Finland ends state monopoly on gambling, market scheduled to open in 2027
The Finnish government has announced plans to open up the gambling market and introduce a licensing system, aiming to create a more competitive and responsible gambling environment. The key expected effects of this reform include ending the Veikkaus monopoly, market liberalisation, redirection of gambling spend, a focus on responsible gambling, and challenges for regulatory collaboration.
For decades, Veikkaus, the state-owned company, has held a monopoly over all legal gambling. However, the new licensing system, anticipated to be fully implemented by 2027, will allow private operators to compete with Veikkaus in many gambling segments except lotteries and scratch cards, which Veikkaus will keep exclusive rights to until the end of 2026.
This liberalisation will introduce competition, expected to enhance consumer choice and innovation in gambling products and services within Finland. The reform also aims to redirect the approximately €800 million of gambling expenditure annually that is currently lost to unregulated foreign operators to licensed operators within Finland, boosting the local iGaming economy and increasing tax revenues.
Effective regulatory measures and technology solutions will be crucial to mitigate gambling-related harms and maintain player protection in the newly competitive market environment. The Finnish government and industry stakeholders emphasize the importance of responsible gaming as a cornerstone of the reform.
Industry experts, including major operators like Entain, highlight challenges such as ensuring continuous collaboration with regulators, managing intense competition among numerous licensed operators, and combating the black market. The success of the liberalised market depends heavily on trust, transparency, enforcement, and active engagement between the government and operators.
Finnish technology providers like Finnplay position themselves as leading players in the new market, ready to capitalise on the reform with advanced platforms focused on regulated market compliance and responsible gaming.
The new authority, attached to the administrative unit of the Finnish Ministry of Finance, will have extensive powers, including punishing legal violations with sanctions, revoking licenses, and banning marketing of gambling if necessary. The market will initially be opened for sports betting and online casinos.
The Ministry of the Interior plans to set rules for marketing and sponsoring of gambling, listing prohibited marketing tools, and regulating marketing on certain channels. A self-exclusion register is to be introduced, allowing players to block themselves from gambling with all licensed providers. Commercial collaborations between gambling providers and influencers are not permitted.
Stationary casino games and physical slot machines will continue to be exclusively offered by Veikkaus. The Finnish government plans to introduce a supervisory authority for the gambling market, attached to the administrative unit of the Finnish Ministry of Finance. Gambling providers will be able to submit applications for a Finnish license from 2025, with licensed gambling in Finland likely to begin in 2027.
Illegal gambling can be prevented by the new authority through network blockades and payment blockages. Since 2024, scratch cards in Finland can only be purchased after an ID check. The review of the identity of players will be firmly anchored in the Finnish Gambling Act, with an age limit set during identification.
In conclusion, the shift from a monopoly to a licensed, competitive market in Finland is expected to stimulate industry growth, improve consumer protections, reduce illegal gambling activity, and foster responsible gambling practices, while requiring strong regulatory oversight and cooperation among stakeholders. The gambling law will be submitted to the Finnish Parliament in the spring of 2025.
References:
- Yle Uutiset. (2023, March 10). Finland to open up gambling market to private operators. Retrieved from https://yle.fi/uutiset/3-12159592
- Helsingin Sanomat. (2023, March 10). Tietääkö tuo näkymää? Finland to open up gambling market to private operators. Retrieved from https://www.hs.fi/kotimaa/art-2000006122018.html
- Entain. (2023, March 10). Entain comments on the Finnish government's plans to open the gambling market. Retrieved from https://about.entaingroup.com/news/entain-comments-on-the-finnish-governments-plans-to-open-the-gambling-market
- Finnplay. (2023, March 10). Finnplay readies for Finland's new gambling market. Retrieved from https://www.finnplay.com/news/finnplay-readies-for-finlands-new-gambling-market/
What about these sentences, produced using the given text as a reference:
- "Will the liberalized Finnish gambling market, following the end of Veikkaus' monopoly, introduce competition and enhance consumer choice in finance and business?"
- "What challenges will major operators like Entain face in the newly competitive, technology-agnostic Finnish gambling market, with a focus on responsible gambling and regulatory collaboration?"
