On November 1, 2024, Finland officially notified the European Commission of its draft Gambling Act, marking a pivotal move towards the liberalization of its gambling sector. The proposal introduces a licensing regime for pari-mutuel horse racing, online betting, and online casino games. Licenses will be valid for five years. Gambling software providers and suppliers (B2B providers) will also require a five-year license and be permitted to work only with licensed operators.
Meanwhile, lottery-style games, land-based slot machines, and casinos will remain under the exclusive control of a state-owned company Veikkaus.
The Draft Law is currently under parliamentary review, having recently been submitted for final assessment by sub-committees. According to the government’s timeline, license applications will open in early 2026, and licensed gambling activities are expected to commence at the beginning of 2027. A newly established regulator will assume responsibility for licensing and market oversight starting that year. B2B providers will be required to obtain licenses by 2028.
Ivan Kurochkin, Partner and Head of the Consulting Department, 4H Agency, shared his insights on the potential impact of liberalizing the national gambling sector with SBC Eurasia.
From Monopoly to a Modern Regulatory Model
For decades, Finland maintained a monopoly-based model through its state-owned operator, Veikkaus, covering all gambling verticals, both online and land-based. The current reform proposes a significant departure from this framework by transitioning to a more open, competitive, and transparent system.
Key Provisions of the Draft Law
- Licensing
- Licenses will be available for sports betting (including horse racing), online betting, and online casinos (including slots).
- Veikkaus will retain exclusive rights over lottery games, scratchcards, land-based slots, and casino games.
- Notably, the horse racing industry will receive direct funding through the state budget rather than relying on Veikkaus profits.
- Taxation
- A flat tax rate of 22% on gross gambling revenue (GGR) is proposed for all licensed verticals.
- Restrictions
- Website blocking will be enforced against unlicensed operators.
- Affiliate marketing will be broadly prohibited, and revenue-sharing models will not be allowed. The use of influencers and targeting minors or vulnerable groups will also be banned.
- Sponsorship by gambling operators will be restricted.
- Only retention bonuses will be allowed under strict conditions to prevent excessive gambling.
Challenges and External Reactions
While the industry has widely welcomed the reform, it has not been without hurdles. The European Commission’s standstill period, originally scheduled to end on February 4, 2025, was extended by one month following a detailed opinion from a key offshore jurisdiction – Malta. Malta’s concerns reflect the potential impact of Finland’s licensing regime on its gambling sector, which has long served Finnish players via EU-based licenses, notably from the Malta Gaming Authority (MGA).
Such a shift could influence workforce dynamics, since Finnish professionals who have been working for Malta-based companies might consider relocating as new opportunities emerge within Finland’s regulated market.
Though this is not the first instance of Malta responding assertively to gambling reforms in other EU countries. A similar reaction was observed in late 2024 when Malta raised concerns over Italy’s proposed regulatory changes affecting B2B providers.
Domestically, concerns have been raised by various stakeholders:
- The Finnish Trade Association for Online Gambling cautioned that prohibiting affiliate marketing and limiting bonuses could drive players back to unregulated markets.
- The Finnish Center for Integrity in Sports warned of increased risks of match-fixing following the introduction of licensed online betting.
- The Finnish Council of Regulatory Impact Analysis identified gaps in the Draft Law, including limited exploration of alternatives to mitigate gambling harm, a lack of social and gender impact assessments, and insufficient detail on the implications for welfare and treatment services.
Despite these concerns, the Draft Law is expected to proceed largely in its current form.
A Promising Future for Finland’s Gambling Market
Finland’s decision to shift from a state monopoly to a licensed gambling model marks a historic turning point. While challenges and critiques are natural during such a transformation, the move reflects a progressive and balanced approach that aligns with international best practices.
The reform paves the way for a more competitive and transparent market, and positions Finland to become an attractive jurisdiction for reputable operators. The experiences of neighboring Scandinavian countries, which are globally recognized for their high levels of channelization rates and successful regulatory frameworks, provide a valuable blueprint.
With this bold step, Finland is not just updating its legislation – it is opening the door to economic growth, consumer protection, and regulatory innovation in the gambling sector.
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