Finland is now one step closer to launching a competitive gambling market. Earlier this week, the government submitted the draft proposal HE 16/2025 vp, which lays the groundwork for the new gambling system. The draft legislation introduces separate licences for B2B and B2C suppliers and confirms the division of state-run gambling operator Veikkaus into two separate legal entities, in compliance with EU competition laws.
Finland Prepares for Regulated Competitive Gambling Markets Ahead of 2027 Deadline: Quick Overview
- B2C operators must apply for a Gambling Game Licence (rahapelitoimilupa) to offer online betting games, including fixed-odds, pool and virtual, and online casino games, such as slots, table games, and bingo.
- B2B gambling providers must apply for a Game Software Licence (peliohjelmistotoimilupa) for manufacturing, providing, modifying or installing gambling equipment and software.
- To comply with the European Union’s (EU) competition laws, state-run betting operator Veikkaus will be divided into two separate legal entities. While one will operate lotteries, physical machines, and land-based casinos, the other will offer online casino gaming and sports betting.
Dual Licence Model to Streamline Gambling Regulations and Strengthen Enforcement
Finland’s transition from a state monopoly on gambling transactions to a competitive open market took a step forward this week. The government has submitted the legislative document HE 16/2025 vp, which lays the groundwork for the new gambling framework, to the Parliament. The law is expected to take effect on January 1, 2027, and will open the Finnish market to foreign gaming operators.
Finland is one of the last Nordic countries to legalise online gambling. Remote gambling is quite popular in the region, and players are actively engaged at online casinos in Finland. Neighbouring Norway still retains a state monopoly on gambling operations. However, increasing pressure from industry bodies, controversies surrounding state-run Norsk Rikstoto, and the growing popularity of online casinos in Norway could encourage the government to reconsider its stance.
The Finnish government has proposed establishing a two-tier licensing framework with clear distinctions for B2B and B2C gambling service providers.
- B2C operators hosting online casino games, including slots, bingo and table games, and online betting games, such as fixed-odds, virtual, and pool, will need a Gambling Game Licence (rahapelitoimilupa).
- B2B operators offering manufacturing, installation, or modification services of gambling equipment and software will require a Game Software Licence (peliohjelmistotoimilupa).
The application window for B2C licences will open in early 2026. They must be renewed every 5 years, and operators will have to pay 22% taxes annually on the Gross Gaming Revenue (GGR).
Software licence applications, on the other hand, will commence in early 2027, and licensed B2C gaming operators must procure software from licensed B2B software providers. The timeline for this law to take effect has been set for January 1, 2028. B2B software licences will also expire after 5 years. Software providers must follow the renewal process to continue operating in Finland.
Finnish Gambling Regulations to Comply with EU Laws
Finnish authorities have confirmed their plans to divide state-run Veikkaus Oy’s business into two separate legal entities within the same group. This is necessary to comply with the EU’s competition laws and ensure fair and transparent operations. One arm of Veikkaus will retain exclusive control over land-based casinos, while the other will compete with private online gambling operators.
The entity with a monopoly will retain exclusive control over the national lottery, land-based casinos, and physical slot machines nationwide. This licence will have to be renewed once a decade. Meanwhile, Veikkaus will form a separate company to compete with licensed online casinos and sportsbooks. This company will conform to the 5-year licensing and 22% annual tax laws.
Veikkaus anticipates significant changes to its organisational structure in the wake of the regulatory reforms. The company has anticipated over 30 layoffs, even though several new positions will likely be created. A new gambling regulator will be established within the Permit and Supervision Agency, as part of Finland’s gambling reforms. Its operations will be funded by the industry via a supervision fee for long-term sustainability.
Jussi Noormi, the COO of Hippos ATG Oy, a new gaming company founded by ATG and Suomen Hippos, explained the effect of the evolving regulations on the Finnish market. He expects the licensed gaming market to be extremely competitive. Operators will likely choose to operate from Finland instead of using a foreign licence, to avoid penalties and possible blacklisting.
Noormi said:
The licensed Finnish market will be very competitive from day one. A large number of operators are expected to enter simultaneously, all starting on a relatively level playing field. We also expect a higher channelisation rate, as many operators will choose to enter the market under a Finnish licence rather than operate from abroad. We will likely see a significant increase in marketing pressure in public channels, which could risk creating negative perceptions among parts of the public if not handled with moderation and care.