Finland gambling reform bill enters parliament - Legal & compliance

Finland’s Government Introduces Landmark Gambling Reform Bill

On March 20, 2023, the Finnish government submitted a transformative bill to the parliament, aimed at overhauling the country’s gambling framework. This initiative aligns with the aspirations of the online gambling trade body, Rahapeliala Ry, which hopes for the law’s enactment by mid-summer.

A New Era for Finland’s Gambling Market

The main highlight of this proposed legislation is the opening of Finland’s online gambling market to private operators. This move mirrors regulatory shifts in other Nordic nations, such as Sweden and Denmark, which have successfully transitioned from monopolistic frameworks to competitive markets.

Currently, Veikkaus operates a state monopoly encompassing lottery, online sports betting, and casino games. If the bill is ratified as is, this exclusive status will cease by the end of 2026. However, Veikkaus will retain its monopoly on lottery and scratchcards, in addition to retail gaming machines and certain casino games.

Implementation Timeline:

Licensing Application: Operators will be able to apply for licenses starting January 1, 2026.
Market Launch: Stakeholders anticipate the restructured market could open as early as 2027, though some suggest an expedited timeline due to the bill’s swift parliamentary progress.

Aiming for Responsible Gambling

The Finnish government advocates that this regulatory overhaul aims to diminish gambling-related harm within the nation. By enabling a range of approved operators to enter the market, the government hopes to curtail the use of unlicensed sites, which often lack essential consumer protection measures.

Interior Minister Mari Rantanen emphasized the bill’s dual focus: “Our goal has been to create a regulatory solution that balances the need to combat gambling harms while also accommodating the interest of operators to apply for licenses and direct gambling activities towards a regulated framework.”

Prospects for Bill Approval

The bill will now proceed to parliamentary subcommittees for detailed examination. Although adjustments may occur, stakeholders do not expect these revisions to significantly delay the process.

In January, Mika Kuismanen, CEO of Rahapeliala Ry, expressed optimism that parliament could approve the law by June. However, local gaming attorney Antti Koivula provided a more cautious forecast, suggesting that a vote might occur in autumn 2025, possibly following minor modifications.

Koivula stated, “Given the broad political consensus on the necessity for reform, the vote will likely be a formality.” He flagged this as a critical juncture for Finland’s iGaming industry, marking the potential dismantling of the longstanding gambling monopoly and paving the way for competitive practices in alignment with European standards.

Additional Changes in the Proposed Legislation

Aside from opening the market to private operators, the bill entails various other significant measures:

Horse Racing Betting: Commercial operators will be permitted to accept wagers on horse racing, currently a privilege exclusively held by Veikkaus under its monopoly.
Gambling Age and Identification Measures: The legal gambling age remains at 18, and all players will be required to present valid identification to participate in gambling activities. A new self-exclusion scheme will also enable consumers to opt out of all legal gambling platforms.
Player Monitoring and Protection Initiatives: Operators will be mandated to monitor player behavior for signs of distress and implement safeguards to counter abuses and criminal actions associated with gambling.
New Regulatory Authority: A proposed Licensing and Supervision Authority will oversee the newly regulated market to ensure compliance and protect consumer interests.
Marketing Regulations: Marketing practices will be allowed under specific constraints, including prohibiting advertisements aimed at minors or vulnerable populations and restricting the use of minors in promotional content.

This reform represents a decisive step toward modernizing Finland’s gambling landscape, fostering a safer environment for consumers while enhancing competitiveness within the sector. As the legislative process advances, stakeholders are encouraged to remain engaged and informed about the evolving regulatory framework to navigate the new landscape effectively.