The Nordics have been a hotspot for online gambling licensing and regulation. With the financial success of Sweden, it was expected that Norway and Finland would soon follow suit. If they adhere to the proposed schedule Finnish gamblers could enjoy a variety of online casino entertainment by 2027.

While it has taken longer than expected, Finland has finally decided to abandon its archaic monopoly in favour of a multi-licensing framework that will keep local spending in the country and improve player safety.

Rather Late Than Never

As with any government decision, money eventually spoke louder than tradition or ego. Both online gambling and land-based casino games are popular across Finland; however, due to state-owned Veikkaus Oy’s monopoly on Online Slots and other games of chance, it has not been able to meet the community’s gambling needs.

Pia Ek of international law firm Bird & Bird said:

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“The starting point of the government’s programme was that too much of the online gambling in Finland was trickling to illegal operators on the grey market, and the aim of the proposal is to ensure that there are enough legal opportunities to channel gambling into licensed operators instead.”

The lack of bonuses, exciting games, and brand diversity has resulted in more than 50% of the country's gambling spending at unlicensed online casinos, which are hosted internationally to avoid falling under Finnish law.

iGaming consultant and ex-Veikkaus employee Jari Vähänen explains:

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“They have tried to have a balance between business opportunities and responsible gaming. The goal has been to raise the channelisation as high as possible.”

As we have seen from the regulated Swedish gambling markets' fall from grace, this focus on channelisation drives success.

Licensing the correct brands, ensuring there are enough sites for players to move between, and not limiting the types of games and bonuses that can be claimed will ensure that more than 80% of players spend their cash within the Finnish framework rather than overseas.

 There Are No Free Lunches

The bill claims that a newly formed Finnish Supervisory Agency will take the reins of the country's legal online gambling sector. The Agency will ensure that license fees are collected, payment processing is running correctly, and bad actors lose their license to operate in Finland.

The newly minted regulator will also be responsible for managing the country’s proposed centralised self-exclusion program. If it follows in the footsteps of other well-managed regions in Europe, it will require licensed operators to link the program to their player databases to ensure excluded players don’t accidentally receive bonuses and promotions.

Operators looking to step into Finland must have a strong branding and acquisition plan, as the bill notes that in addition to the license fee, there will be a gross gaming revenue (GGR) tax of 22% paid annually.

It is worth noting that new gambling licensees will be unable to boost bottom-line revenues in Finland beyond online casino games. The bill states that Veikkaus will maintain its monopoly over all land-based gambling venues, slot machines, local lotteries, and pool betting.