The Long-Awaited Decision Finally Arrives
When the Finnish government submitted a proposal for new gambling legislation to Parliament in early April, it was hoped that Parliament would make the decision before the summer holidays. However, this did not happen, and the discussion of the matter was postponed to the autumn. At times, it appeared the Parliament's decision would be made before the summer holidays, but in 2026 rather than 2025.
However, the discussion is complete, and the law's official approval is a formality. The President's signature will be required to confirm the law later this year, but it is just a standard part of the process. Fortunately, the postponement of the decision-making did not directly affect the planned schedules.
Why the Parliamentary Process Was Delayed
The delay in the parliamentary process was primarily due to a few potential constitutional issues and disagreements over the timetable for the law's implementation. There was no significant political debate over the need to change the gambling system, but the parties' views on the emphasis on responsible gambling and on business opportunities differed as expected. The current right-wing government places a slightly higher emphasis on business than the left, which emphasises responsibility. This is also reflected in the two dissenting opinions: the Left Alliance proposed starting the legislative preparation from scratch, and the Greens proposed adding several elements of responsibility to the legal text. The Parliament voted by a clear margin (153-21) in favour of the Administrative Committee's report, which clearly illustrates the parties' unanimity on the matter.
New Timeline and Key Implementation Dates
The law will take effect on January 1, 2026, and the application process for gambling licenses will begin on March 1, 2026.
The most significant change concerns the timing of the practical transition from the current gambling system to license-based operations. Initially, this was scheduled for the beginning of 2027, but the go-live date has now been moved to July 1, 2027. At the same time, it was decided to move the introduction of the gambling software license (B2B license) to July 1, 2028. The schedule change will also affect the start date of the new supervisory authority. The current supervisory authority, the National Police Board, will oversee the licensing process and serve as the regulator until the end of June 2027. After that, the new Licensing and Supervision Authority, which operates under the Ministry of Finance, will become the supervisory authority.
Finland’s Gambling Market: Attractive and Competitive
Finland is an interesting market for gambling operators.The legislation aims to establish a system in which the channelisation rate is maximised (approximately 90%).
This should be done in a way that does not increase gambling problems and allows gambling companies to conduct reasonable business in Finland. In my opinion, the creation of this entity was at least sufficiently successful. At least the Finnish Gambling Industry Association, PAF, and the current monopoly company, Veikkaus, seem reasonably satisfied with the outcome. There has been more criticism from smaller operators, but at this stage, there is no compelling reason to critique the system.
What Changed During Parliamentary Discussion?
I have already discussed the content of the upcoming law in my previous blogs, and there were no significant changes to matters that would affect business opportunities during the parliamentary debate. If you want to learn more about the content of the law, you can read the blog post I wrote at the beginning of April. At this stage, however, the most significant change to the bill concerns the authorisation for search engine marketing.
Games and the gambling license holder that operates them may be marketed in online search engines when the search term is directly related to the license holder or the game it operates. In practice, this enables, for example, the use of Google Ads as a marketing tool.
Why Finland Appeals to Gambling Companies
Finns spend more money on gambling per capita than most countries. I don't know Finland's exact ranking on that statistic at the moment, but we have been among the top 3 countries and are likely still in the top 10. So, the market is attractive to gambling companies. The new legislation enables a wide range of products to be sold through digital channels, and betting products can also be sold in retail channels.
In addition, marketing opportunities are strong, particularly in mass media, where brand-level advertising can be conducted relatively freely. The same applies to sponsorship. The volume of gambling is not restricted; customers are required to set deposit limits for each operator they use, but there is no upper limit on these limits. I believe that, given these opportunities, we will see a surge in gambling marketing, at least in the first year of the new system's operation. However, based on experience in other countries, it can be assumed that advertising volume will plateau at a level significantly lower than during the initial boom.
Opportunities and Risks for Operators
Although the business opportunities appear favourable to gambling companies, there are also risks to their operations. There is a risk that marketing will become so extensive that public opinion will turn against gambling. At present, Finns have a reasonably favourable attitude towards gambling. It is crucial for the entire gambling industry that operations ensure Finns are satisfied and that the climate remains positive. One of the most significant threats is related to the supervision of gambling activities. To achieve the most critical goals of the reform, the supervisory authority must make every effort to prevent companies operating outside Finland's license-based system from doing so. In Sweden, the regulator has, in practice, focused on supervising only the operations of licensed companies, which is why “black market” operators have captured an increasing share of the digital casino market. The same must not happen in Finland.
A Unique Market Requiring a Unique Approach
We are on the threshold of a significant change. Finland is an interesting gambling market, but one with its own special characteristics. Finnish customers are not the same as those in Sweden, for example. Therefore, gambling companies should not copy the operating model directly from Sweden. A better approach is to develop a Finland-specific model that accounts for customer behaviour, partner networks, and specific technical operating requirements.
Jari Vähänen
Stay up to date on the latest news from the Finnish market, sign up to our newsletter!
