FINLAND OPENS LICENSING WINDOW AS NEW IGAMING MARKET TAKES SHAPE AHEAD OF 2027 LAUNCH

Finland is preparing for a major shift in its gambling sector as policymakers move towards opening one of Europe’s last monopoly-controlled markets to competition.

Gambling is deeply embedded in Finnish culture, with a large majority of the population taking part in some form of betting each year. This is supported by widespread access, with slot machines commonly found in supermarkets and petrol stations, while televised lottery draws remain a long-standing national tradition.

At present, all gambling activity is controlled by the state-owned operator Veikkaus, one of the final monopoly systems still operating in Europe. This structure is set to change following legislation approved in December 2025, which introduces a licensing system for private operators. The regulated online market is scheduled to launch on 1 July 2027, although Veikkaus will retain exclusive control over land-based machines and lottery products.

Under the new framework, licensed operators will pay a flat tax of 22 per cent on gross gaming revenue. In addition, annual supervisory fees will vary depending on the size of the operator, starting at a few thousand euros for smaller businesses and rising to several hundred thousand euros for the largest companies.

Finland stands out internationally for its high level of gambling participation. Despite its relatively small population, the country generates significant revenue from the sector, with total gross gaming revenue estimated at €1.9 billion in 2026. A substantial majority of this is expected to come from online channels, while Veikkaus’ share has declined in recent years as more players have turned to offshore platforms.

This shift has reduced the effectiveness of the monopoly system. The proportion of gambling taking place within regulated channels has fallen markedly from previous levels, highlighting the need for reform and providing a key motivation behind the move towards a licensing model.

One of the central objectives of the reform is to bring more players into the regulated system. However, there are concerns about whether the new framework provides sufficient tools to tackle unlicensed operators. While certain measures will be introduced, including changes to taxation and stricter oversight of Finnish-language services, enforcement mechanisms remain limited and much will depend on how actively the regulator chooses to intervene.

Historically, enforcement activity has been minimal, with few formal actions taken against unlicensed operators. This raises questions about whether the new system will significantly improve channelisation without a more proactive regulatory approach. There is also a risk that overly restrictive rules on licensed operators could push players further towards unregulated alternatives.

As the launch date approaches, industry sentiment can best be described as cautiously optimistic. Finland’s strong gambling culture and high level of online engagement make it an attractive market, and interest from operators is expected to be high. At the same time, the relatively small population raises concerns about whether the market can sustainably support a large number of entrants.

Player protection is a central component of the new framework, although the details remain a point of debate. Proposed measures include centralised loss limits across operators, spending caps over different time periods, continuous monitoring of player behaviour and intervention mechanisms for those identified as at risk. Some stakeholders argue that these measures may be too restrictive and could deter players from using licensed platforms, while others point to uncertainty around their legal status, as certain elements are framed as guidance rather than binding rules.

Marketing restrictions are another area of concern. The framework places significant limits on digital advertising, including bans on affiliate partnerships and influencer promotions, alongside strict controls on social media activity. As a result, operators are expected to rely more heavily on traditional channels such as television, print media and sports sponsorships.

Critics argue that this approach may reduce the ability of licensed operators to compete effectively, particularly against offshore providers that are not subject to the same constraints. There is also uncertainty around how certain aspects of the law will be interpreted in practice, which could create compliance challenges. Similar ambiguity exists in the area of bonusing, where restrictions are in place but key definitions remain unclear.

Interest in the Finnish market is already building, with a number of operators having submitted licence applications and others expected to follow as greater clarity emerges. Current estimates suggest that between 40 and 50 operators could be active when the market opens, although success is likely to depend heavily on scale.

Larger companies with substantial marketing budgets are expected to be better positioned, particularly given the emphasis on mass media channels. Veikkaus is also likely to retain a strong position due to its established brand and existing customer base, and the company is already preparing for increased competition by upgrading its systems and expanding its capabilities.

At the same time, new entrants are exploring opportunities across different verticals, including sports betting and online casino, with some aiming to strengthen niche segments such as horse racing.

Overall, Finland’s transition to a licensing system represents a significant step in the evolution of its gambling market. The reform seeks to balance commercial opportunities with consumer protection while increasing tax revenues. However, its success will depend on how effectively the remaining uncertainties are addressed, particularly in relation to enforcement, regulatory clarity and the balance between restrictions and competitiveness.

If these elements are aligned, Finland has the potential to become one of Europe’s most attractive regulated gambling markets.