For the first time in several years, Finland is getting ready to drastically change its gambling laws with the new licensing bill. The government has planned a gradual phase out of the existing state monopoly and allow private players to offer their services in the market. In this article, we outline the time frame, changes in market structure, and the regulatory changes in simple language.
- The state monopoly will be ended by 2027
- Online markets are recommended for opening to private operator
- Veikkaus keeps on having a monopoly on lottery tickets, scratch cards and land-based gaming.
- The new body is to be based at the Ministry of Finance and is to be known as the Licensing and Supervisory Authority.
- There are very strict rules on advertising and other measures to protect the gamblers.
Thus, Finland is moving from a model where the state has a monopoly on gambling to a model where the state regulates private actors is a process of changing the country’s gambling model. The new bill was sent to Parliament in March this year, and with it, the monopoly on Veikkaus is set to be replaced by a more competitive licensing model that applies mainly to online gambling and betting.
It is expected that this change will take place in several stages in the next few years for both the operators and the players. Some of the services that were previously provided by Veikkaus will be provided by private companies. For instance, casino operators will be able to apply for the licenses in this new market. This shift is a fairly profound one towards a more liberal and creative gambling regime in Finland.
Timeline of the transition
Some important dates can be identified for the process. The bill was submitted to Parliament in March this year. The early requests for license applications are expected to be accepted as early as 2026, and the online casino games and sports betting services may begin to offer their services to the market to the private operators. It is expected that the full implementation of the licensing model will begin in January 2027, The licensing for B2B software suppliers is also planned for 2027-2028.
- March 2025 – The bill is sent to Parliament.
- 2026 – Applications for licensing will be available at the beginning of the year.
- January 2027 – Market launch for licensed operators
- 2027-2028 – Licensing for B2B software suppliers
Market Structure Changes
This is because the new arrangements under which Veikkaus will continue to control some gaming areas only. The company still owns the lottery, scratch cards, and the traditional face-to-face gaming machines such as slot machines. On the other hand, the online market is to be competitive, meaning that private firms will be allowed to offer casino games and sports betting services.
This structural division implies that although the traditional forms of gambling are kept within the state control, digital market will become more competitive and creative. Critics of the monopoly argue that this could mean that there are better products available and safer players.
A significant part of the reform is the creation of a new supervisory body.
This Licensing and Supervisory Authority that will be established at the Ministry of Finance will assume the regulatory functions from the National Police Board by 2027. It is to issue licenses, implement the rules on advertising and identify players, as well as offer self-exclusion services.
Operators will have to pay such fees as a €10,000 application fee and annual fees to keep their licensing. Other measures will also be put in place to prevent overAdvertisement and thus protect the players. It has been postulated that the new framework will help in the recoupling of the lost revenue while at the same time protecting consumers.
The economic impact and challenges
The shift toward a licensing model is to restore the equilibrium of the gambling industry in Finland. At present, a large part of the gambling revenues is spent abroad; the new system is supposed to solve this problem by promoting domestic competition. It is predicted that the increased competition will result in better prices, better products and services, and more developments in the market.
Nevertheless, the reform is not without its challenges. Health professionals have expressed concerns on gambling addiction, stating that ease of access may increase the cases of gambling related harm. The government has responded by tightening the rules on advertising and putting in place new measures to help the players.
Findings and Suggestions
In my position, I have been able to identify several factors that can play a role in the market trends. In my experience, it is important that the licensing procedures are clear and presentable and that there is a good framework for responsible gambling.
You may also want to check out this Wikipedia article on gambling policies to understand how regulatory control impacts consumer behaviour. The step by step approach enables regulators and suppliers to be ready for the changes while guaranteeing that the rules and market stability are maintained during the transition.
