Finland Gambling Act to End Veikkaus Monopoly

Finland’s Ministry of the Interior has announced the commencement of a consultation period as part of a proposed reform of the country’s current legal gambling industry which sees government-owned Veikkaus Oy hold a monopoly for betting and online casino gaming.

Proposed legislation will see the industry opened to private companies that wish to apply for licensing to operate in the Finnish market. The changes to the gambling landscape have been proposed as a result of the influx of illegal gambling websites that operate without licensing in the local market.

The hope is that if the industry is opened to licensing, private entities will apply for licensing. According to the Ministry, opening the market to competition would lead to more legal options for locals and therefore protect customers through regulation.

Licensing

The legislation suggests exclusive and individual licensing for:

• Lotteries – Veikkaus
• Pools
• Totalisator betting
• Physical slot & casino games – Veikkaus
• Online casino games

Despite lotteries and physical slots machines and casino games being listed, the Ministry has stated that Veikkaus would retain an effective monopoly on these.

There would also be a specific gaming software license required by any software provider supplying games to locally licensed businesses.

All licenses will be subject to an annual supervision fee while taxes would be determined by the government on a yearly basis.

Marketing and KYC

The new gambling act will also include rules that would see gambling operators require that all customer verify their identity and their place of residence. There will also be provision for age limits for each specific type of game although no further details were given on any difference there may be in those limits.

Customers must also be given the option to self-exclude from gambling activities. The government will also introduce a centralized register of gambling bans that each license holder must use to place limits on accounts.

The legislation also has provisions for marketing and sponsorship of gambling games. According to the announcement, licensed gambling operators would be allowed to advertise their business and games in various channels but the to promote gambling products or services. Veikkaus will also be banned from marketing any physical slot machines or casino games in any way whatsoever.

Regulation

At present, all gambling is currently supervised by the National Police Board. The new legislation proposes the Finnish Supervisory Agency which itself would fall under the supervision of the Ministry of Finance. The new agency would have the power to issue financial penalties, rescind licenses, and place prohibitions on license holders or block individual games.

The Agency could also impose financial penalties for unlawful activities. This would include unlicensed operators targeting the local Finnish market.

Timeline

The Ministry aims to submit the government proposal to Parliament in the spring session of 2025. If approved, the act would come into force beginning in 2026 with operator ready for a potential launch by 2027. It’s hoped that all aspects of the legislation would be fully implemented by 2028.

The current consultation period ends on 18 August 2024.

Based in London, Natasha is a former sports journalist with experience working for some of the biggest athletes & brands in the world of sports and iGaming.