Finland initiates restructuring of gambling industry
The Finnish Gambling Revamp is Underway
Get ready, folks! Finland is diving headfirst into a long-contested plan to rework its gambling landscape by granting commercial licenses to independent operators starting 2027. Kicking things off is the proposed bill making its way through the country's parliament, set to dismantle the current monopoly held by Veikkaus.
Overpowering Veikkaus
By the end of 2026, Finland's state-owned gambling behemoth, Veikkaus, will be history. In comes a license-based model where international gambling firms can bid for the rights to provide local gambling services, following the end of intense debates about the nation's gambling future.
Nearly half of Finnish gamblers are already spinning the reels at offshore sites, which aren't local to Finland. This means that a lot of tax revenues are jetting off abroad. Adding to the concerns is the weaker protection for gamblers on these foreign sites.
The government anticipates a regulated industry to protect the population from gambling-related issues and generate more revenue for the state. However, health experts argue that legalizing gambling and allowing certain advertising won't diminish gambling-related challenges.
Brand New Regulations
The new bill's recommendations are yet to be finalized by lawmakers, but the core idea is clear: shift the monopoly away from Veikkaus and hand it over to several companies fulfilling specific criteria based on European standards and best industry practices.
The new gambling firms will be allowed to offer online casino games, but Veikkaus will continue to hold a monopoly over scratch cards and lottery tickets.
Stringent Advertising Rules
The new gambling industry will come complete with strict marketing regulations, including a ban on popular influencers and personalities endorsing gambling products. Finland plans to mirror advertising measures adopted by other nations, such as the Netherlands.
Physical advertising for high-risk gambling products will also be restricted as Finland aims to safeguard its citizens. The new system will also establish a monthly deposit cap for players, even though it won't explicitly track losses.
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Finland's Gambling Reform: A Deeper Look
In simple terms, Finland's gambling reform introduces a partial licensing system effective as of January 1, 2026. Here are the essential details:
Licensing StructureA single license grants access to betting, online casino games, electronic bingo, and online slots. Activities not covered by licensing will remain under the state's control, such as Veikkaus' offerings.
Criteria for EligibilityWhile specific criteria (like financial stability and anti-money laundering compliance) aren't definitive, the authorities emphasize preventing illegal operators and reducing harm. The eligibility requirements remain unclear at this time.
Advertising Restrictions- Affiliate Marketing Ban: A ban on third-party affiliate promotions to avoid misleading information and confusion between legal and unregulated operators.- Consumer Protections: Advertising must comply with Section 52 requirements, calling for clear risk information and license status disclosures.- Impact: Critics warn of potential decreases in channelization rates and inadvertent boosts to the black market due to the affiliate ban.
Challenges and Concerns- Unlicensed Operators: Some worry that Finland will follow in the footsteps of Sweden, which failed to stem the tide of unlicensed operators.- Community Influence: Online forums and streaming platforms wield significant power in shaping gambling habits, posing challenges for regulating cross-border operators.
- The Finnish Government anticipates that the regulated gambling industry will help protect the population from gambling-related issues and generate more revenue for the state, but health experts argue that legalizing gambling and allowing certain advertising won't diminish gambling-related challenges.
- The new gambling firms will be allowed to offer online casino games, but Veikkaus will continue to hold a monopoly over scratch cards and lottery tickets.
- The new bill's recommendations are yet to be finalized by lawmakers, but the core idea is clear: shift the monopoly away from Veikkaus and hand it over to several companies fulfilling specific criteria based on European standards and best industry practices.
- The new gambling industry will come complete with strict marketing regulations, including a ban on popular influencers and personalities endorsing gambling products and a ban on third-party affiliate promotions to avoid misleading information and confusion between legal and unregulated operators.
