New Era Begins For Finland’s Gambling Industry

Finland’s parliament has overwhelmingly approved a new gambling law that dismantles the long-standing monopoly held by the state-owned Veikkaus Oy. The decision marks a pivotal moment in the country’s gambling landscape, transitioning to a multi-licence system aimed at regulating online betting and gaming more effectively. The bill received a 158 votes in favour, with only eight dissenting voices.

The proposed changes to Finland’s gambling framework were initiated by the government earlier this year, following extensive discussions that have spanned over two years. The new legislation aims to replace the existing monopoly system, which has been deemed outdated and ineffective in addressing the realities of modern gambling practices.

Key Features of the New Law

Under the new framework, Veikkaus will continue to operate land-based gaming and the National Lottery, while the multi-licence system will govern online gambling activities.

• Implementation Date: The new multi-licence regime is set to commence on 1 July 2027.
• Regulatory Body: A newly established Licensing and Supervision Agency will oversee the market, taking over responsibilities from the National Police Board.

Broad Political Consensus

The overwhelming approval of the gambling reform bill indicates a broad political consensus on the need for change. Representatives from various political parties expressed their support during the parliamentary discussions, highlighting the necessity of adapting to the evolving gambling landscape.

Despite the strong backing, some opposition members raised concerns regarding the potential implications of the new system. Proposals to ban advertising, bonuses, and sponsorships in sports were put forward but ultimately rejected.

• Health Warnings: There were calls for health warnings to be included in gambling marketing, akin to regulations for tobacco products.
• Taxation and Age Limits: The opposition also suggested setting the gambling tax rate at 25.5% and raising the minimum gambling age to 20.

Industry Reactions

The gambling industry has largely welcomed the legislative changes, viewing them as a necessary step towards a more regulated and competitive market. Veikkaus, in particular, has been vocal about the need to reform its monopoly status, citing challenges posed by unregulated offshore operators.

• Channelisation Rates: Veikkaus has reported declining channelisation rates, with estimates suggesting that between €600 million and €900 million is gambled outside the official system annually.
• Regulatory Benefits: The company believes that a multi-licence market will enhance player protections and generate additional tax revenue for the Finnish government.

Industry leaders have expressed optimism about the new regulatory framework. Velipekka Nummikoski, Deputy CEO of Veikkaus, stated, “We have been waiting for a model that improves the possibilities of channeling gambling into a licensed offering.” This sentiment is echoed by other stakeholders who see the potential for a more vibrant and responsible gambling market.

The transition to a multi-licence system is expected to reshape the gambling landscape in Finland significantly. By allowing multiple operators to enter the market, the government aims to create a more competitive environment that can better serve consumers while ensuring responsible gambling practices.

While the current legislation has passed, the political landscape surrounding gambling in Finland remains dynamic. Opposition parties may revisit their proposals for stricter advertising regulations and other consumer protections in future discussions. The experience of other countries, such as the Netherlands, may serve as a reference point for potential reforms.