Finland is nearing a significant change in its gambling sector, aiming to transition from a monopoly-driven system to a competitive licensing model. The country’s ministerial economic policy committee outlined a clear path forward on November 1, setting a January 1, 2026, target date for the open market launch, in line with the government’s reform objectives. Under this new system, horse race betting will move to the competitive license market, ending its monopoly designation and introducing regulatory changes designed to address gambling-related harms.
Previously under a monopoly operated by Veikkaus Oy, horse race betting will now fall under the competitive market’s purview. This shift has been a significant point of discussion among lawmakers and industry experts, who see it as a step toward increased market efficiency. Funding for horse racing, breeding, and related industry support will come directly from the state budget rather than from monopoly profits. According to the Ministry of the Interior, allocations will include resources for breeding, advisory services, anti-doping control, and other essential development programs led by Hippos ry, the organization responsible for overseeing Finland’s horse industry.
The restructured law will allow licensed operators to participate in specific gambling markets, including electronic betting, casino games, and bingo. Veikkaus Oy will retain control over lottery games, physical casinos, and certain in-person betting and slot machines. The legislative changes align with Finland’s goals of mitigating gambling-related problems and ensuring a high degree of channelization—keeping Finnish gamblers within regulated platforms to promote responsible gaming practices.
The revised gambling proposal was formally sent to the European Commission (EC) on November 1 for a three-month review. During this period, the EC and EU member states will assess the draft’s alignment with European laws, particularly regarding the free movement of services.
Finnish legal experts and industry observers generally view the updated 357-page draft law favorably, calling it more “business-friendly” compared to the original version released in July. The current draft eases certain marketing restrictions, including permissions for offline brand promotions and a relaxation of the bonus ban, allowing some bonuses for existing customers. Finnish gaming law expert Antti Koivula commented on these adjustments, noting that they make the law more appealing for businesses aiming to establish a presence in Finland’s soon-to-be competitive market.
However, Koivula also pointed out some added costs. “The GGR-based annual supervision fee has been notably increased,” he explained, which may impose additional financial burdens, adding more than 2% in expenses at particular gross gaming revenue levels. Despite the unchanged GGR tax rate of 22%, this added fee could affect operator profitability.
The timeline for opening the competitive market has also shifted slightly forward, with operators potentially entering the market by July 2026 if licensing processes are completed on schedule.
The Finnish regulatory framework takes inspiration from the gambling models used in neighboring Nordic countries, particularly Denmark and Sweden. Morten Ronde, a partner at law firm Nordic Gambling, noted that this approach would feel familiar to operators already active in those markets, making it easier for companies to adapt. He also lauded the moderate bonus policy and tax rate, though he acknowledged that “moderate” is yet to be precisely defined.
Ronde expressed optimism about Finland’s path, observing, “The draft law shows significant improvements, hinting at the potential for a practical and well-regulated gambling market.”
One area of debate is the regulation of influencer and affiliate marketing. Finnish iGaming consultant Pasi Koskela highlighted limitations on Veikkaus Oy, which is prohibited from using influencers to promote its services, even without direct compensation. The proposal states that while public figures may appear in official Veikkaus advertisements, they are restricted from sharing related content on personal channels. Koskela expressed concerns over the regulation’s effectiveness, suggesting it may inadvertently drive users toward unregulated sites.
“People also won’t suddenly stop googling ‘online casinos’ when the new law takes effect, which means the traffic these affiliates have been directing to somewhat reputable and regulated casinos will now go elsewhere,” Koskela noted. He cautioned that without oversight, such traffic could flow to unregulated sites that might not enforce fair gaming practices or consumer protections.
The Finnish government expects to submit the finalized version of the proposal to parliament in early 2025. Discussions are anticipated in the spring session, with plans to approve the law by midsummer, potentially enabling the licensing model to start by early 2026.
Finland’s Ministry of the Interior emphasized the importance of alignment with EU legislation, stating, “The purpose of the procedure is to get possible feedback from the Commission and other EU member states on the proposal’s consistency with EU legislation and the principles of free movement.” While the government aims for a balanced and practical system, some regulatory details remain unresolved, with certain components expected to be clarified in secondary legislation.
By ushering in these changes, Finland is set to join a broader trend in Europe, where countries are progressively moving from monopolistic to competitive gambling frameworks. While industry feedback has been generally positive, the actual implementation will reveal how well Finland’s system adapts to the competitive market.
Source:
''The reform of the gambling system is progressing - including toto games in the competitive license market'', valtioneuvosto.fi, November 01, 2024.