Highlights
- The license model has the full support of all the actors in the market, and based on the presentations given at the event, all key political parties seem to be in agreement on moving forward.
- According to the Finnish government program, the Finnish iGaming market should be regulated by 1 January 2026 at the latest. Given that the preparatory work has not started yet, there was a general consensus and worry about the timeline. In order to meet the deadline, the legislative process should commence without any further delay.
- Player protection is at the core the gambling reform, however, in order to achieve the channelisation target, which is not yet set, some form of marketing needs to be allowed.
September 14 and 15, 2023 saw Finland’s historic first iGaming conference, held at the beautiful Kalastajantorppa conference centre in Helsinki. The event was organised in anticipation of the coming regulation of the Finnish online gambling market, currently expected in early 2026. The event featured industry and political leaders from within Finland and neighboring Nordic countries. It kicked off with opening words from Mika Poutala, a Finnish Member of Parliament who shared his insights into the political process, and general agreement from across the political parties in Finland to move forward with the regulation of the market. Finnish industry leader Jari Vähänen formerly of Veikkaus and now a respected consultant followed up with his own thoughts about the pending changes and potential timelines. Among other insights, Mr. Vähänen raised a concern, which was also shared by many in the event: if the reform is not kicked off urgently, the current timeline is at risk. Many have speculated that the difficulties faced by the new Finnish government in finalising the coalition and beginning ministerial work could push the expected date from January 2026 to January 2027. According to Vähänen it may also be possible for other start dates inside 2026 to be considered. So if the timeline is too short, things won’t necessarily move all the way out to the following year.
The morning’s first panel kicked off with keynote speaker Mikko Alkio (Roschier) and commentator Mika Kuismanen (Finnish trade association for online gambling). Mr. Alkio was part of the group tasked with writing the white paper for parliament to review the state monopoly system and possible alternative paths for regulation. In his comments, Mika Kuismanen pointed out that many have argued that the key findings of the report seem to support the implementation of a Swedish-style regulated market, while the report still leaves open the possibility of strengthening the government monopoly as was done in Norway. Mr. Alkio later responded that his group was simply fulfilling the mandate as required by the government - highlighting all potential options without recommending one specifically.
These topics were then discussed at length by a panel of experts, including, Gustav Hoffsted (BOS), Carl-Fredrik Stenstrøm (NBO), Birgitte Sand (Birgitte Sand & associates), Velipekka Nummikoski (Veikkaus), moderated by Minna Ripatti (Legal Gaming).
After lunch, the next discussion looked at the case study of Sweden featuring Hans Lord Skarplöth (ATG) and Peter-Paul de Goeij (NOGA). The conversation explored the recent Swedish experience of regulating the market and focused on learnings that could be helpful for Finland. One of the main take-aways was that time is of the essence. January 2026 is very close from a bureaucratic point of view. There are a lot of things that need to happen if the market will be ready to open in that timetable. The experts advised that there is no such thing as “perfect regulation”, and the Finnish authorities should concentrate on taking the best learnings from the neighboring countries and create a flexible framework that can be adapted as needed in the future.
The next discussion focused on the important topic of responsible gaming and featured industry experts. The conversation kicked off with a keynote speech by Michael Egerer from the University of Helsinki. Mr. Egerer went over his research into the nature of problem gambling and habit formation which needs to be addressed in any regulatory framework. The panel guest included Daniela Johansson (PAF), Susanna Saikkonen (Veikkaus), Inka Silvennoinen (Peluuri) and was moderated by Maris Catania (SG:certified). It was an interesting conversation that explored the challenges in striking a balance between maximising player safety and maximising channelisation. The panel also touched on subjects related to marketing, and the types of messaging that should be appropriate and permitted in the coming regulation. Altogether there was a clear consensus that marketing should in no way address children under the age of 18, with some also considering that an older cohort from 18 to 25 should be considered for protection in the legislation as well.
The closing panel of the first day focused on channelization, and the challenges faced by legislators to draft a regulatory framework that keeps as many players as possible inside the legal channels.The panel was kicked off with a keynote address by Christer Fahlstedt (CEO of PAF) who was then joined in discussion by Antti Koivula from Legal Gaming. Mr. Fahlstedt presented some highly insightful findings from PAFs own customer research. PAF is to date the only operator that publishes the proportion of GGR that can be attributed to specific player groups according to their net annual wins and losses. The revealing data shows counterintuitively that a large proportion of players are actually net-winners - up to 25%, while a significant portion of the casino’s revenue is derived from a small fraction of players (less than 3%). It is precisely these problem gamblers that must be protected by the regulation - however it has been shown that state-imposed limits and exclusions can easily push these players out of the legal channel where there is no protection from scrupulous grey market operators. Mr. Falhstedt suggested that it would be an overwhelming challenge for regulators to focus their efforts on chasing down these operators who disappear and reappear overnight with different names and shell companies. He suggested the most effective way to tackle the channelisation issue is to focus on the large, stock-listed providers, many of whom do more business on the grey-side than on the regulated side - even in their own home markets. These are large companies whose products are in demand across the industry, and focusing efforts to rein them into the legal channels would be a more effective way to approach the issue according to Mr. Fahlstedt.
The first day ended with closing remarks from Finnish Member of Parliament Sinuhe Wallinheimo who addressed the timeline challenges faced by the new Finnish government in moving the process forward while still resolving the issues with forming the government coalition. He remarked that the Minister for the Interior has not yet had time to initiate the process.
Day two of the event brought even more informative discussions. It began with a discussion about the opportunities and challenges within media and sponsorships. The panel started with an address from Klaus Virkkunen (Sponsor Insight), who gave a comprehensive overview of the sponsorship market in Finland and potential impacts of the incoming regulation. He was then joined by Sami Kauhanen (Finnish Ice Hockey Association), Pekka Ilmivalta (Finnish Floorball Federation), Minna Mäenpää (Suomen Hippos) and Marco Casagrande (Finnish Football Association), moderated by Pekka Kaidesoja (PKB). The panelists looked at opportunities for sports sponsorship, and potential restrictions that will come with the regulation. Although there was disagreement on exactly what types of restrictions would strike a fair balance between maximising new income for professional athletes and organisations, and ensuring player protection - particularly for those underage. Again, the panel had consensus on the idea that any restrictions should be aimed towards minimising exposure to those under 18.
The CEO panel was the highly anticipated final discussion of the conference. It was moderated by Jari Vähänen and the panelists included Hans Lord Skarplöth (ATG), Christer Fahlstedt (PAF), Fredrik Wastenson (Svenska Spel) and Velipekka Nummikoski (Veikkaus). The panel wrapped up the major themes of the conference and priorities for the incoming regulation as being:
- Taxation
- Marketing
- Limits
- Channelisation
- Attitude towards unlicenced operators
All panelists agreed that the government must act to protect the monopoly (Veikkaus), because the system is currently broken, with Veikkaus currently having less than 50% channelisation in Finland. The regulation must be enacted quickly, and the focus should be on implementing the successful rules and frameworks from neighbouring countries, while building a flexible structure that can be adapted easily going forward. Perfection is not achievable and striving for it will create delays that only cause further harm to players who continue to fall out of the legal channels where they are offered the best protection and help resources.
All in all the very first Finnish iGaming event was a huge success. The panel discussions were lively, contentious, entertaining and well-attended. The information shared provided important insights from industry leaders that would be very helpful to Finnish policy makers as they begin the process of regulating the market. Attendees agreed that this will be the first of many such events, and next year the situation will be much clearer for all.