Revolution in the gambling industry in Finland: End of monopoly creates space for licensing model
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30 Oct 2023 •
Reading time: 2 minutes Finland is set to revolutionize its gambling industry by replacing its old monopoly model and introducing a licensing system. With a new project the Finnish Regulator is aiming to modernize the country and align with EU standards for online gambling.
Veikkaus, holder of the monopoly on games of chance in Finland until 2026, therefore sees its monopoly coming to an end. The company supports this reform and advocates for a licensing model. This means that operators can get access to the Finnish market.
Farewell to the Veikkaus monopoly
The old Veikkaus monopoly model, which reigned supreme over the gambling sector in Finland, will give way, from 2026, to a licensing system open to foreign operators. This transition comes as a response to the decrease of tax revenues, the loss of control over the gambling market and the increasing popularity of international gaming sites by Finnish players.
The objectives of the reform
Finland is the last European Union member state to maintain a state monopoly for online gaming activities. The planned reform aims to regulate licensed gaming activities, define licensing fees, taxation, responsible gaming rules, prevention of gambling-related problems and regulation of advertising. The project will extend until December 31, 2025, with the aim of presenting a legislative proposal in spring 2025.
The European Online Gambling Operators Association (EGBA) fully supports the reform goals set by the Finnish government. The EGBA believes that this change will strengthen player protection, increase tax revenue for the Finnish state, create a level playing field for operators in terms of compliance and enable effective monitoring of Finland’s online gaming market.
This move to a licensing system will also help combat illegal operators who currently operate outside Finnish laws. Advertising rules, restrictions and mechanisms to combat gambling-related harm may be strengthened and harmonized for the benefit of Finnish players. Something that caused issues in the past and present for the Finnish government.
Impact on Finnish players
Finland’s old monopolistic model has led to a migration of players to international sites offering greater supply and more competitive betting options. This had an impact on tax revenues, control of the gambling market and the protection of Finnish players. The new licensing system should resolve these issues and provide players with better protection.
Finnish players will soon have access to a wider variety of licensed operators, which will guarantee them a more competitive, diverse and above all less risky gaming experience.
A modernized gaming industry
With this reform, Finland aims to modernize its gambling industry and provide Finnish players with a more transparent and competitive gaming experience. The licensing system should enable Finland to comply with European standards for online gaming, providing players with a greater variety of options and better protection.