The online gambling monopoly in Finland is soon to be a thing of the past, as the state moves towards market liberalisation. In July 2024, Finland began its regulatory shift by introducing the first draft of the new Finnish Gambling Act. While this draft is not yet final and is expected to undergo changes based on feedback from the consultation period, it already provides a thorough overview of what to anticipate. According to the proposed draft, private operators could enter the Finnish market as early as 2027.

Finland introducing B2C and B2B licences for gambling

Previously, the Finnish market has offered only a few locally-regulated business opportunities to gambling operators. The new gambling regime proposes to end the state monopoly and establish a licensing system for online gambling and its supervision in Finland. This system would allow gambling operators to apply for licences to operate in Finland, covering both B2C and B2B licenses. The licences would be granted for a maximum of five years at a time. 

Nevertheless, the licensing system does not mean a definitive goodbye to the monopoly operator. Under the new proposed regime, the current state-owned monopoly operator, Veikkaus (its to-be established affiliate), will retain some exclusivity over certain products, such as lotteries, scratch cards, slot machines, and on-site casino games. While Veikkaus will still retain its exclusive right to operate on-site gambling, private operators will now have the option of seeking a B2C licence for specific types of betting, online casino games, online slot machines, and online bingo.

The Finnish licensing will also cover B2B licences for software used in providing gambling services. For instance, operators providing betting software, random number generators, software to display gambling results, live stream solutions, gambling monitoring software, software used for transfers to game accounts etc. will now require B2B licences to have their software used for gambling in Finland. According to the proposed draft act, only licensed software can be used in the authorised provision of gambling services in Finland, meaning that B2C operators must use only licensed software.

According to the proposed draft, the licencing system will take effect in two stages: B2C licences will be applicable starting in 2026, with licensed gambling activities commencing in 2027.  B2B licences can be applied for a year later in 2027, and then gambling activities will commence in 2028.

Cooling-off period – hands off the gambling market?

Despite previous political discussions and preliminary reports suggesting a potential cooling-off period, the proposed draft does not include any reference to such a period. Additionally, the implementation timeline for the new system makes it difficult to include a cooling-off phase: B2C applications can be submitted from early 2026 and licensed gambling services can begin in early 2027 (Veikkaus will retain its monopoly for most of this period until the end of 2026).

However, regardless of the absence of a cooling-off period, past infringements of gambling regulations could lead to the rejection of license applications.

Significant updates in the upcoming regime

Formation of a gambling regulatory authority 

Under the new regime, the National Police Board will no longer be responsible for gambling supervision. Instead, a Licensing and Supervisory Authority will be established to oversee compliance with gambling regulations, grant licenses, and issue fines. The new authority will start its operations in 2027.

If gambling services are operated or marketed without a licence, the supervisory authority has the power to prohibit these actions and impose measures to restrict such activities. The new legislation, like the current one, includes restrictions on the unauthorised provision and marketing of gambling services in Finland.

Introducing a new blocking measure

While payment blocks were implemented in 2023, the new legislation introduces additional measure to restrict the prohibited marketing of gambling services, namely “website blocking”. The proposed draft specifically refers to website blocks such as IP or DNS blocks. According to the draft, network operators are now required to prohibit access to websites of operators that are not licensed to operate in Finland. In the event of a violation of the gambling act, network operators must, upon request from the supervisory authority, block access to the offending gambling operator’s website.

Restrictions on services and marketing 

The proposed draft introduces a national self-exclusion system, similar to those in Sweden and Denmark. According to the draft, individuals can set bans on all gambling activities, or specifically by operator or by certain games.

Gambling marketing is not proposed to be banned altogether, but it will face significant restrictions. Licence holders would be permitted to market gambling only on their own, without using third parties, effectively making the use of gambling affiliates unfeasible. Additionally, gambling marketing that carries a high risk of harm – namely betting – would be subject to stricter regulations than the marketing of exclusive gambling services, and they could only be marketed in the immediate vicinity of where these games are played and at agent points where they are available. Interactive marketing, including two-way conversations on social media and reacting to user comments, including through emojis, is also prohibited.

The proposed marketing restrictions prioritise the protection of minors. According to the first draft, no gambling marketing of any kind may be directed at minors through any channel, or at events or in content intended to be viewed by them. These restrictions extend to sponsorship: Sponsorship agreements must exclude individuals under 18 and events or content aimed at this age group. Licence holders must ensure their logos and product names do not appear on items or services for minors. Sponsorships also cannot involve content creators for minors or target products designed for those under 18.

Under the new regime, bonuses – including no-deposit bonuses, campaign bonuses, free spins, and free game money – would not be permitted.

Fees and tax rate – cost of operating in Finland

Operating in Finland will incur several costs, including licensing, supervision, and taxation fees. License holders will be required to pay an annual supervision fee, which is scaled according to the game margin. This means that the fee amount adjusts based on the profitability of the games offered. Additionally, a license fee will be charged to cover the actual expenses associated with the licensing process. Licensed operators will also face a tax of 22% on their Gross Gaming Revenue (GGR). These financial obligations are designed to ensure compliance and contribute to the regulatory framework governing gambling activities in Finland.

Participating in the consultation period – your opportunity to shape the new legislation

The Ministry of the Interior has initiated a public consultation process for the new legislative proposal, and invites both individuals and organisations to contribute their feedback. The consultation period is open until 18 August 2024, offering a valuable opportunity to shape the final draft of the legislation. Participation at this stage is crucial for influencing the development of the new law.

To submit your opinions, please visit the government-operated service Lausuntopalvelu.fi (authentication required), where the proposed draft act and request for comments are available. Alternatively, you can send your feedback directly to the Registry of the Ministry of the Interior via email at registry.sm@gov.fi. Please be aware that all submissions will be made public. Our team in Finland is available to assist stakeholders with drafting and submitting their opinions. 

After the consultation period concludes, the Ministry will review all submitted feedback and continue refining the proposal. Some of the feedback may be incorporated into the draft. According to the legislative project’s original schedule, the final gambling act is expected to be submitted to Parliament in the spring of 2025. While significant changes to the core aspects of the new gambling regime are not anticipated, this consultation offers a valuable opportunity for all interested parties to engage in the legislative process.