite the reform’s economic prospects and new revenue sources for the country, niche experts are cautious about the consequences. According to a recent public health study, nearly 4% of adults in Finland exhibit signs of moderate-risk or problematic behaviours, affecting about 733,000 relatives and friends of theirs.
Local analysts fear that regulated access to a variety of gambling products could exacerbate existing problems. Nevertheless, proponents of the initiative consider such forecasts overly pessimistic, emphasising that certified portals, on the contrary, boast better user protection and reduced risks.
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