Finland's Government Proposes Legislation to Empower Foreign Gambling Companies to Operate in the Market, Anticipated for 2026
In a ground-breaking move, the Finnish government has put forth a gambling reform bill to its Parliament with the intention of dismantling the country's existing state monopoly held by Veikkaus by the end of 2026.
If the Parliament signs off on the proposed changes, the current Veikkaus monopoly on online gambling will be replaced with a license system that welcomes international gaming corporations to officially join the Finnish gambling market.
Based on the report from Finnish public broadcaster YLE, the revamped legislation will establish a new licensing authority to manage the gambling industry, starting from 2026.
Despite the reform implementation, Veikkaus will preserve its lottery and scratch card monopoly. However, it will also continue its operations in casino gaming and slot machines.
As per the Finnish Competition and Consumer Authority, approximately half of Finnish citizens' online gambling spending is directed towards offshore operators. If the bill makes it through parliament, there will be no pre-set limit on the potential losses faced by gamblers.
On a broader perspective, Finland's gambling reform symbolizes a monumental shift from its historical state monopoly to a regulated licensing system, characterized by several key aspects:
Licensing System
- Partial system: The introduction of licenses for online betting, casino games, electronic bingo, and slots, while maintaining a state monopoly for other forms.
- Taxation: Licensed operators will pay a 22% tax on their gross gaming revenue (GGR). B2C licenses will be accessible from January 2026, and B2B providers will be gradually integrated into the market by 2027.
Regulatory Oversight
- New gambling authority: A dedicated regulatory body will manage compliance, enforce harm-prevention measures, and issue licenses.
- Focus on harm reduction: The reform aims to encourage channelization (diverting players from unlicensed operators) and mitigate gambling-related risks, yet the proposed ban on affiliate marketing may pose challenges.
Timeline and Implementation
- Parliamentary process: The bill is currently undergoing committee review, with a final vote scheduled for late 2025.
- Operational start: Licenced gambling activities are projected to commence in early 2027, with full market access for B2B suppliers envisioned by 2028.
Although this reformation has encountered controversy over contentious provisions such as the proposed affiliate marketing ban and disagreements with Malta, Finland remains resolute in its efforts to modernize its gambling landscape, achieving a delicate balance between commercial competition and public health safeguards, all while adhering to EU market principles.
- The license system, part of the Finnish gambling reform bill, will open the country's online gambling market to international gaming corporations from 2026.
- By the end of 2026, the Veikkaus monopoly on online gambling will be replaced with a license system, allowing international corporations to officially join the Finnish gambling market.
- The new licensing authority, established by the reform, will manage the Finnish gambling industry starting from 2026.
- Despite the reform, Veikkaus will remain the lottery and scratch card monopoly while continuing its operations in casino gaming and slot machines.
- If the bill is passed, there will be no pre-set limit on the potential losses faced by gamblers, contrary to the current situation where approximately half of Finnish citizens' online gambling spending goes towards offshore operators.
- The reform, set to bring about a regulated licensing system, will consist of a partial system with a 22% tax on gross gaming revenue (GGR) for licensed operators, implementation of a dedicated regulatory body, and a focus on harm reduction, with the first licensed gambling activities projected to commence in early 2027.
