Finland is moving ahead with significant reforms to its gambling legislation, aiming to create a more structured and regulated market. The updated bill, first proposed in July, has now entered the EU notification process.
This critical step paves the way for its potential implementation in 2026, with an emphasis on balancing monopoly operations and a new multi-license system.
The EU Notification Process
The EU notification process for the proposed gambling bill began on November 1, 2024. This process typically spans three months, though it could extend to four months if member states request additional time for review. Once the EU process is complete, the legislation will return to Finland for further refinement before being presented to the Finnish Parliament.
The government aims to submit the bill in spring 2025, with hopes of parliamentary approval by fall 2025. If passed, the new gambling framework will take effect on January 1, 2026. The licensing process would then commence, with full practical implementation expected between July 2026 and January 2027, depending on the readiness of the supervising authority.
Monopoly and Multi-License Systems
The proposed bill outlines a dual approach, combining state-monopoly operations with a multi-license system for certain gambling products. The monopoly system will operate under exclusive licenses, granted only to companies under direct state control.
These exclusive licenses, valid for ten years, will cover lottery games, scratch cards, and physical casino operations, including slot machines. Initially, these licenses are expected to remain with Veikkaus, Finland's state-owned gambling operator.
In contrast, the multi-license system will open up opportunities for private operators to offer digital casino games, digital bingo, digital slots, fixed-odds betting, pool-based betting (including horse racing), and virtual betting. A single gambling license will allow operators to cover all these products, eliminating the need for separate licenses for different categories.
Marketing and Operational Changes
The bill introduces stricter guidelines for marketing and player incentives. Operators must handle their own marketing efforts, which must remain moderate in scope and frequency. Marketing via third-party affiliates will be prohibited, a decision that has drawn criticism from industry stakeholders. Instead, operators will be limited to promoting their offerings on their own websites and social media platforms.
Bonuses and loyalty programs will also face tighter restrictions. While operators can offer moderate bonuses to existing customers, these bonuses cannot incentivize excessive play or be tied to the amount of money spent on games. The maximum wagering requirement for bonus money is capped at five times.
Additionally, operators must provide players with tools to monitor their gambling behavior, including access to account balances, transaction histories, and self-assessment features to evaluate gaming habits.
Exclusions and Restrictions
Certain types of betting will remain off-limits under the new legislation. These include wagers on state elections, economic variables such as stock market performance, and penalties or violations in sports events, such as red or yellow cards. Lottery betting will also be prohibited.
Furthermore, operators applying for licenses will face a “cooling-off” principle. Companies that have violated Finland’s current Lotteries Act by engaging in unlicensed operations or marketing since September 2024 will be ineligible for a license for two years.
B2B Licensing Set for 2028
A notable feature of the proposed legislation is the introduction of B2B licenses for gambling software providers. From 2028, gambling operators in Finland must use software from licensed providers. This includes random number generators, betting platforms, live casino streaming solutions, and other gambling-related technologies. Applications for B2B licenses will open in early 2027.
Challenges and Criticisms
Despite progress, the updated bill has faced criticism for certain provisions that could limit its effectiveness in channeling players to the regulated market. The ban on affiliate marketing is seen as a missed opportunity, as it leaves a crucial promotional tool solely in the hands of unlicensed operators. Additionally, the restrictions on bonuses and incentives remain vague, raising concerns about their practicality and appeal to players.
Looking Ahead
While the updated gambling bill has introduced positive changes, such as streamlined licensing and player protection measures, challenges remain. The balance between regulation and channeling players into the licensed system will determine its long-term success.
As Finland moves toward a new era of gambling regulation, industry stakeholders and policymakers must work together to ensure the system meets its goals while fostering a competitive, responsible, and appealing market.
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