Finland to Liberalize Online Gambling

Finland is set to overhaul its gambling industry by transitioning from a state-controlled monopoly to a regulated licensing system. This landmark shift aims to address the growing presence of unregulated online gambling while enhancing consumer protection and tax revenue.

The End of a Monopoly

For decades, Finland has maintained a state-run gambling monopoly through Veikkaus Oy, directing all gambling revenues to public welfare projects. However, as online gambling surged, many Finnish players turned to international platforms, bypassing domestic restrictions. This led to increased concerns about consumer protection and the loss of potential state revenue.

Recognizing these challenges, Finland has decided to follow the example of other European nations like Sweden, Denmark, and Germany, which have successfully introduced licensing systems.

Key Changes Under the New Law

The Finnish Ministry of the Interior introduced a draft Gambling Act in July 2024, which is expected to take full effect by 2027. The proposed legislation includes:

• A Licensing System: Private operators will be allowed to apply for licenses to offer online gambling services, including betting, online casino games, slot machines, and bingo. Licenses will be valid for up to five years.
• Veikkaus Retains Some Control: While private operators can enter the market, Veikkaus will still have a monopoly over lotteries, scratch cards, and physical slot machines.
• A New Regulatory Body: A dedicated Licensing and Supervisory Authority will oversee compliance, issue licenses, and enforce regulations, replacing the National Police Board in this role.
• Stronger Marketing Restrictions: Advertising regulations will become stricter, with bans on bonuses and the use of influencers to protect minors and vulnerable individuals.
• Taxation and Supervision Fees: Licensed operators will be taxed at 22% of their Gross Gaming Revenue (GGR) and must pay annual supervision fees based on their net revenue.

Implementation Timeline

The transition will take place in stages:

• 2026: The application process for business-to-consumer (B2C) licenses opens.
• 2027: Licensed operators can begin offering gambling services under the new regulations.
• 2028: Business-to-business (B2B) licenses for gambling software providers come into effect.

Public Consultation and Next Steps

The Finnish government has opened the draft legislation for public consultation until August 2024, allowing stakeholders to provide feedback. The final proposal is expected to be presented to Parliament in spring 2025. If approved, the new system will be fully operational by the end of 2026.

A New Era for Finnish Gambling

The move to liberalize online gambling represents a major shift in Finland’s regulatory approach. By balancing market competition with strict oversight, the country aims to create a safer and more responsible gambling environment while boosting state revenue.

As Finland prepares for this transformation, industry stakeholders and consumers alike will be watching closely to see how the new system unfolds.

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