As Finland prepares to change its gambling regulations, a key issue emerges: Will the new legislation ban affiliate marketing?
The Finnish government is expected to publish a revised version of the gambling bill by the end of October, aimed at transitioning from a state monopoly to a multi-license system by January 2027. The bill will be submitted for EU review, expected to open the market to licensed operators and address a range of regulatory issues.
While the gambling industry eagerly anticipates these changes, certain parts of the initial draft have raised concerns. One of the most controversial issues is the potential prohibition of affiliate marketing.
According to Vixio, some experts point out that the current version of the bill is not clear enough. The term "third-party advertisers" could refer to affiliate companies as well as traditional print media, hence calls for further clarification.
Channelization Issues
Industry insiders worry that such a ban might inadvertently push players away from licensed gambling sites, thereby benefiting the black market.
Jari Vahanen, head of The Finnish Gambling Consultants and former executive at Veikkaus, sees problems with the proposed affiliate ban. He believes excluding affiliates from the regulatory framework could lead to an increase in advertising by unregulated operators, thus undermining the goals of the bill.
Under the new law, Veikkaus, the state-owned monopoly, will lose much of its dominant position, and its market share is also declining as the grey market expands. According to Vahanen's estimates, Veikkaus's online market share will drop to 50.9% by 2024, with further declines expected.
Response from EGBA
The European Gaming and Betting Association (EGBA) has also expressed strong concerns about the proposed marketing restrictions. EGBA Secretary General Maarten Haijer has called for amendments, warning that "the proposed bans on affiliate marketing and social media advertising could be counterproductive." He believes these channels play a crucial role in directing consumers to regulated platforms, and excluding them could lead players to unlicensed sites.
EGBA proposes including affiliates within the regulatory framework and allowing social media advertising under clear guidelines. "Both are valuable tools for directing players to licensed operators. By implementing clear guidelines, such as mandatory safe gambling information, Finland can leverage the power of these marketing channels while maintaining high standards of consumer protection," the association states.
Haijer also criticized the complete ban on bonuses, arguing that it would make newly licensed operators less competitive compared to unregulated sites. He suggests a more nuanced approach, allowing bonuses under certain conditions and establishing responsible usage guidelines to better protect consumers and ensure market competitiveness.
Next Steps
As Finnish gambling legislation nears final drafting, the debate over affiliate marketing remains a key issue. The industry's response to the bill and potential amendments will be closely watched, as they will affect the future dynamics of Finland's gambling market and its alignment with broader EU regulatory trends.
