Finland has had a unique approach to regulating online gambling operators for decades. While most of its neighbours in the European Union have gradually embraced the multi-licencing model, Finland has opted for a state monopoly with Veikkaus Oy. However, those days will soon be a thing of the past, courtesy of the changing regulations.
Let’s Catch Up on the Main Points:
- Finland’s new licencing regime will align local regulations with European standards, much like Ireland’s new gambling regulations which took effect from March 2025.
- The final draft legislation submitted to the Parliament in March 2025 outlines the new regulations.
- The rollout will begin in stages from 2026. Licenced operators can expect to launch live in 2027, while licenced B2B suppliers can expect a 2028 operation date.
Finland’s Embracing Modern Regulatory Approaches
Finland’s modern gambling regulations were introduced to Parliamentary hearings on 20th March 2025. The Bill, which passed all regulatory hurdles, will take effect in 2026 and align the Country’s gambling regulations with those of their counterparts throughout the rest of Europe. This marks a significant shift in Finland’s approach to legalising online gambling, joining other markets whose regulations have been recently updated such as Czechia and Ireland, for example. Maarten Haijer, Secretary General of the European Gaming and Betting Association (EGBA), commented:
Finland’s landmark iGaming regulations bring it on par with the rest of the EU member states. Every European country today has adopted some form of multi-licencing, which is a significant milestone in our combined effort to form competitive, multi-licenced markets. This is a major step toward abolishing monopolies and protecting consumers with modern regulations.
Veikkaus Oy Struggles to Stay Afloat with Offshore Competition
Finland’s gambling model failed to keep pace with increasing competition from offshore platforms, particularly in light of the rise of iGaming across the region. Veikkaus Oy’s exclusive market pushed players toward offshore operators accommodating Finnish players. With nearly half the market drifting towards interests offshore, Regulators lost a significant amount in tax revenue and failed to ensure player protection on these platforms. When these failures became too apparent to ignore, the Government pushed for new regulations to cover these conditions.
Data reveals that approximately €520 to €590 million went to offshore gambling platforms in 2021 – nearly 41% of Finland’s iGaming market at the time. Regulators quickly realised that the monopoly left a gaping hole in the domestic online gambling market and pressed the need for immediate policy reform.
Experts projected that by 2023, offshore gambling losses would surpass €550 million, which would not only bleed the tax coffers but also leave players without regulatory protection. Moreover, Finland’s gambling market is expected to cross the €2.4 billion mark by the end of 2025, with the bulk of that revenue coming in from online gambling activities, underscoring the urgency for regulatory reforms.
Finland’s Government Proposes Regulatory Reforms
The Finnish government, in an unusual alignment with operators, openly supports a multi-licencing model over a monopoly. According to Heikki Koivula, Head of Compliance at Legal Gaming Attorneys at Law, things took a turn when pressure started building up. He said,
The political hurdles were primarily due to money and vested interests. As long as Veikkaus generated high enough revenue, no one wanted to mess with the system. But as market shares dropped, reforming the system became a viable alternative.
Earlier in 2022, Olli Sarekoski, the CEO of Veikkaus, publicly proposed dismantling the regulator’s monopoly. This courageous move was only made possible by the organisation’s political clout. The draft regulation was submitted to the Parliament on 20th March 2025, and it outlines the reforms in line with the rest of the EU.
According to the statutes, private operators can now apply for online gambling and sports betting licences. Meanwhile, Veikkaus remains the sole authority over land-based gambling and lotteries in Finland. The new regulations will roll out in stages, and licencing applications are set to begin in 2026; operators can expect to go live the following year. From 2028 onward, only licenced B2B suppliers can operate in the Finnish market.
Assessing the Need for Immediate and Decisive Action
The need for reformed gambling laws in Finland isn’t just for the tax coffers. A new study by Takaisinperintä shows an alarming trend. 28% of struggling borrowers took out payday loans for gambling. This data reaffirms the need for immediately implementing consumer safety guidelines.
Gambling and betting make up the third most common reason for borrowing among Finnish debtors, after household repairs and essential goods. The need for smart licencing is at an all-time high, as the onus will be on player protection from the very beginning. The reformed Gambling Act needs to set the ground rules that online gambling platforms must follow. Speaking on the issue, Koivula remarked,
The Ministry of the Interior is currently finalising the particulars of the bill. The Act will define how to identify and address problem gambling behaviour. The use of modern tech, such as AI, can also be considered.