Finland plans to open its gambling market to commercial operators in 2027, end Veikkaus monopoly and introduce new regulations
Current state of gambling in Finland
The Finnish gambling market has experienced significant growth in recent years and the market size continues to expand. According to the latest data, the total revenue of the Finnish gambling market has reached billions of euros, showing strong market demand and spending power.
Currently, the main players in the Finnish gambling market include the state-owned monopoly Veikkaus and a number of international online gambling operators. Veikkaus dominates the market, controlling a majority of the market share.
Although Veikkaus holds the majority of the market share, with the rise of online gambling, international operators are gradually entering the Finnish market. These operators attract a large number of Finnish consumers by offering a diverse range of gambling products and services.
The Finnish government plans to introduce a new gaming licensing system in 2027, which will further change the market landscape. The new licensing system will allow more commercial operators to legally enter the market, which is expected to increase market competition and promote the healthy development of the market.
With the opening of the market and the reform of regulations, the transparency and fairness of the Finnish gambling market will be significantly improved. This will not only help combat illegal gambling activities but will also provide consumers with a safer and more secure gambling environment.
Implementation timeline
Finland’s interior ministry plans to open the gambling market to commercial operators in early 2027, ending Veikkaus’ monopoly and introducing a new regulatory system. The basis for this major change is a draft gambling bill submitted to the Finnish parliament. While the government initially planned to end Veikkaus' monopoly in 2026, the actual market opening will be delayed until 2027. Operators can apply for licenses starting in 2026.
The specific implementation schedule is as follows:
- August 18, 2024:Launch a government-run consultation process to seek feedback from the wider department, including the Secretary of State.
- Q1 2025:Submit a draft government proposal to Parliament, usually in February.
- Q1 2026:Operators can begin applying for licenses. Q4 2026: Veikkaus' online gambling monopoly ends, with the company split into two entities, one responsible for lotteries and land-based games, and another to compete in the online market.
- Early 2027:Suppliers can apply for a software license to offer online games.
- 2028:Operators can only offer games from local authorized software providers.
Targets and regulatory measures
The new Act and subsequent legislation aims to "prevent and reduce gambling disadvantage and improve the direction of demand into a legally regulated gambling system". Both operators and supplier licensees will be required to pay an annual regulatory fee to the new regulator, but the specific rate has yet to be determined.
New regulators and market surveillance
The Finnish Ministry of Finance will set up a new gambling regulator to replace the current regulator headed by the National Police Board. The new agency will have the power to impose administrative sanctions on illegal activities, restrict black market products by blocking online and payment traffic, and implement a centralized self-exclusion register for players. In addition, the regulator will oversee marketing and advertising restrictions to ensure that these restrictions are proportionate and necessary to direct gambling demand to licensed activities. Advertisements must not target minors or vulnerable groups, and marketing high-risk gambling games abroad is prohibited.
The future and market position of Veikkaus
The new legislation will end Veikkaus' online betting and gaming monopoly, giving it a market position similar to that of Swedish former monopoly operator Svenska Spel. The government may consider selling part of Veikkaus to increase national shareholder value. However, Veikkaus will retain exclusive rights to lotteries, TOTO games, physical slot machines and scratch cards and pay an annual fee for these rights.
Industry consultation and feedback
The government has set up a working group and is seeking feedback from industry and government departments on its proposals, including taxation, licensing procedures, marketing and Veikkaus' place in the market. The comment window will close on August 18, 2024.
in conclusion
Finland plans to open its gambling market in 2027, marking a major shift in its gambling landscape. The introduction of new regulations and the end of the Veikkaus monopoly will result in a more competitive and regulatory environment for operators and players.
