Finland Submits Bill to End Gambling Monopoly

Finland’s government has taken a decisive step toward transforming its gambling market by submitting a bill to Parliament to end the decades-long monopoly held by state-owned operator Veikkaus.

The legislation, presented on March 20, 2025, proposes a new licensing system for online gambling that would allow private operators to enter the Finnish market by 2027, while maintaining Veikkaus’s exclusive control over certain gambling sectors.

Key Takeaways

• Finland proposes ending Veikkaus’s monopoly on online sports betting and casino games by January 2027
• Private operators could begin applying for licenses in January 2026
• Veikkaus will retain exclusive rights to lotteries, scratch cards, land-based slots, and physical casinos
• A new dedicated gambling regulatory authority will be established by 2026
• The reform aims to address the 50% market leakage to offshore operators

Dual System Maintains Partial Monopoly

The proposed legislation outlines a carefully balanced dual system that partially dismantles Finland’s long-standing gambling monopoly.

Under the new framework, Veikkaus would retain exclusive rights to operate lotteries, scratch cards, land-based slot machines, and physical casinos across Finland. However, the lucrative online sports betting and digital casino games sectors would be opened to competition through a licensing model.

“This reform represents a balanced approach that acknowledges market realities while preserving important aspects of our traditional system,” said Mari Rantanen, Finland’s Minister of the Interior, during the bill’s presentation. “Our goal is to create a regulatory solution that effectively combats gambling harms while recognizing that gambling companies want to enter our market legally.”

Private operators could begin applying for licenses as early as January 2026, with the reformed market officially launching in January 2027. This timeline provides a transition period for both Veikkaus and international operators to adapt to the new competitive landscape.

Finland’s approach mirrors similar reforms previously implemented by Nordic neighbors Sweden and Denmark, which successfully transitioned from monopoly systems to regulated competitive markets in 2019 and 2012, respectively.

New Regulatory Authority Planned

A cornerstone of the reform is establishing a new dedicated regulatory authority to oversee the transformed gambling market. This agency, expected to be operational by 2026, will assume responsibilities from the current regulator, the National Police Board.

The new authority’s mandate will include:

• Processing and evaluating license applications from private operators
• Enforcing compliance with marketing regulations and technical standards
• Conducting regular audits of licensed platforms
• Implementing and monitoring consumer protection measures
• Taking enforcement actions against unlicensed operators targeting Finnish players

Industry experts note that creating a specialized regulatory body signals Finland’s commitment to developing sophisticated oversight mechanisms tailored specifically to gambling activities, rather than treating gambling regulation as a subset of broader police functions.

Comprehensive Player Protection Framework

The legislation emphasizes responsible gambling through several mandatory requirements that will apply to all licensed operators:

• Rigorous age verification across all gambling services
• A unified self-exclusion system spanning all licensed operators
• Real-time loss tracking mechanisms visible to players during sessions
• Mandatory personal financial limit-setting options
• Proactive monitoring for problem gambling behaviors with intervention protocols

These measures represent some of the most comprehensive player protection requirements in Europe, suggesting that Finland intends to position itself at the forefront of responsible gambling regulation.

“The reform prioritizes harm reduction above all else,” explained Johanna Koskinen, gambling policy advisor at the Ministry of the Interior. “By channeling players into a regulated environment with robust protections, we can better monitor gambling behaviors and intervene when necessary, which is virtually impossible with offshore operators.”

Strict Advertising Restrictions

The bill introduces particularly stringent controls on gambling advertising, reflecting ongoing concerns about gambling promotion’s impact on vulnerable populations:

• Complete ban on influencer marketing for gambling products
• Prohibition of outdoor advertising for high-risk games like online slots
• No gambling advertisements permitted near schools or youth facilities
• Significant restrictions on promotional content and targeting techniques
• Limited advertising windows during broadcast hours

Despite these restrictions, sports sponsorships will remain permitted, providing an important revenue stream for Finnish sports organizations that have historically benefited from gambling-related funding.

Addressing Market Leakage

A primary driver for the reform is the significant “leakage” of gambling activity to offshore operators. The Finnish Competition and Consumer Authority estimates that approximately 50% of Finnish online gambling expenditure currently flows to foreign-based platforms operating outside Finnish regulation.

This substantial market leakage represents not only lost tax revenue but also diminished player protections, as Finns gambling on unregulated sites lack access to the consumer safeguards that would be mandatory under Finnish law.

“The current system has created a paradoxical situation where our monopoly model, intended to protect consumers, has instead driven half the market into unregulated spaces,” noted Pekka Virtanen, gambling researcher at the University of Helsinki. “This reform acknowledges that reality and attempts to bring those players back under Finnish oversight.”

Economic Implications

While the primary focus of the legislation remains consumer protection, the reform also has significant economic dimensions.

The new system is expected to generate revenue through multiple channels:

• Corporate taxation of newly licensed private operators
• Licensing fees for market entry and ongoing operations
• Continued dividends from Veikkaus’s remaining monopoly sectors

Government analysis suggests that the reformed market could potentially increase total gambling tax revenue by 15-20% once fully implemented, though officials emphasize that financial considerations were secondary to regulatory goals in designing the system.

Legislative Process and Timeline

The bill will now proceed through parliamentary review, including examination by various committees focused on economics, legal affairs, and social and health issues. While some modifications are expected during this process, there appears to be broad political consensus on the need for reform across party lines.

The legislative timeline includes:

• Committee reviews: April-September 2025
• Possible amendments: September-October 2025
• Final parliamentary vote: Anticipated by November 2025
• Regulatory implementation: Throughout 2026
• Market opening: January 1, 2027

International Reactions and Context

Malta, a major hub for online gaming companies serving Finnish players without local licenses, has expressed concerns about Finland’s regulatory shift.

The Mediterranean nation submitted a detailed opinion through EU channels that delayed the notification process by a month, highlighting the economic stakes for jurisdictions that host operators targeting the Finnish market.

Industry analysts note that Malta’s intervention reflects broader tensions surrounding gambling regulation within the European Union. Member states increasingly assert national control over gambling policy while Malta and other gaming hubs seek to preserve cross-border service provision.

Despite these tensions, Finland’s reform aligns with broader European trends. Numerous EU member states, including the Netherlands, Germany, and Sweden, have transitioned from monopoly systems to licensing models in recent years.

Future Outlook

As the bill progresses through Parliament, several key questions remain about Finland’s gambling future:

• How many operators will seek Finnish licenses, given the strict regulatory requirements?
• Will the channelization goals be achieved, or will significant offshore activity persist?
• How will Veikkaus adapt its business model to compete in the liberalized online segments?
• Will the reform actually reduce problem gambling rates as intended?

What is clear is that Finland’s gambling reform represents the most significant overhaul of the country’s gambling framework in its history.

By dismantling Veikkaus’s monopoly on online betting and casino games while maintaining its exclusive rights in other sectors, Finland aims to create a balanced system that enhances consumer protection, increases tax revenue, and aligns with EU market practices.

“This is not about creating a free-for-all gambling market,” concluded Minister Rantanen. “Rather, it’s about acknowledging current realities and building a sustainable regulatory system that works for Finnish society in the 21st century.”

Sources

1. iGaming Business: Finland gambling reform bill enters Parliament
2. Gambling Insider: Finland submits bill to end gambling monopoly
3. Times of Malta: Finland gambling reform delayed as Malta submits detailed opinion