Finland’s new Gambling Law: EGBA sees room for improvement
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7 Sep 2024 •
Reading time: 3 minutes Finland is set to make major changes to its online gambling laws, marking a significant milestone in European gambling regulation. Finland is the last EU country to have a monopoly model for online gambling, and the move to a multi-licensing system is seen as a positive change. This brings Finland in line with the rest of the EU, all of which already have some form of licensing framework for online gambling.
EGBA Supports New Law, but sees room for improvement
The European Gaming and Betting Association (EGBA) welcomes the proposed legislation, which it has advocated for many years. Experience shows that a monopoly model does not work well in the online world and that consumers are best protected in a well-regulated but competitive environment. In such an environment, safeguards such as deposit limits and self-exclusion are available to players.
While Finland’s bill is a step in the right direction, there are some areas that need improvement to ensure the new licensing framework achieves its goal of ensuring Finns play on locally licensed sites.
Marketing restrictions and bonuses could backfire
One of the main concerns is the proposed restrictions on marketing, specifically the ban on affiliate marketing and social media advertising. These channels play a crucial role in directing consumers to licensed, regulated platforms. Without these tools, players are likely to turn to illegal gambling sites that do not comply with Finnish regulations or prioritize consumer safety.
In addition, the proposal to ban bonuses entirely raises questions. While setting limits on bonuses is supported, a complete ban could weaken the competitive position of newly licensed operators against illegal providers. This could push players towards unregulated sites, undermining the consumer protection that the legislation is intended to strengthen.
EGBA proposes partial authorisation of affiliates and bonuses
In response to the government’s recent consultation, the EGBA proposes two key improvements: first, Finland should include affiliates in the regulatory framework and allow social media advertising under clear rules. Both are valuable tools to drive players to licensed operators. By introducing clear guidelines, such as mandatory responsible gambling messages, Finland can harness the power of these marketing channels while maintaining high consumer protection standards.
Second, it would be better not to ban bonuses altogether, but to establish guidelines for their responsible use. For example, bonuses could be banned for players who show signs of problem gambling, or clear rules could be set out on when and how bonuses can be offered. This approach would allow operators to compete more effectively with unregulated sites, which will undoubtedly use bonuses to lure Finnish players away from regulated sites.
Finland follows Denmark and Sweden in gambling regulation
Finland is at a crucial moment in its gambling regulation history. By developing a successful online gambling framework, Finland, like its neighbours Denmark and Sweden, can successfully transition from a monopoly to a well-functioning licensing system. Denmark’s transition to a multi-licensing system in 2012 led to a significant improvement in online channelisation, with over 90 percent of players now gambling via licensed platforms. Sweden has seen similar improvements.
Addressing concerns over marketing restrictions and bonus regulations is essential to ensuring that the new legislation achieves its goals. This will protect Finnish consumers while promoting a healthy, well-regulated online gambling environment.