Big regulation changes ahead for Finnish gambling market

For years, a gambling monopoly has dominated Finland, but its reign is drawing to a close. The new government has documented reforms to the Lottery Act, transitioning Finland to a licensing system by 2026 at the latest. This system will regulate both digital gambling and the advertising activities of gambling companies.

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The licensing framework will require all foreign online casinos wishing to service Finnish players to obtain a Finnish gambling license. This brings them onto an even playing field with Veikkaus, the current monopoly holder in the country.

However, this change won’t affect Veikkaus' physical gaming machines; the company will retain exclusive rights to lottery games and physical machines.

What are the benefits of a gambling license for Finland?

Gambling licenses offer significant advantages to both the Finnish state and Veikkaus. One of the primary benefits for the Finnish government is financial; the national gambling license will redirect substantial revenues currently flowing overseas back into the country.

Approximately 500 million euros of Finnish gambling money currently goes abroad, contributing to the economies of popular gambling jurisdictions like Malta. The licensing system will funnel hundreds of millions of euros back into Finnish coffers, as acquiring and maintaining a license is not free.

From Veikkaus’ perspective, leveling the playing field with international online casinos makes the competition fairer. The Finnish gambling authority distributing the licenses can impose the same rules and restrictions on licensed online casinos as on Veikkaus. Without a licensing system, the Finnish government has had no control over the offerings and regulation of foreign online casinos, leading to more lenient rules and enticing casino bonuses.

Licenses also facilitate the prevention of gambling-related harm. Until now, the Finnish government has only been involved in Veikkaus’ efforts to promote responsible gambling. This has resulted in Finnish players developing gambling problems on foreign online casinos, with the responsibility for treatment falling on the Finnish state.

With the licensing system, the Finnish gambling authority can dictate how licensed casinos must promote responsibility, offering better prevention of gambling-related harm.

For players, the licensing offers benefits, particularly for those who are wary of playing on platforms not monitored by the Finnish government. These players will now have more options, still under the watchful eye of Finnish authorities.

How do online casinos benefit from the Finnish gambling license?

The Finnish gambling license is also naturally beneficial for foreign online casinos - otherwise, none would seek to obtain it. While Finns can already legally play on foreign online casinos, these platforms have been unable to market within Finland. This will change with the licensing system.

Foreign online casinos will stand equal with Veikkaus, opening up market opportunities. With a license, online casinos can advertise their services and offerings in Finland, including on television, social media channels, radio, or billboards, enhancing their visibility.

One positive aspect is that foreign online casinos will be able to collaborate with Finnish athletes and sports clubs through sponsorship agreements, significantly boosting their visibility while providing larger resources for Finnish sports. This situation creates a win-win scenario.

Are there downsides to the licensing system?

The licensing system also introduces some disadvantages, depending on one's perspective. Every online casino aiming to offer games to Finnish players will have to pay a substantial fee for the license and its maintenance, which naturally translates to additional costs for the casino. Moreover, these casinos will be subject to stricter regulation, which might deter some players.

From the players’ perspective, tighter control also means somewhat limited gaming options. On the one hand, closer monitoring is beneficial, but on the other, it’s likely that there won't be as many diverse bonuses available. For example, VIP bonuses may entirely disappear from the market, as happened in Sweden with the introduction of their licensing system.

The licensing system is also expected to lead to a decline in crypto casinos since fewer casinos operating with a license from jurisdictions like Curacao will be willing to acquire the expensive Finnish gambling license. However, this means that only the highest quality online casinos will remain available to Finns, eliminating all remaining so-called pirate casinos.

The Implications for Players

The forthcoming Finnish gambling license will offer players an enhanced level of protection and security during their online gaming experiences. This increased safety net is designed not only to safeguard players from potential harm but also to instill a deeper level of trust in the platforms provided by licensed operators.

Previously skeptical players, who perhaps only felt secure using state-sanctioned platforms, will now find themselves presented with a broader array of gaming options, all under the watchful and reliable gaze of the Finnish regulatory bodies.

How Do Finns Feel About the Gambling Regulatory Changes? The impending changes to Finland’s gambling regulatory framework have been met with a generally positive response from the public. Many Finnish citizens view these changes as a proactive and necessary step towards ensuring greater player protection and promoting responsible gambling practices.

Nonetheless, there is a recognized need for extensive public education campaigns to inform and enlighten the player base regarding the details and implications of the new regulations, thereby ensuring that players can navigate the transformed landscape with confidence and ease.

International Comparison: How Do Finland’s Regulatory Changes Measure Up?

When examining Finland’s proposed regulatory changes within a global context, it is prudent to draw comparisons with similar systems successfully implemented in countries like Sweden, Denmark, and the United Kingdom. These nations have intricately developed and instituted licensing mechanisms that work tirelessly to ensure player protection while simultaneously generating substantial revenue streams for governmental bodies.

Through careful analysis and consideration of these international models, Finland can adeptly navigate the transition, avoiding potential pitfalls and steering towards a successful implementation that mirrors the accomplishments seen abroad.

In the wake of these significant regulatory changes, the Finnish gambling landscape is set to undergo a dynamic transformation. Observers predict a spike in competitive activity as domestic and international operators alike scramble to secure their share of the market.

The market is also likely to see the emergence of specialized operators, each focusing on distinctive gaming sectors, thereby providing Finnish players with an extensive and varied selection of gaming options.

Response from the Industry

As Finland’s regulatory environment evolves, international online casinos have been actively preparing and aligning themselves for entry into this attractive market. Intriguingly, many of these international gaming companies have previously operated in the Finnish market but have done so under licenses obtained from other jurisdictions, such as Malta, Curacao, or Estonia.

This means that the Finnish gambling market is not entirely new or unfamiliar to these operators; rather, it is a well-acquainted terrain where they have navigated, albeit under different regulatory circumstances.

This familiarity with the Finnish market dynamics and consumer behaviors provides these operators with valuable insights and understanding, forming a solid foundation for their impending full-fledged entry under the new regulatory framework. The seasoned operators have been vocal and enthusiastic supporters of Finland’s transition to an open licensing system. They perceive this shift as a positive and welcome development that promises not only to level the playing field but also to foster a more transparent, competitive, and vibrant gambling industry in Finland.

Moreover, there’s growing anticipation and excitement over potential partnerships and collaborations within the Finnish market. The prospect of forming alliances with Finnish sports entities, clubs, and prominent athletes is particularly enticing for these international operators. Such partnerships are not only envisioned as powerful marketing and branding initiatives but are also seen as avenues for contributing positively to the Finnish sports community.

Through sponsorships and other collaborative endeavors, these international casinos aim to play a constructive role in supporting and promoting sports in Finland, creating a synergy that benefits both the gaming and sports sectors.

Impact on Problem Gambling and Addiction Prevention

One of the undeniable benefits of the incoming licensing system is its expected positive impact on addressing and preventing problem gambling and addiction. The new system allows the Finnish regulatory body to exercise control over all market operators, enforcing stringent responsible gambling measures across the board.

Such sweeping preventative measures are crucial for fostering a healthy and sustainable gaming culture within the country, effectively minimizing the risks and societal impacts associated with gambling addiction.