Finland’s gambling landscape is on the cusp of a major shift, as the government has approved reforms that will move certain gambling activities from a state monopoly to a competitive licensing model. Announced by the Economic Policy Committee on November 1, the reform includes adding horse racing betting to this competitive market, alongside online sports betting and digital casino games. This marks a significant departure from Finland’s traditional state-controlled model, with the new framework set to take effect on January 1, 2026.
Key Changes in Finland’s Gambling Landscape
Under the new legislation, the state-owned Veikkaus Oy will continue to hold a monopoly over lottery operations and physical gaming machines. However, betting, online casinos, and digital bingo will operate under a licensed system, allowing multiple operators to participate. By introducing competition in these areas, Finland aims to curb gambling-related harms while promoting responsible gaming through a regulated market.
This reform also involves a process called “channelization”—encouraging players to use regulated services over unregulated ones. With horse racing added to the competitive sector, funds previously allocated to horse racing from state resources will be redirected to areas such as horse breeding and business support.
Competitive Licensing and EU Compliance
The new regulatory model introduces licenses for various forms of online gambling, including sports betting and virtual slot machines, while maintaining Veikkaus’s exclusivity over lotteries. The proposed law will now undergo a three-month review by the European Commission (EC) to ensure it aligns with EU principles on free movement and competition. This review phase will include feedback from other EU member states, with the final draft expected to reach Finland’s parliament in early 2025.
Local industry expert Jari Vähänen noted that this regulatory shift aligns with lobbying efforts from Finland’s horse racing industry, which has long advocated for a more flexible licensing environment. Industry watchers expect that under the new regulations, horse racing betting may expand to retail venues, broadening access for bettors.
Business-Friendly Adjustments and Taxation Changes
The revised version of the proposed law has introduced several business-friendly updates compared to the initial draft from July. Key changes include relaxed marketing restrictions, allowing offline brand marketing and limited bonuses for existing customers. However, the Gross Gaming Revenue (GGR) tax rate remains at 22%, with an additional supervision fee that could exceed 2% for some operators, adding to the tax burden. According to Antti Koivula of Legal Gaming, the revised law is now “significantly more business-friendly,” though it hasn’t fully satisfied all stakeholders.
While the reform allows certain marketing freedoms, strict rules remain to ensure consumer protection. Veikkaus Oy, for instance, will be prohibited from using influencer marketing, preventing public figures from endorsing Veikkaus products on personal platforms. This measure aims to shield minors and vulnerable populations from gambling exposure. Additionally, affiliate marketing that directs users to gambling sites will face limitations, curbing unregulated promotions.
Industry Reactions and Nordic Influence
The new framework draws parallels to gambling regulations in Denmark and Sweden, which have adopted similar competitive models. Nordic Gambling partner Morten Ronde praised the tax structure and the flexibility around bonuses, though he pointed out that guidelines for “moderate” bonuses remain vague. These regulations provide familiar ground for operators who already work in the Nordic market, potentially smoothing the transition for companies entering Finland’s soon-to-be competitive environment.
Despite the excitement, some industry insiders express concerns about potential loopholes. Finnish iGaming consultant Pasi Koskela cautioned that restrictions on affiliate marketing could inadvertently shift traffic to unlicensed platforms, undermining consumer protection efforts. He noted that without specific guidelines for affiliate promotions, there’s a risk that consumers might gravitate toward less reputable options.
Next Steps and Timeline for Implementation
Finland aims to finalize and introduce the law to parliament by early 2025, with a target date for passage by mid-2025. If approved, licensed operators could begin operations by July 1, 2026. The timeline reflects Finland’s urgency in adapting its gambling regulations to a rapidly changing market and establishing a responsible, well-regulated environment for gaming.
As Finland transitions to a licensing model, the reform signifies a blend of modern business needs with a strong emphasis on consumer protection. By balancing flexibility for operators with safeguards for players, Finland’s updated gambling framework aims to foster a competitive market that strengthens its position within the European gaming sector.
